If you are in debt, you may think that this is always going to be the case and that there isn’t a great deal you can do to get out of debt. It is easy to see why some people will think like this but it definitely isn’t the case. Many people have managed to resolve their financial issues, which means that they can look forward with confidence. While these people may have gotten out of debt in very different ways, you’ll find that they all had a plan and worked hard to get free of debt.
Getting free of debt is difficult, and don’t let anyone tell you otherwise but if you are sensible and committed to being free of debt, you should find that you can move forward with confidence.
How much Debt do you have?
One of the biggest issues that many people have with debt is that they don’t know the true extent of their debt. You can see why a lot of people would decide to bury their head in the sand when it comes to debt as opposed to knowing every penny of their circumstances, but you can see why this is the wrong approach.
If you are serious about being free of debt, you need to be honest and find out how much debt you are in. Only after this stage will you be able to work out what you need to do in order to be free of debt.
How much Money do you bring in and can you bring in more?
Once you know what your debt level is, you have the platform to move forward with your finances but you’ll need to then work out your income and outgoings. It is important to devise a plan of what you can spend and pay off each month and this means you need to look at what you spend. A lot of people find that they spend a lot of money on things that they don’t need, and when you put your monthly budget or expenditure into black and white, it suddenly becomes a lot clearer on where you can act.
While getting out of debt does require people to cut back on certain items of expenditure or to improve their income, you often find that there are many ways to make savings. Being more frugal in your approach can speed up the debt removal process and it can also help you avoid having no fun or life at all while you do so.
What are the most effective ways for you to be Free of Debt?
If you are serious about moving free of debt, you want to make sure that you know the most effective ways of being free of debt. For many people, debt consolidation is a very sensible solution but it is not for everyone. For debt consolidation to be a viable option for you, you need to find a rate of APR that is more attractive than your existing rates of APR. Depending on your current debt, and the sort of finance you are likely to receive, this may be easier said than done. However, this is a strategy that is well worth considering and you’ll find that most debt experts will at least advise you to consider this strategy of getting out of debt.
Do you have people who are willing to support you get out of debt?
One way in which you can find a good level of APR is to apply for a guarantor loan. If you are serious about taking out a guarantor loan, you will need to find a friend or family member who trusts you and who would be willing to vouch for you. Not everyone has this, so you may need to think seriously about your options, but if someone who has a good credit score is willing to vouch for you, you’ll find that you are going to be moving in the right direction.
Given that the level of APR associated with guarantor loans is quite affordable, there is a good chance that this style of loan will be ideal for you in your attempts to move clear of debt. This is why asking people you know if they would be willing to act as a guarantor for you may go a long way to helping you take control of your finances again.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.