Having the weight of debt sitting on your shoulders isn't a nice feeling, and often people continue to bury their heads in the sand as they don't want to face how much money they owe.
Here are some tips to get you started with paying back your debts. Quite often it's not an overnight fix, and will take time. But you're doing the right thing as soon as you start paying your debt off!
Find out how much you owe and who to
If you're in debt with just a few companies, you may be able to remember or easily find out who you owe money to and how much. If so, write down this information.
If you can't remember who you owe money to, you may need to do a Credit Check. This will tell you your credit score - as well as telling you who you're in debt with.
Get yourself a budget
Now you know what you owe, you can start to work out how you're going to pay it back and how much at a time. Start off by writing your typical monthly expenses, and see if there is anything you could live without until your debt is paid off (gym memberships etc.). See how much money you have left at the end to pay off your debts.
See my post on how to make a serious budget here
Start off small
To help keep you motivated in paying off your debts, Start by paying your smaller debts first. These will be easier to pay off so then you can focus on your bigger sums of money owed.
If any of your debts are high interest, and you're constantly accruing interest on your already borrowed money - this needs paying off as a priority as your debt is currently increasing each month.
Pay more than the minimumIf you can afford to, pay more than your minimum payment. Obviously this step wont apply to everyone, but if you're fortunate enough to be able to add more money to each payment then do it. It'll allow you to reach your goal quicker, and you may save money in the long run as you won't be accruing interest!
Automate your payments
Most companies and banks allow you to automate your payments. If not, set a reminder on your phone every payday to remember to send the money over! The good thing about automated payments is you can't make excuses to not pay your debts, as the money is going to come out of your account regardless!
Put any bonuses & gifts towards your debtAny free money you may be getting should be used to pay off your debt. You weren't expecting to get given the money, so you can probably live without it in your day to day life! Resist the urge to splurge it on something you don't need and use it to pay off your debt and reach your goals faster.
Reach out for help
This is a tricky one, and one many people won't like to admit they need. Help. Don't get yourself another loan or credit card to pay off debt, as that just continues the vicious cycle. If you contact the companies which you're in debt to, and tell them you're struggling they may help you. They don't have to help you, so don't be surprised if they don't - but some may! They could reduce your interest rates or point you in the direction of speaking to someone if your debts are getting on top of you.
Reward yourself
Make sure you check in with yourself once in a while, and make sure you're ok. It can be tiring and stressful being on a tight budget when pay off debt, so make sure when you have some extra money you treat yourself to a meal out or a new pair of jeans.
Do you have any more advice for paying off your debts?
Having the weight of debt sitting on your shoulders isn't a nice feeling, and often people continue to bury their heads in the sand as they don't want to face how much money they owe.Here are some tips to get you started with paying back your debts. Quite often it's not an overnight fix, and will take time. But you're doing the right thing as soon as you start paying your debt off!
Find out how much you owe and who to
If you're in debt with just a few companies, you may be able to remember or easily find out who you owe money to and how much. If so, write down this information.
If you can't remember who you owe money to, you may need to do a Credit Check. This will tell you your credit score - as well as telling you who you're in debt with.
Get yourself a budget
Now you know what you owe, you can start to work out how you're going to pay it back and how much at a time. Start off by writing your typical monthly expenses, and see if there is anything you could live without until your debt is paid off (gym memberships etc.). See how much money you have left at the end to pay off your debts.
See my post on how to make a serious budget here
Start off small
To help keep you motivated in paying off your debts, Start by paying your smaller debts first. These will be easier to pay off so then you can focus on your bigger sums of money owed.
If any of your debts are high interest, and you're constantly accruing interest on your already borrowed money - this needs paying off as a priority as your debt is currently increasing each month.
Pay more than the minimumIf you can afford to, pay more than your minimum payment. Obviously this step wont apply to everyone, but if you're fortunate enough to be able to add more money to each payment then do it. It'll allow you to reach your goal quicker, and you may save money in the long run as you won't be accruing interest!
Automate your payments
Most companies and banks allow you to automate your payments. If not, set a reminder on your phone every payday to remember to send the money over! The good thing about automated payments is you can't make excuses to not pay your debts, as the money is going to come out of your account regardless!
Put any bonuses & gifts towards your debtAny free money you may be getting should be used to pay off your debt. You weren't expecting to get given the money, so you can probably live without it in your day to day life! Resist the urge to splurge it on something you don't need and use it to pay off your debt and reach your goals faster.
Reach out for help
This is a tricky one, and one many people won't like to admit they need. Help. Don't get yourself another loan or credit card to pay off debt, as that just continues the vicious cycle. If you contact the companies which you're in debt to, and tell them you're struggling they may help you. They don't have to help you, so don't be surprised if they don't - but some may! They could reduce your interest rates or point you in the direction of speaking to someone if your debts are getting on top of you.
Reward yourself
Make sure you check in with yourself once in a while, and make sure you're ok. It can be tiring and stressful being on a tight budget when pay off debt, so make sure when you have some extra money you treat yourself to a meal out or a new pair of jeans.
Do you have any more advice for paying off your debts?
Here are some tips to get you started with paying back your debts. Quite often it's not an overnight fix, and will take time. But you're doing the right thing as soon as you start paying your debt off!
Find out how much you owe and who to
If you're in debt with just a few companies, you may be able to remember or easily find out who you owe money to and how much. If so, write down this information.
If you can't remember who you owe money to, you may need to do a Credit Check. This will tell you your credit score - as well as telling you who you're in debt with.
Get yourself a budget
Now you know what you owe, you can start to work out how you're going to pay it back and how much at a time. Start off by writing your typical monthly expenses, and see if there is anything you could live without until your debt is paid off (gym memberships etc.). See how much money you have left at the end to pay off your debts.
See my post on how to make a serious budget here
Start off small
To help keep you motivated in paying off your debts, Start by paying your smaller debts first. These will be easier to pay off so then you can focus on your bigger sums of money owed.
If any of your debts are high interest, and you're constantly accruing interest on your already borrowed money - this needs paying off as a priority as your debt is currently increasing each month.
Pay more than the minimumIf you can afford to, pay more than your minimum payment. Obviously this step wont apply to everyone, but if you're fortunate enough to be able to add more money to each payment then do it. It'll allow you to reach your goal quicker, and you may save money in the long run as you won't be accruing interest!
Automate your payments
Most companies and banks allow you to automate your payments. If not, set a reminder on your phone every payday to remember to send the money over! The good thing about automated payments is you can't make excuses to not pay your debts, as the money is going to come out of your account regardless!
Put any bonuses & gifts towards your debtAny free money you may be getting should be used to pay off your debt. You weren't expecting to get given the money, so you can probably live without it in your day to day life! Resist the urge to splurge it on something you don't need and use it to pay off your debt and reach your goals faster.
Reach out for help
This is a tricky one, and one many people won't like to admit they need. Help. Don't get yourself another loan or credit card to pay off debt, as that just continues the vicious cycle. If you contact the companies which you're in debt to, and tell them you're struggling they may help you. They don't have to help you, so don't be surprised if they don't - but some may! They could reduce your interest rates or point you in the direction of speaking to someone if your debts are getting on top of you.
Reward yourself
Make sure you check in with yourself once in a while, and make sure you're ok. It can be tiring and stressful being on a tight budget when pay off debt, so make sure when you have some extra money you treat yourself to a meal out or a new pair of jeans.
Do you have any more advice for paying off your debts?
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