How To Get Out Of Debt Fast On My Own

How To Get Out Of Debt Fast On My Own – This blog explains 7 ways to get out of debt fast. Here are seven things my husband and I did to pay off £36,000 in 2 years.

According to the Trades Union Council (TUC), the average total household debt in the UK, excluding mortgages, is around £15,385. This report was produced in 2018. In light of the events of 2020, I consider this figure Higher today in 2020

How To Get Out Of Debt Fast On My Own

There are currently over 8.3 million people in debt in the UK. It’s more important than ever to have conversations about money and offer solutions to help people manage their debt.

The Easiest Way To Get Out Of Debt (even On A Low Income)

That’s why in this blog post. I’m going to share seven things my husband and I did to pay off over £36,000 of debt in 2 years. It is not easy and requires a lot of blood, sweat and tears, but if you are willing to go through the processes. You too can become debt free and achieve all your future financial goals.

When we are tired of being in debt and not having enough money to pay the bills. Finally, we have to admit that we have a problem. We are digging ourselves into a deep hole. And it’s our responsibility to dig ourselves out of that hole. Face your debt. Stop running and hiding from your situation. Don’t bury your head in the sand. Write a list of the debts you owe and count them all together

This stage was very difficult for us. We knew we had a lot of debt, but we didn’t know it was over £36,000. Seeing those numbers in a spreadsheet was the jolt we needed to encourage us to commit to becoming debt free.

When you are aware of the problem and know the exact amount of the debt. The next step is to create a budget. There are many ways to create a budget. My favorite is Zero Budget. Thus, your income minus your expenses equals zero. You need to know exactly how much money is coming in and out of your account each month in different budget categories to avoid letting money slip through your fingers.

How To Get Out Of Debt Fast

If you don’t have a budget and don’t know where to start. However, I recommend you download my free zero-based budget template if you need more help. Please sign up for personal financial coaching. We’d love to help you determine your budget and make it work for you.

Once you’ve created a budget and have a clear idea of ​​where your money is going, the next step is to find ways to improve your spending. Review all your spending categories and find ways to save money in each category.

Some categories have been corrected. Therefore, we cannot reduce the workforce, but there are other costs. it’s very variable AND with a little lifestyle change you’ll be able to cut those costs and free up money to pay off your debts.

For example, when we first create a budget. and I started looking for ways to cut costs One of the categories where we can save a lot is our grocery budget. I switched from online food shopping at Tesco to shopping at Aldi and markets and managed to reduce my food spend from £300 a month to £200. Another way to save money is to cancel your monthly subscription. And set a limited allowance for fun money.

Debt Consolidation: How To Get Out Of Debt Fast

Reducing these costs is our budget. This means we have more money left over to pay off debt each month.

Once you’ve cut your expenses as much as possible, calculate exactly how much debt you can currently pay off each month. Then find a debt-free date.

For example, if your total debt is £10,000 and you can add up to £175 to your monthly debt budget. You can calculate your potential debt-free date:

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

Simple Plan To Pay Off Debt

If you’re prepared to take almost 5 years to pay off your £10,000 debt, you don’t even need to take this step. However, if you want to get out of debt faster, you’ll need to find ways to increase your income.

One thing I do when we are seriously trying to pay off debt is rush. I sold things from my home that we no longer used. I do hair for my friends and family. The husband works overtime and is engaged in personal work. Use your creativity and come up with different ways. To create extra income, any extra money you earn goes straight into debt.

Whether it’s freelancing, overtime, sales or even survey sites. Find ways to earn extra money to pay off debt.

It can be tempting when you start seeing that extra income to want to spend it, but don’t. Discipline yourself to use the extra money you earn directly to pay down debt. You will see the amount of your debt quickly decrease.

Proven Techniques To Get Out Of Debt Fast

It is because of our inability to practice delayed gratification that we ended up with so much debt, ultimately living below our means. Whatever you want to buy, you should not buy it impulsively. Take time to think about your purchase before you make it. Learn how to save money on the things you want to buy. Instead, buy now and deal with the consequences of impulse purchases later. Take the time to understand the difference between what you actually need. with what you just bought at that moment because you feel you have the money to do so.

When I was little, my mother always said, “Don’t be too free. Not everywhere they tell you to go, you have to go. » When I was a child, I thought she was the deadliest person. and I didn’t want to have fun and enjoy life. But now I clearly understand what she meant. Now that makes a lot of sense to me.

“It’s important to know how to say no.” You are not invited everywhere. If this money is not in your budget and you have not planned and allocated this money. Don’t do that. Don’t let others plan your money and don’t feel obligated to spend money you don’t use. Count the costs before making any financial commitments. Focus on your debt-free goal. And don’t let someone else plan your money. block the road.

I’m not saying don’t enjoy life. But not at the expense of achieving debt relief goals. If it’s not in your budget, decline and move on.

Get Out Of Debt Fast, Avoid Scams And Increase Your Credit Score!: Pay Off Your Credit Cards In As Little As 18 Months While Learning To Improve Your Money Management Skills By

Whatever money you have, save it. Or, if you’re trying to stay debt-free, any money you save goes toward paying down your debt. For example, let’s say you’re coming home from work and you’re about to go to the store to buy a magazine. But at the last minute you change your mind and don’t buy it. The money you would have used to buy the magazine will be used to pay off your debts. Either way, you’ll walk away penniless. So use it to pay off your debt instead.

Here are seven things we did on our debt-free journey. This helped us become debt free in two years. I hope you find it useful and that it also helps you in your financial journey.

If you are traveling debt free What help have you tried to help along the way?

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

Ways To Get Out Of Debt Fast

Financial Coach and Content Creator Passionate about helping women break through the pay cycle and achieve their financial goals through the power of purposeful budgeting. Savings and Investments Side Hustle Included When I’m not talking about money, you’ll find me spending time with my 3 rambunctious sons.

Tolu Frimpong does not provide financial advice. All information contained on this website is for educational and reference purposes only. Use of this site is at your own risk. You should do your own research and get specific professional financial advice. The jobs that appear on this site come from companies that receive remuneration. This disclaimer may affect how and where products are displayed on this site (including, for example, the order in which they are displayed), excluding companies or offers available on the Steps site.

Pay off your debts and if you intend to, you will be debt free faster.

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