Need To Get Out Of Debt Fast

Need To Get Out Of Debt Fast – 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 over two years.

According to a report by the Trades Union Congress (TUC), the average UK household debt is £15,385 excluding mortgages. This report was made in 2018, and I predict this number will be in 2020. today and even higher in 2020.

Need To Get Out Of Debt Fast

With over 8.3 million people in debt in the UK, it has never been more important to talk about money and offer solutions to help people get out of debt.

Guide To Getting Out Of Debt Fast

So in this blog I will share seven things my husband and I did to pay off more than £36,000 in debt in two years. It wasn’t easy and it definitely took a lot of blood, sweat and tears. But if you want to do it, you too can achieve debt freedom and achieve your financial goals for the future.

When we were tired of going into debt, going out of debt, and even not being able to pay off our debt, we finally had to admit that we had a problem. We have dug a deep hole and it is our job to get out of it. Deal with your debt, stop running and hiding from your situation. Don’t bury yourself in the sand. Make a list of your various debts and calculate the total amount.

The move was very difficult for us, we knew we had a lot of debt, but we didn’t know it would cost more than £36,000. Seeing these numbers in a spreadsheet was shocking enough to encourage us to stay out of debt.

Once you accept the problem and know how much debt you have, the next step is to create a budget. There are many different ways to create a budget. My favorite is zero-based budgeting. This method means that your income minus your expenses is zero. You need to know exactly how much money is going in and out of your account every month in different sections of your budget, this stops money slipping through your fingers.

How To Get Out Of Debt Fast

If you don’t have a budget and don’t know where to start with a budget, I recommend you download my free zero-based budget template. However, if you need more help, call Financial Coaching and I’ll be happy to help you get your budget up and running for you.

Once you have created your budget and have a clear picture of where all your money is going, the next step is to find ways to manage your spending. Analyze all your financial categories and find ways to save in each category.

There are parts that you can do nothing to reduce. However, there are some contracts that vary considerably and with some lifestyle changes, you can reduce them and free money to pay the loan.

For example, when we started budgeting and looking for ways to reduce our expenses, one of the areas where we saved the most was the grocery budget. I switched from buying groceries at Tesco, to shopping at Aldi and at the market and was able to reduce my food consumption from $300 to $200 per month. Other ways to save money are canceling some monthly subscriptions and giving yourself less money for fun money.

Simple Plan To Pay Off Debt

Making these investments is our budget, which leaves us with more money left over to pay off our debt each month.

Once you’ve cut your expenses as much as possible, figure out how much you can afford to pay off your debt each month, and then set a date when you’ll be debt free.

For example, if your total debt is £10,000 and you can free up £175 from your budget each month to pay off your debt, you can calculate the day you will be debt free:

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

Get Out Of Debt Fast With These 6 Quick Tips

If you’re going to take five years to pay off your £10,000 loan, you don’t even need to take this step. However, if you want to get rid of debt quickly, you will need to find ways to increase your income.

Another thing I do when I’m desperately trying to pay off debt is a side hustle. I sell household items that we no longer use. I did hair for friends and family, and my husband worked overtime at work and did his own work. Be creative and think of different ways to make extra money. Any extra money you have goes towards the loan.

Whether it’s freelancing, extra work, selling articles, or even reviewing sites, find ways to make extra money to pay off your debt.

When you start seeing extra money, you will want to use it, but don’t. Discipline yourself to put more money into a direct loan, and you will see the amount you owe go down quickly.

The Get Out Of Debt Checklist

By not learning to meet the delay, we got into a lot of debt in the first place. This, and he did not live under our money. Not everything you want to buy must be shopping. Take some time to think about it before you buy. Instead of buying now and facing the consequences of an impulsive purchase later, learn to save the things you want to buy. Take the time to understand the difference between what you really want and what you are buying now because you feel like you have the money.

When I was young, my mother always said: “Don’t be lazy, don’t go everywhere, you’re here.” As a child I thought it was the greatest happiness and I did not want to enjoy my life. But now I really understand what he meant, which is important to me now.

“Knowing when to say ‘no’ is important. It’s not everywhere you’ve been called to go. If it’s not in your budget and you haven’t planned and made allowances to spend that money, then don’t do it. Don’t let others manage your finances or feel pressured to spend money you don’t make.Calculate the cost before making a financial agreement.Focus on your debt free goals and don’t let anyone fool you.

I’m not saying don’t enjoy your life, do it. But not at the expense of achieving your debt-free goals. If it’s not in your budget, say no and keep moving.

How To Get Out Of Credit Card Debt

If you have money, save it. Or, if you’re trying to be debt-free, use the money you save to pay off your debt. For example, let’s say you were coming home from work and you were going to the store to buy a magazine, but at the last minute you changed your mind and stopped buying it. The money you use to buy the magazine goes towards paying off the loan. You’re going to run out of money anyway, so use it to pay off your debt.

Here are seven things we did on our debt-free journey that helped us become debt-free in two years. I hope you find them useful and that they help you on your financial journey as well.

If you are now on your debt free journey, what else have you tried to help you?

If you liked this post, ‘7 Ways to Get Out of Debt Fast’, you may also like my other blog post on similar topics. See below:

Ways To Stay Motivated While Paying Off Debt

A Financial Coach and Content Creator, she is passionate about helping women break income and achieve their financial goals through intentional budgeting, saving and investing, and side hustles. When I’m not talking about money you can find me spending time with my three children.

Tolu Frimpong does not provide financial advice. All information on this website is for educational and reference purposes only. Use of this site is at your own risk. You should always do your research and seek professional financial advice. The offers that appear on this site come from paid companies. This fee may affect how and where products are displayed on this site (including, for example, orders displayed). It does not include all companies or all offers available on the market.

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