How to Start When Wanting to Pay off Debt


If you are in debt and you feel like you want to start paying it back then you may feel rather daunted by the challenge of it all. However, once you get started you should find that it will be a lot easier to know what to do. It is good to take some starting steps:

– Add up debt – you will need to start by finding out all of your statements so that you can add up how much debt you have. This is by far the hardest part of this but you need to do it. Look at all the different places that you owe money, such as for overdrafts, credit cards, loans and things like that. Then add up how much you owe in total. This can be very daunting but it is a really worthwhile step. Once you acknowledge your debt then you can move forward in trying to eliminate it.

– Look at interest rates and amount owed – now you need to look at each individual piece of debt. See how much each is for as well as how much the interest is on each one. If you are not sure of the current interest rates then you can get in touch with the lender and ask them. They should easily be able to let you know. Also consider any fees or charges that you pay in addition to the interest.

– Choose which debt to pay off – it can be much easier to pay the loans back one at a time. It is therefore worth deciding which you want to pay off first. It makes sense to pay the one with the highest interest rate off first because it is the most expensive. However, you may prefer to pay the smaller one off first as it will be gone quickly and that will feel more satisfying. There may also be personal reasons for wanting to repay certain debts over others and so it is worth thinking about the order you would like to pay them off.

– Cut up credit card – if you have credit card debt, then it is worth making sure that you do not spend any more money on your credit card if you can help it. It could be a good idea to cut it up, but if this is too difficult then at least remove it from your purse. You want to pay off the money owed on it before you use it again. If you are worried about buying things online without the payments being secure then set up a Paypal account as that is even more secure than a credit card and you can pay things directly from your bank account using it.

– Look at places to cut spending – it is really wise to think about where you can cut your spending. You may find this quite easy as you may see lots of things that you buy that you can do without until you have paid off your debt. However, for some people this will not be easy. Make sure that you concentrate on paying for the necessary things such as food, bills, rent etc and try not to spend on luxury items such as books, accessories, candles, cushions and things like that. Ask yourself before you buy anything whether you really need it and whether you need it right away or if you can wait and buy it once the debt is gone.

– See if you can earn more – it can also be a good idea to make sure that you look into ways that you might be able to earn more money. If you are having difficulty cutting down spending this can be a way that you will be able to repay debt still. You could also use it as a way to repay even larger quantities of debt on top of the money you can use form reducing your spending.

Once you have worked through these steps you should be in a position where you will be able to repay some of your debt each month. It may take time to pay off the first debt, but once you have done this you will have more money to pay the second as you will not be paying interest on that original debt any more. It can be very satisfying knowing that you are repaying your debts but you will need to keep focussing on it and remembering why you are working so hard and how great it will be when you are done.

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Tips on Sticking to a Budget


It is all very well setting a budget for yourself to make sure that you do not spend too much each month, but sticking to it can be difficult. Below are some tips that you might find will help you to stick to it more easily.

– Write down your goal – it is so important to make sure that your write down your goal. This is not just how much you are spending each month to stick to your budget but the reason that you are budgeting in the first place. It might be that you are saving up for something, paying off debt or just working on making ends meet each month. Make a note of why you are budgeting and what your budget is and stick it somewhere that you can read each day. It might be on a mirror, on a computer monitor, a fridge or whatever. Make an effort to ensure that you read it every day so that you keep reminding yourself or the motivation behind your decision. This will help you when you feel that things are getting tricky and it will also just remind you each day to be careful with how much you are spending.

– Check all prices – before you buy anything check the price to see whether you are paying more than necessary. You may find that if you compare prices, there will be an alternative product that is a bit cheaper. It is good to take a look as you could save some money and therefore more easily stick to your budget.

– Check bank balance frequently – it is really important to keep checking how much money you have so that you are sure you are working things out correctly. You may have calculated how much you can spend each month and be sticking to that, but you might have unexpected payments coming out of the bank account or things might be more expensive than you thought. Therefore make sure that you keep checking so that you are aware of what is going on and that you are not accidently spending money that you do not have.

– Keep a note of your spending – it is important to make sure that you note down everything that you buy and how much it cost. This will help you to remember what you have spent but will also be an interesting record. If you are finding it hard to stick to the budget, you can look through the things that you have been buying and see whether there is anything that you can cut down on in the future that could help you to more easily stick to your budget.

– Be careful of credit card spending – be wary of spending on credit cards and no credit check loans because it will be harder to keep track of. If you are checking your bank balance it will not show up in there so make sure that you check the credit card balance as well. Payments on credit cards do not happen right away so you will have to allow for this and make sure you budget for when the bill is due, so that you have enough money left form your budget to pay it. Then you will be sure not to miss any spending that you are doing. Of course, writing it down should avoid any confusion but it is still wise to keep a careful check on everything just in case.

– Find free/cheap ways to treat yourself – it can feel rather a chore to always watch you are spending and only buy things which you really need. You might feel deprived and so it can be a good idea to think about ways that you can treat yourself which cost very little money or are free. Some people will enjoy a relaxing bath or a quiet evening at home. Others might like to go out, but you could just go for a walk, take a picnic or go to a free site to explore. If you want some fun with your friends suggest you go to someone’s house and all take a booze or food donation and it will be a lot cheaper than going out.

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