Getting a grip on your finances is a tough task for anyone. Outstanding balances, creditors calling, accounts in arrears… sound familiar?
Here are a few ways you can shed your debt.
Battle of the interest
One of the most effective ways you can start cutting down on what you owe is to start paying off the creditors that hold the highest interest rates. A high interest rate means that you are paying more, so the quicker you can get rid of these, the better. Once an account is settled, take that instalment and add it to another debt repayment to squash it in half the time.
A little goes a long way
Instead of sticking to exactly what your instalment is, if you are able to pay a little more toward any of your accounts, you should. This way, your balance lowers quicker and the contract term starts to fall quite quickly too.
Create a budget
We know you probably hear this all the time but creating a budget is a must-do if you want to cut your debt and save money. By having a look at your income and expenses, you can plan accordingly. You should also be able to create a rainy-day savings fund once your debt is paid up.