Escape Debt If your income doesn’t match your outgoing and you’re struggling to know how to pay off your monthly bills, how do you escape debt?
What can you do if debt consolidation loans or credit cards aren’t a possibility?
Here are a few tips to help get you back on track, to try to avoid a whole load of unnecessary anxiety this brings –
It’s important to try to find a way to put some money aside each month. Maybe try selling on Gumtree or Ebay, look for another job, which could give you just a few extra hours a month, but you could squeeze it in.
The money you can save will help you out if you have an unexpected emergency or an expense you didn’t foresee coming your way.
While you put some money away in your savings account, you keep paying off each balance with the minimum amount you have to pay each month.
You could adopt a really interesting way to approach these minimum payments by using a model called ‘debt snowball’. Add all the totals of what you have to pay each month of all your credit cards. Then add, at least £20 to the amount, if you can do more, fantastic, if it’s less, then that’s ok – just anything you can afford.
Then target the credit card with the least amount owing and keep pushing the amount you can afford into that balance. When balance is completely paid off, then take all the amount you committed to paying off this card into the next credit card with the lowest amount to pay off.