5 Steps to get out of debt

Many people are getting into debt and many do not know how to get out of it. It is estimated that debt is costing the UK economy £8.3bn. If you have been in debt and have managed to come out of your debt problems, you can testify that it gives you peace of mind. As soon as you tackle your debts you’ll sleep better, feel more relaxed and be happier.

Use these 5 steps to get you closer to getting out of debt if not completely:

1)    Find out why?

If you don’t find out why you’re in debt, you’ll never know where to start from. Question yourself to find out what is getting you into debt; is it the inability to resist getting a payday loan or maybe your monthly outgoings are much higher than your incomings. Once you find out the driving force of your debt you can now take steps to changing it.

2)    List your income and expenses

To make improvements, we first need to know where we currently are. Write out a list of all your streams of income against all your outgoings and it will show you have much money you have left to pay off your debts each month or what you may need to cut down on to start saving money.

budget

3)    Do I need or do I want?

It’s really easy to get carried away at times when we are out. The temptation to buy the things we want will always exist but we need to know what category the item falls under, the ‘need’ section or the ‘want’ section. Taking a packed lunch into work instead of eating out each day or if viable, walking/cycling to work instead of catching the bus or using the car could be simple steps you take to making sure your income is much more than your expenses giving you the opportunity to pay off your debts.

4)    Find out what support you can get

There are many types of support you can get if you find yourself in debt. They are there to help so don’t try and fight the battle alone. Satsuma debt support is a useful resource tool you could use for free money advice and support.

5)    Believe you can get out

Without self belief, it’s next to impossible to come out of debt (unless an angel comes your way to wipe your debts) so switch on the positive mindset that you can come out of this situation. The self fulfilling prophecy plays a key part in our behaviour so make sure you don’t confess negative things about yourself, they’re likely to come true.

I hope you’ve found this post useful, you can use some of the steps to save money generally if you’re not in debt or use them to avoid getting into debt. I want to see your comments on more tips you have on this issue.

 

 

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