TEN WAYS TO GET OUT OF DEBT
Are these difficult times and interest rates driving you crazy, making it more ruined than ever? Here are ten simple tips on how to deal when money runs out, use this action plan to clean your financial board.
• Set priorities. Make some lists, each showing your weekly, monthly, quarterly and annual income and expenses. Take your lists and consider which expenses can be reduced or which ones you can eliminate completely. Prioritize your bills and expenses, if you cannot pay them all, that is no excuse for not paying at least some of them, or paying at least something for each of them. The important question here is what to pay first, how much to pay and what to do with others.
• Reorganize your bill payments. You can avoid the misery of large annual or quarterly bills by paying in more regular installments. Alternatively, you can open a separate account, in which you pay a regular lump sum each month, and then make arrangements with Internet banking for your bills, mortgages or rentals, municipal accounts, etc. Pay from here every month. Divide the amount you have available for payment, so that each and every account receives at least one part paid each month.
• Watch for mortgage savings. This is likely to be your biggest monthly bill, so start comparing prices. You may consider moving to a fixed rate mortgage with the advantage of telling you what you have to pay in advance. Be sure to do everything possible not to delay mortgage payments, you could incur large fines or even lose your home for being left behind.
• Avoid living on credit. Living on credit can be dangerous. Consider your credit cards as a means of paying bills instead of a source of additional income or ashes, since interest rates are extremely high on credit cards. If possible, pay your credit card bills promptly, every month, a black mark on your credit reference can be extremely difficult to eliminate and very embarrassing to live with.
• Verify your benefits. Find out if you are eligible for any state or private benefit. If you are unemployed, elderly or disabled, you may be eligible for certain benefits, or you may even receive some goods and services at a discounted rate. Every little help and, although it may be small, can make a big difference for you and your family.
• Be careful with lenders / cash loans. You see them everywhere, ads that invite you to borrow money at high interest rates. Whatever you borrow, and whoever it is, suspiciously suspect. Read the fine print first to make sure you’re not getting into something that you really can’t afford, or that will make you drown even more in debt, just to ease your short-term problems. Instead, talk to an independent financial advisor or your bank. The bank manager will probably already be aware of your difficulties and be well disposed and equipped to help you.
• Sell something. Turn your mess into cash, try to have a garage sale, or try to get rid of non-essential household items through a flea market or thrift stores. For your most valuable possessions, an antique store or fair can be useful. Ask several sellers and store owners to give you the best price and negotiate with them. Once you have a guide from several sources, you decide what to do with the things you want to sell.
• Be cautious. Try to negotiate, some stores, especially larger ones, may be prepared to lower the price of their products for cash instead of plastic. Then buy in supermarkets at night, when prices for fresh produce and other perishable products can be reduced. When buying special offers, or anything that is marked, check at the point of payment that in fact you have been charged the correct amount.
• Sell your skills. Use any special skills you have, such as writing, word processing, upholstery or accounting to earn extra money at home or even online. You can even transform your hobbies into money makers too. Try to work for people you know and be attentive to all those who enrich themselves with quick schemes and the numerous work opportunities from home, most of these are scams and you can end up losing your money instead of getting something extra. If you also have additional rooms or space without which you can live, accept some guests even if only temporarily, the additional income should be very useful.
• Involve your family. Don’t hide your worries and money problems from your partner and your children, you might be surprised that they are valuable supporters. Children can even volunteer to take a newspaper round, take care of children or some other part-time job that helps them help. They could even propose some useful ideas on how you can get out of the situation. And in case you have to change your lifestyle to get out of debt, remember that people whose good opinion matters to you, those who love you will not think less of you because you no longer live in that big house or drive that bright car They could even respect and admire you even more than before. Children may not like to move, but we are all adaptable, and they too, and most of all they dislike not knowing what is happening, but everything could turn out to be a great exciting family adventure.
After everything is over, and you have worked hard to get out of debt and get back on your feet, nothing will stop you from returning to that great house or changing your bike for four times four again.