Many people find that debt is piling up and there doesn’t seem to be a way to keep on top of all those monthly repayments which just keep coming in. At some point it is important to take a good long look at their finances to see where they can cut back but still put food on the table and keep a roof over their heads.
Here are 3 tips for anyone who is in a quandary over how to break free from debt.
Tip 1: Taking Stock of Finances
It is at this point where it becomes necessary to determine whether or not there is enough money coming in to cover what is owed. Some find that they need to take on an extra job to make ends meet whilst others seek debt management advisers to help make arrangements with creditors. Carefully calculate exactly what is being netted each month and weigh that against what is being paid out.
If there is little disposable income, then it is truly time to seek help. Don’t forget to take interest rates and surcharges into account when calculating such things as credit card and merchant accounts. Some of these may have variable rates attached which could be set to rise in the near future. This can significantly affect the amount of your repayments.
Tip 2: Contracting Part Time
Actually, finding a part time job to subsidize income is not a bad idea at any time, but when debt is out of control this is a viable option. Depending on how far in arrears bills are, it may be possible to catch up quickly with a bit of extra income. Many professionals find that they are able to work from home within their field of expertise for one very good reason.
Many companies are downsizing and as a result, full time employees have been made redundant. Whether a job is online or a service is offered locally, contractors are in great demand during this time of austerity. Believe it or not, many successful businesses were built up in just this way. The entrepreneur only set about to bring in extra income and ended up running a flourishing business full time!
Tip 3: Knowing When to Seek Professional Advice
There may be times when debt far outweighs income and professional debt counseling would be the best starting option. It still wouldn’t hurt to find extra income but that might not come in fast enough to settle up with creditors. Keep in mind that the initial consultation should be free and only services a debt management company provides on behalf of consumers.
In fact, there are often several ways to go about satisfying creditors such as a Debt Management Plan or a Debt Relief Order. Although two consumers may have comparable income and debt, there is no one-size-fits-all debt management solution. There are debt calculators available online which can help determine within just a minute or two exactly how far in debt you truly are.
With sound advice and a good plan of action, it really is possible to become debt free. It may necessitate using the services of a debt management team as well as finding part time or work from home jobs to subsidize your income, but the sooner you take steps to resolve your finances, the sooner you can be back on solid ground financially.
Filed under: Finances
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