Three top tips – getting out of debt

Getting out of debt can be easier said than done. There are ways how you can make it easier.

10:19 20 February 2014

Getting into debt is uncomplicated. You need a home, a car; you get hold of credit cards and use them to make purchases that you cannot afford to pay for right away. The next thing you know is you are up to your neck in bills and do not have a way out. 

 

Here are some useful tips to help you get control of your finances and pay down your debt. 

 

• Use Cash – Put your credit cards away for a while. Use only the cash you have to make purchases. The first step is to create a budget; once you have a budget then you will know how much cash is left over each month. If you need new clothing, you may need to save for several months to pay for the outfit or you may have to purchase one piece instead of several. The benefit is that you are not creating additional debt. This means that they are easier to pay.

 

• Create a list when you go shopping and stick to it. You can lose hundreds of pounds a year on extras you purchase because you shop outside the list. This works for anything, household supplies, office supplies, clothing, or groceries. Take a look at what you actually need and then stick to that list. It will help you direct that extra money to paying off your debt.

 

• Say no to more credit – One of the biggest difficulties people have when they get into debt is saying no when people offer them credit. It is great to have lots of credit but when you are trying to get out of debt, it can create more problems by providing you with temptation. 

 

These simple tips can help you get out of debt faster.