Five Things You Can do Today For a Debt-Free 2019!
As we approach the end of the year, it’s a good time to reflect. Did you achieve everything you set out to do, or are there things you could push for in the final few months? When it comes to your finances, taking action now could put you in the best position and hopefully even mean a debt-free 2019. Here are some ideas for going about it.
Cut up your credit cards
The first step to sorting out your debt is to stop utilising your balances. Most of us get trapped in a cycle where we pay off some of what we owe, but then spend right back onto them again. Cut up your credit cards and no longer see these as a way of accessing cash. That way, every payment you make reduces the balance and you’re not constantly going back and forth.
Consolidate your debt
Having lots of debts in different places can be confusing and expensive. Not only do you have to remember to pay each of these companies every month, but lots of different interest rates means you’re more than likely paying over the odds. The best way to pay off debt fast is to consolidate- here you take out a loan or credit card that covers the amount of your other balances and pay them all off. Now everything you owe is in one place, making it much easier to manage. You can often find companies that give you an interest free introduction period. Pay off as much as possible and it will be deducted right from the balance instead of being taken up by interest.
Speak to a debt charity
If you don’t have a great credit score, you might not be able to take out a loan or credit card big enough to cover all of your debts to consolidate. If you’re struggling keeping up with payments, then it’s well worth speaking to a debt company or charity. They will negotiate a reduced payment plan with your creditors, and can even have interest frozen making it much easier to pay off the balance. When debt is mounting, this is the best way to get things back under control, and can really feel like a weight has been lifted.
Sell things you don’t need
Most of us have items at home that we no longer need or use, and so selling them can help raise money to pay down debts. Old mobile phones, tablets and laptops. Antiques, jewellery, even things like clothes and discs have a market for them. Sell on places like eBay, at boot fares or Facebook marketplace. Any cash that you can raise from an item you don’t need can be paid towards debt.
Earn some extra cash
Finally, any other money you can earn on top of what you already get can go straight towards your debt. Perhaps you could pick up some extra shifts at your job? It’s hard work but will be so worth it once your money situation is under control. You could start up a side hustle, or even something as simple as filling in surveys can earn you a couple of pounds which can all help.
Check out my side hustle page for some ways that you could start earning some extra £££’s to help you on your debt-free journey!