So you’re in debt, and while it’s not going to be one of your proudest moments, there’s no point being embarrassed about it. In fact, it can happen to anyone. What may have started out as a simple loan to pay for that new car you wanted, could end in multiple loans to add the extension on your house, invest more in your small business, and take that two weeks vacation. It’s so easy to do, we get greedy or desperate, and then end up stuck. But don’t worry, here’s how to get you out of it.
Study Your Account
Even if it’s a bore going through everything – it’s essential if you want to figure out how to manage your problems. So when you have a spare few hours, sit down and go through all your accounts and finances. Look over your previous utility bills, house insurance, car insurance, health insurance, taxes, grocery bills, and any other things that are coming out of your bank. As well as what’s coming in too like your income. Then you can begin to have a real understanding of where the issue lies, and what you can do to solve it.
The 60/40 Scheme
The 60/40 scheme is a way of managing your income responsibly. You will need to open a separate account for this, and the idea is that every month when you get your payslip, you put 40% of it into your new account that you’re not allowed to touch by any means.
The other 60% is what will be put towards your monthly utility bills, grocery shopping, and any personal use. This works best if you make this an automatic withdrawal so that you don’t even get time to look at the money before it’s gone into your new account.
Debt Consolidation
Although you may have many outstanding loans to pay off, the answer to your problems may be with another loan. Debt consolidation means you are able to take out a final loan to pay off all of your outstanding credits, essentially solving all of your problems.
Then all you’re left with is a final sum to pay when you have the finances. Look on debtconsolidate.company for more information. They will explain how it works, along with all the other benefits that follow.
Make a Priority List
And get rid of everything else, for now. Your main priority when in debt, is to pay off what you owe, but you also need to pair that with paying your monthly bills too, otherwise you’ll be creating another problem for yourself. But if that means canceling the sports channel and having quiet nights in on the weekend – do it.
If you prioritise the things that you have to pay for, you will be able to avoid a conversation that means you lose your house or your business. A bankruptcy attorney can talk you through what you need to do to avoid bankruptcy, and if it’s not avoidable, you’re going to be supported through it. Prioritising your expenses will also help you to keep your debts at bay post-bankruptcy, which is so important to get you back on your feet. Your priority should be staying out of debt for the long term!