How to Eliminate Debts ASAP!
No one likes to be stuck in debts, but some unwise spending habits and bad choices often land us in sticky situations. There is no shortcut in this case – it will take some time, but you have to resort to adequate measures so as to become debt-free within a relatively short span of time.
Here are a few helpful tips for getting out of debt:
Boost your credit profile
Most of us own credit cards these days – the trick lies in managing them properly. There is no point in flashing cards from 10 different institutions if you don’t know how to make your profile credit-worthy. Use them as sparingly as possibly and adhere to the terms of the payment agreements. Some companies can alter billing cycles – talk to them and find out.
Set up a direct debit
Quite a few utility companies request payment via direct debit, so if you didn’t have one before, it is not too late to set up one now. If you are lucky, the company might offer some discount for people who use direct debit to pay them. The discount might seem trivial in the beginning but will help to save a decent sum in the long run.
Think through your purchases
How can you stop debts from piling up? Simple – curb your spending habits. Impulsive buying can be one of your worst enemies if you are knee-deep in debt as it worsens the situation. Jot down a list of items you need for your house before leaving – try to ignore “buy one get one” and similar offers, since they tend to make you purchase items in bulk that are not required.
Reduce your debts
“Where did all my money go?” – An easy question with a complicated answer. The time has come to pay up, but you lack the funds to do so. In order to prevent such situations from happening, budget your income. Take the help of technology – create spreadsheets for computing your income and expenditures. If you notice the latter exceeding, you have to identify the problem areas such as shopping, going out for drinks with friends, eating out, using the car way too often etc. and put a restriction of those. This will help you make payments on time and your credit rating will improve as well.
Eliminating debts requires strategic thinking and planning – this calculator helps you to do so. Once you have the data and figures, it will help you plan ahead for debt-free future.