Do you have debt problems? Are your repayments taking a large chunk of your take-home pay? Are you paying high interest on your credit card debt or penalty fees for late payments because the money was just not there that month?
Many people find finances tight from time to time but if you are routinely having trouble paying your bills, then it’s time to seek help. There are 4 simple things you can do to ease the financial strain.
1. Take Stock
Write down all your monthly expenses and compare that against your monthly income. If you are not earning enough to cover all your monthly bills – then your expenses are too high. The point is, once you list your expenses you will be able to see what you are spending your money on and where you might make savings.
2. Identify Savings
Be realistic; there is no point in cutting your expenses on paper if you know that it will be difficult to maintain.
If you have a mortgage, changing the interest rate or terms on your home loan may provide savings. If you are renting a home, could you find a cheaper property or sub-let a room?
What does your car cost you to maintain and run? Do you have a car loan with high repayments? Is there a cheaper option; such as taking public transport, downgrading your vehicle or finding a lower interest rate?
There are also some simple things you can do that can make a difference over time. For example, around the home you could switch off lights and appliances that you are not using, use cold water to wash your clothes, take shorter showers and make your lunch instead of buying it.
If you can’t identify any real savings, you could consider selling assets. For example, if your mortgage is too high, you could sell your property and rent for a while. Caution should be applied though. There is no point in selling your property if you will lose money and you should also take into account what your rental payments will be. Sometimes rent can be higher than mortgage repayments.
3. Consolidate your credit card debt
One of the most common forms of unnecessary debt (and which can cause you a lot of stress) is interest charges on credit card debt.
Many people have a number of credit cards and some people have many cards maxed out and pay only the minimum repayments each month. The overall cost of interest can contribute to debt problems.
There are credit card providers who offer low or no-interest rates as an introductory offer. Consolidating the debt on a number of cards into one low interest charging card may allow you time to get on top of the repayments. It is also easier to track your spending when there is only one card and easier to manage when there is only one monthly payment.
Again, be realistic. There is no point in doing this unless you can be disciplined about meeting the necessary payments.
You should also close all your old credit card accounts.
4. Seek Help with Your Debt Problems
If you have done all you can to identify savings and minimise future costs, and you still can’t manage your debt, you should seek help.
There are debt experts who can help you sort things out and they can also identify ways for you to save money on repayments, penalties and interest rates.
There are a number of debt solutions available to you, such as entering into a debt agreement, debt consolidation or filing for bankruptcy. There are consequences to all these solutions and a reputable debt expert can provide you with more information.
GET OUT OF DEBT provides a renowned debt service and has helped thousands of Australians relief the stress of debt. Their people can help you find ways of getting out of debt while saving you money into the future. They can present you with options and solutions tailored to your circumstances.
Call today on 1300 962 252 for a free consultation and take the first step to overcoming your debt problems.
Alternatively you can go to their website, GET OUT OF DEBT, to gather more information or request a free consultation.