Being in debt can be a highly distressing phenomenon, especially when it feels like there is simply no way to get out of it, leading to a whole host of physical and mental problems.
Nonetheless, if you are reading this article, it’s probably because you have come to terms with the fact that you have a problem. This is a great first step! Read on now for five key tips.
Pay off Smaller Debts First
Debt is as much a mental consideration as a financial one, especially when it feels like a variety of bills and numbers keep looming over you. One way to instantly feel better about the debt that you owe is by paying off the smallest debt first. This is known as the snowball effect, as the interest rates you owe will instantly be lowered by this small gesture, making it easier and easier to then tackle the largest debt owed. Nonetheless, if the money owed back is too burdensome and complicated, then it might make sense for you to:
Take Out a Debt Consolidation Loan
The benefits of loans for debt consolidation, like those offered by OneMain Financial, may include a lower overall interest rate, a reduction in your monthly payment, and only one payment to keep track of. This is much easier than tracking several different debts at once, meaning more peace of mind, thus allowing you to chip away at that one figure.
Get a Second Job
If you are in the position to do so, it might make sense to get a temporary second job until you are out of debt. Whether that’s a side hustle or a part time job, there are plenty of ways to try and make money on top of your original job. Just be wary of working too hard, though, as this can lead to burnout, which may eventually have you unable to do any work whatsoever. When it comes to paying off debt, it’s important to balance your own mental wellness against the figure you are trying to pay back.
Sell Unwanted Possessions
If you have anything in your house or flat that you don’t need, perhaps it makes sense to list it online and see if anybody wants to buy it. You might be surprised by how much people are willing to pay for items that you believe are worthless, giving you a quick cash injection just when you need it.
Ask Friends and Family For Money
It may be hard to mentally prepare yourself for this one, as it will require having to come clean with your friends and family about how you got into debt, but it is a very natural occurrence, with the average American in fact over $90,000 in debt. If you come clean to your loved ones when asking for money, as well as explaining in clear ways the steps you are going to take to pay the money back, then you might be surprised by how generous they are.