Here these are following…
1. Evaluation what you expend – where can you make savings?
Once
you've drawn up your budget, take a detailed look at your spending.
If you've got an expensive car and the finance
for it is crippling you, can you sell it and buy a less expensive vehicle,
perhaps by taking out a minor credit? Or perhaps you could save on petrol and
use the car less regularly, by doing a car share or cycling to work instead?
The
more you can save, the more you can put towards repaying your balance.
2. Deposit your funds under the microscope
Fully
detail what you spend each month. A great way to do this is on a spreadsheet.
3. Eliminate the temptation to get into more debt
- Cut up any credit cards and
store cards you're trying to pay off so you're not tempted to spend any
more on them.
- Secure any credit card accounts
that you don't use or have a balance on.
- Inform your credit card
providers to reduce your credit limits.
4. First repaying your most expensive debts
- Repay your debts in order of
the interest rates they charge, and aim to repay as much per month as you
can.
5. Repay your debts more efficiently
You
may be capable to save money just by variable balances from your more costly
credit cards to your least expensive card. This also goes for any store cards,
which tend to be more expensive than the normal interest rates charged by
credit card providers.
6. Shift debt to a 0% balance transfer credit card (if you're
disciplined)
Applying
for a long 0% balance transfer credit card can be a excellent idea, as it can offer
you the chance to pay off all, or a large amount, of your debt without paying
interest on it for an opening phase. You will have to pay a balance transfer
fee to move debt across (typically up to 3.0% of the amount you transfer), but
this is still cheaper than having debt charged at upwards of 16% per year!
7. If you think you're in over your head…
There's
no debt issues that can't be resolved, even if you're concerned about the procedures
you may require to take. But with debt you can be sure that the longer you
leave a problem unaddressed, the worse it will get.
8. Stay motivated to get debt-free
Although
it's never exciting repaying debt, getting out of it will be, so make sure to
keep yourself motivated to help you reach your goal.
