A huge number of people these days find themselves trapped in an unenviable position purely due to the level of debt they are in. Debt can have a huge negative impact on your life, leaving you unable to do the things you want and in some cases unable to cope with day to day requirements such as buying food or paying bills.
Of course, there are resources available to help those who are in unmanageable levels of debt, such as counseling services and debt management. However, you can also take steps to help yourself to emerge from the debt trap that you’ve found yourself in.
How you help yourself
Reports on Fox News have highlighted the problems being faced by many households in debt. If you are in a debt trap and want to take action, some of the measures that could help include:
- Keep track of your debts: You will find that it is far more difficult to escape the debt trap if you have no idea what you owe or who you owe it to. It is vital that you monitor and track your debt information carefully so you always know what position you are in. This means listing all creditors, the amounts you owe, how long you have left on the finance, and the amount you are paying each month. By tracking and monitoring your debts more efficiently you will find it easier to manage and repay them.
- Close down credit and store card accounts: It can be a huge relief when you finally finish paying off a credit or store card. However, many people simply end up getting back into debt by spending on them again. In order to avoid this vicious circle, make sure you close down your accounts once the debts are repaid. This will help you to avoid getting back into debt and could help to protect you from annual fees or even card fraud.
- Control your spending: For some people, getting out the debt trap requires little more than reining in their spending. If you owe a lot of money, you’re not doing yourself any favors by spending what you have left frivolously. Instead, cut back on the amount you spend on non-essential items and instead put the money towards paying off your debts, as this will get them cleared far more quickly.
- Consolidate: If you have a lot of different high-interest loans, you may want to consider debt consolidation. This means that you will have just one creditor and debt to deal with and you can reduce the amount of interest that you pay on your borrowing as well as cut the amount that you have to pay each month.
- Snowball your debts: You may have debts that all finish at a variety of different times. In order to get all of your debts cleared as quickly as possible, draw up a plan to snowball your payments. This means, as one loan or debt clears you put the repayment towards another loan or debt. When that clears, you put the money from the previous repaid debt and this one towards the next one, and so on. This can really speed up debt repayment for those who have a range of debts.
With these steps, you will find it far easier, far quicker, and far more manageable to finally get out of the debt trap that you may have been stuck in for years.Wake up Right! Subscribe to our Morning Briefing and get the news delivered to your inbox before breakfast!