Eliminating debt and living a financially stable life is a dream for everyone. As a matter of fact, you cannot achieve financial stability if you have debt hanging on your head.
As the world recovers from the Covid-19 pandemic, it turns out more and more people are drowning in debt. The domestic debt in the world has almost doubled and the only question I get to hear these days is how to get rid of debt?
Well, you need not worry anymore as I have come up with some effective steps to get rid of debt from your life and return to normalcy. The following are a few things you need to do:
Make Peace with the Situation
The first thing that you need to do in such a situation is make peace with it. Once you accept the situation for what it is, things become simple. Plus, the more relaxed you will be, the better decisions you will make.
Impulsivity and repulsiveness only make matters worse. Hence, I suggest you accept the situation and look forward to a better, healthier, and financially stable future. What happened, happened. Leave the past where it belongs and accept the present for what it is. That’s the key to a successful and peaceful future.
Renegotiate with Your Creditor
The second thing that you need to do is renegotiate with your creditor. As you know, all debts come with an interest rate, and paying off debt isn’t as difficult as paying off the interest fee. Thus, it’s time you renegotiate with your creditor about the interest fee.
For this, either you can talk to your creditor on your own and ask them to reduce or waive the interest fee or you can hire a third party to handle the issue professionally. Once the interest rate is settled, it will make paying off debt easier.
Choose a Debt Repayment Strategy
If you wish to successfully eliminate debt, you must have an excellent debt management strategy. Moving in a direction you know nothing about would lead you nowhere. Therefore, having a direction is mandatory when you’re on the road to paying off your debt.
A debt repayment strategy can help provide you with a direction. If you ask me; I suggest you go for an IVA, also known as an individual voluntary arrangement. It’s a legal contract between you and your creditor that buys you more time and settles the interest rate as well.
Ditch the Credit Cards
When paying off debts, one thing that you need to be very careful of is accumulating more debt. Needless to say, credit cards come with the highest interest rate. In case you’re not able to pay your credit card bill in full, it can burden you with credit card debt, which is most difficult to handle.
Thus, you need to be on the safer side. Switch to cash and ditch credit cards for a while. When shopping with cash, one tends to be more careful about the price and quantity of things. The reason is, you always carry a limited amount of cash, so you cannot buy everything at once.
Increase Your Earnings
Lastly, if you want to grow financially and pay off your debt quickly, know that your current job is not going to cut it. Increasing your income is a must here or else, this process will become exhausting and tiresome for you.
The best part of the story is that increasing your income isn’t as complicated as it seems. You can do that by setting up a side business or if that’s not possible, you can invest your savings into someone’s business and take your monthly share from his earnings.
Nothing is impossible if you work for it. Follow the tips shared above and get yourself on the right track. Good luck!