The prison of debt is a powerful one that can not only take away all your energy and make you feel as if there’s no escape but it can also have an extremely physical effect on a person. Night’s spent worrying and not sleeping can stretch out into long days of exhaustion and the feeling of futility can have a severe impact on everything around you.
Fortunately, dealing with debt is a lot easier than you may think. There are several easy-to-follow solutions and measures which you can take to ensure that you life is not controlled by your finances. Here are five top tips to follow:
Cancel your credit cards
First thing’s first. You have to ensure that no extra debt is being stacked on top of what you currently owe. Cancelling your credit cards is essential and means that you will now only have to deal with your personal finances in the short-term rather than using a credit card to escape from one scenario only to end up facing it a few months down the line instead.
Look into changing your account
How you spend your money is not the only thing which should be considered when trying to manage debt, how you save your money is equally as important. Changing current accounts to one with a higher rate of interest or larger rewards can allow you to make a bigger return on your investments – giving you more money to play with in the long run.
Cut back on non essential spending
Things like eating out, shopping regularly or other non-essential activities should be radically cut back. Doing this for a short time will give you more money to put towards clearing your debt allowing you to enjoy these luxuries when you have the funds to do so. Although it’s nice to eat out or buy something for yourself every once in a while, it’s much more special when done as a treat that you’ve earned.
Think about an IVA
An individual voluntary agreement with a company, such as a Harrington Brooks IVA solution, could genuinely help you rid your debt and avoid bankruptcy. An IVA will, in most cases freeze the interest that you are accruing and you will work closely with your creditor to ensure that you repay only what you can afford to.
You can often do this over a fairly large expanse of time. If you’re struggling to repay your debt and your monthly payments are just managing to cover your interest then this could be a seriously good option.
Write a plan and stick to it
In the end, all major debt is overcome in one way: by writing down a financial plan and seeing it through. No matter how much debt you are in, if you draw up a monthly chart of your finances and overheads you will be able to see the picture clearer and work proactively to change it.