If you want to get out of debt quickly and efficiently then you need to have a plan that you can execute properly. When you do have a solid plan, you can then move forward to moving on from any debt that you have while also being given the chance to start living your life again.
The main thing that you have to remember here is that when you are trying to create a debt management plan, you have to tweak and adjust it along the way so that it meets the requirements of your lifestyle. The last thing you’ll want is to slide back into debt because you are following the same budgeting plan even though you have had a wage drop or even a job loss.
Ways to Get Out of Debt
When the time does come for you to create a debt plan, you need to make sure that you do it right.
You have to know where you stand before you start and you need to have a good idea of the bigger picture.
You can do this by gathering a bunch of your recent statements for your bank loans and credit cards, so you can find out how much you owe, to what companies. It also helps to find out the interest rate you owe at this point as well. If you can’t access these statements or if you are struggling to find out where you stand with your debt then one way for you to do this would be for you to get a free credit report. You can easily see the debt that you owe when you do this and you can also find out if there is anything that you can do to try and get the best result out of your debt in general. If you need data on your student loan debt then it is very easy for you to get this information, as all you have to do is log in to the database to find out everything you need to know.
Make a List
It helps to get a list of everything you need and this includes the data on your debt. You then need to write out how much you have to pay for that debt in order to get everything cleared completely. It helps to develop a three-year plan in this instance but when you are doing this, don’t include family loans. When you have done all of this, it’s time to focus on lowering your rates. There is a high chance that you will qualify for a much lower interest rate on your credit card and there are plenty of sites that you can use to see what exactly you are able to sign up for as well.
This makes the whole thing much easier when it comes to planning out your debt and it also makes it easier for you to keep your credit rating high as well. If you went and applied for a lot of low-interest cards in very close succession then this would essentially harm your rating and it would put you in an even worse situation than you are in now.
For that reason, it helps to use sites or even apps that show you how likely you are to get a card based on your income and previous credit history.
Set up a Plan
When you have found out how much you owe and how much you need to pay off in order to clear your debt in 3 years, you can then move on to creating a solid plan. There are plenty of companies who can help you in developing a debt relief plan and their services can even help you to get your debt reduced as well, something that you can’t possibly hope to do on your own. You can even talk to a credit counsellor about your debt if you feel as though this would help.
When creating your plan, it helps to set up auto pay on any direct debits that you owe and this is especially the case when it comes to your high-interest cards. If you can’t afford to do this, then try and pay as much as you possibly can towards that amount, and budget your lifestyle accordingly.
It really helps to transfer your existing debt to a lower interest card.
In this instance as this will really help you to manage your debt and it will also help you to keep the amount you owe in mind as well. If you are concerned about the amount you owe, a professional debt management plan can help you here.