Best Way To Get Out Of Debt Fast

Best Way To Get Out Of Debt Fast – This blog explains 7 ways to get money fast. Here are seven things my husband and I did to pay off £36,000 in 2 years.

According to a report by the Trades Union Congress (TUC), the average total debt of all households in the UK, excluding mortgages, is approximately £15,385. This report was made in 2018, in light of the events of 2020, I think the picture is even. more today in 2020.

Best Way To Get Out Of Debt Fast

With more than 8.3 million people in the UK now in debt, it has never been more important to discuss money issues and offer solutions to help people deal with their debts.

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So in this blog post I’ll share seven things my husband and I did to pay off over £36,000 of debt in 2 years. It’s not easy and definitely requires a lot of blood, sweat and tears. However, if you are willing to commit to the process, you too can become debt-free and achieve all of your future financial goals.

When we’re tired of being in debt and not having enough money to even pay our bills, we finally admit to ourselves that we have a problem. We are plunged into the depths, and it is our duty to get out of it. Face your debt, stop running and hiding from the situation. Don’t bury yourself in the sand. Make a list of all your debts and add them all up.

This stage is very difficult for us, we know we have a lot of debt but have no idea it’s worth over £36,000. Seeing these numbers on the report is the shock we need to encourage us to continue living debt-free.

Once you recognize the problem and know exactly how much you’re worth, the next step is to create a budget. There are many ways to spend money. Personally, I prefer zero-based budgeting. This method assumes your income minus debt is zero. You need to know exactly how much will come in and out of your account each month for different categories of your budget, this will prevent money from slipping through your fingers.

How To Get Out Of Debt Fast (even If You’re Dead Broke)

If you don’t have a budget and don’t know where to start budgeting, I encourage you to download my free zero-based budget template. However, if you need more help, please reach out for financial advice and I will be happy to help you and create your budget that works for you.

Once you’ve created your budget and have a clear picture of where your money is going, the next step is to look for ways to improve your debt. Review all your expenses and find ways to save in each category.

Some groups are fixed so you can’t do anything to reduce them. However, there are other debts that fluctuate greatly, and with lifestyle changes, you can reduce them and invest money in paying off the debt.

For example, when we first created a budget and started looking for ways to reduce our debt, one of the things we made big money on was our food budget. I switched from buying groceries online at Tesco to shopping at Aldi and in store and managed to cut my grocery bill from £300 a month to £200. Another way to save money is to cancel some monthly subscriptions and set up your own. entertainment allowance.

How To Get Out Of Debt Fast (i Did It; So Can You!)

This reduction in our equity means we have more money available each month to pay off debt.

Once you’ve reduced your debt as much as possible, calculate exactly how much money you can pay now to pay off your debt each month, and then work on your debt.

For example, if your total debt is £10,000 and you can allocate £175 from your monthly budget towards debt repayment, you can calculate your debt free date:

£10,000 / £175 = 57.14 months or in other words 4 years and 9 months until you are debt free.

How To Get Out Of Debt Quickly

If you’re doing well and have almost 5 years to pay off your £10,000 debt, you don’t need to follow these steps. However, if you want to get out of debt faster, you need to find ways to increase your income.

When we were persistently trying to pay off the debt, I worked part-time. Selling household items we no longer use. I do friends and family’s hair, my husband works overtime between work and private work. Get creative and think of different ways to make extra money. Any extra money you earn goes directly into debt.

Whether it’s volunteering, extra work, sales, or even research, find ways to earn extra money that you can use to pay your bills.

When you start seeing this extra income, it may be tempting to want to use it, but don’t. Train yourself to invest the money you earn directly into debt, and your debt will quickly decrease.

How To Get Out Of Debt Fast?

Failure to practice delayed gratification is why we got into so much debt in the first place. Well, this is beyond our means. Not everything you want to buy should be bought on impulse. Take time to think about your purchase before you commit. Learn how to save money for things you want to buy, instead of buying now and facing the consequences of your impulse buy later. Take the time to understand the difference between what you really want and what you just bought because you thought you had the money for it.

When I was a child, my mother always said: “Don’t be too much, not everywhere you are told to go, you have to go.” As a child, I thought this was the biggest fun, but he didn’t want me to have fun and enjoy life. However, now that I understand what it means, it makes more sense to me.

“It’s important to know when to say no.” Not everywhere you are invited. If it’s not in your budget and you haven’t budgeted for that money, don’t do it. Don’t let others budget your money or feel the need to spend money you don’t. Calculate the cost before making a financial commitment. Focus on your goals and don’t let anyone distract you from your studies.

I’m not saying don’t enjoy life, by all means, enjoy it. But the cost of achieving your goals is negligible. If it’s not in your budget, say no and make it move.

Top 10 Ways To Pay Off Debt Fast

Any money you can save, save it. Or, if you’re trying to get out of debt, use any money you save to pay off debt. So, for example, let’s say you’re on your way home from work and are about to go to the store to buy a magazine, but you end up changing your mind and don’t buy it. The money you spend on these magazines goes towards paying off your debt. You will run out of money, so make an effort to pay off your debt.

Here are seven things we did when we became debt free that helped us get out of debt in two years. I hope you find them useful and help you on your financial journey.

If you are currently on the path to debt freedom, what have you tried to help yourself along the way?

If you enjoyed this post, 7 Ways to Get Out of Debt Fast, then you may also enjoy my other blog posts on similar topics. Check them out below:

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A financial coach and content creator dedicated to helping women break the salary cycle and achieve their financial goals by harnessing the power of thinking about spending, saving, investing, and side hustle. When I’m not talking about money, you can find me spending time with my three handsome boys.

Tolu Frimpong does not give financial advice. All information on this site is for educational and reference purposes only. Use of this site is entirely at your own risk. You should do your own research and seek specific financial advice. Don’t miss our FREE video tutorial: Create beautiful Canva images quickly and easily! Learn how to take your Canva design from bland to BAM! No art education or expensive software required! Take your place in the FREE video training HERE…

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