Being in debt can be stressful, but unless you take steps to manage that debt the situation will only get worse. Taking positive steps towards managing your debt will allow you take back control of your finances and say goodbye to debt for good.
Following these 5 steps will get you on the path to being debt-free:
1. Know how much you owe
Make a list of your debts, including total amount of debt, monthly repayments and due date. This will give you a clear picture of your current situation.
2. Understand your spending patterns
Use a spreadsheet or a smart phone app to track your daily spending. Record everything you purchase in a day. After a few weeks you should have a detailed record of your daily spending, from which you will be able to determine where your money is going.
3. Make a plan to repay debt
Now that you know how much you owe and how much you are spending, you can use that information to make a debt repayment plan. Work out how much you can afford to pay on regular basis for each debt. This may require modifying your spending habits.
4. Change your behaviour
Changing your behaviour is key to dealing with debt. It requires commitment but can be achieved. Take a close look at your daily spending pattern and identify opportunities to make changes. For example, if you have identified you are spending $20 a day on lunch and coffee, you could consider taking your lunch to work instead. Simple changes can make a big difference.
5. Get help
If you are struggling to deal with your debt alone there are several charities that offer free, confidential financial advice such as Anglicare and Wesley Mission. It can also pay to seek the advice of a financial planner, who can offer advice and options on managing your debt.
Do you need help dealing with debt? Contact us at Hunter Lending Solutions to arrange a confidential chat.