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Insights on money, career and trading

Getting Out of Debt the Quick and Easy Way

Posted on March 1, 2015 by Daniel at 2:10 am

Being in debt is a horrible feeling. You need money to live, and emergencies can quickly arise. This means you get into more and more debt until you just can’t see a way out of the mess. The important thing to do is remember that you CAN get through this. Follow these steps to getting out of debt as quickly and easily as possible:

Contact a Financial Advisor

First thing is first; contact a financial advisor. They are professionally trained and will have a good idea on how you can get out of this bed you’ve made. Places like the Law Offices of David Offen will have seen plenty of situations like yours before, so they’ll have a good idea of how to sort yourself out. Book an appointment ASAP and it might help you to clear your head.

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picture credit: Flickr

Decide Which Way to Tackle Your Debts

There are a couple of ways to tackle your debts, the two most popular being the snowball and snowflake. The snowball method involves you looking at your debts as whole, listing them from smallest to largest and then paying them off that way. Ignore the interest involved, just start paying them off. You’ll start to build up momentum and feel good about paying them off. The snowflake method involves you paying off larger debts with smaller chunks of money. You simply keep hacking away at them, so your overall balance of debt is continuously getting smaller and smaller.

It’s totally up to you which way you choose to tackle these debts; whichever way makes you feel the most confident, comfortable, and able to continue. The sooner you start paying them off, the better.

Cancel Credit Cards and Accounts

If you have any credit cards or accounts, stop using them immediately. This step is so important. Cut up the cards or bury them in the garden. If you continue to use these accounts, you have a much deeper problem than debt. Get counseling for addiction.

Cut Back on Luxuries

Cut back on as many luxuries as you can and just buy the essentials. Before buying anything, ask if yourself really need the item. If not, leave it. Make the most out of what you already have and make new healthy spending habits. You’ll need them for when you’re out of debt anyway!

Find Ways to Save on Essentials

You still need to buy the essential food and toiletries, but find ways to save on them. Save up coupons and points to get money off. Shop the cheaper brands rather than the most expensive, because more often than not they’re just as good. In fact, you could scour new supermarkets to see if you like them better.

The important thing to do is remain consistent and don’t lose sight of why you’re doing this. Make a list of things you’ll be able to do once you’re out of debt. If you want to buy a luxury, think of what you want most over what you want now. That should help you to move forward.

 

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Insights on money, career and trading