Having debt is a responsibility that is ongoing until that debt or multiple debts have been repaid in full. Having more debt than you or your finances can handle can be crippling on a number of levels, including financially and psychologically. It can place an enormous amount of pressure on the person who has incurred the debt, as well as those people closest to them.
With this in mind, what can you do to make life easier and what options are available to you to enable you to crawl out from under that mounting pile of debt? Let’s look at some options in this article.
Strive To Repay Your Debts Sooner
No matter what type of debt you have, one way to relieve the pressure is to make a point of repaying those debts sooner rather than later. This is provided you have the financial means to do so. Even if you currently don’t, is it possible for you to find extra work, where you can put all of the money you earn towards loan and debt repayment until you’ve gotten on top of them? This extra workload doesn’t have to be permanent, just temporary until you’ve regained control of your financial situation.
Just getting the total amount of your debts reduced will make a massive difference and it will relieve the psychological pressure as well.
Focus On Credit Card Debt First
If you have a variety of debts, for example, a Personal Loan along with multiple credit cards, focus first on repaying that credit card debt. Chances are, the interest rate you’re paying on your credit card is going to be higher than that of the Personal Loan. Therefore, it makes more logical and financial sense to get rid of that credit card debt as the number one priority.
The other thing to keep in mind is that a Personal Loan will have an end date, whereas the debt incurred on a credit card will be ongoing indefinitely if you only ever pay the minimum monthly repayment amount.
If you have more than one credit card with an outstanding balance, this can be a real drain on your monthly finances. Once you have managed to repay a credit card in full, either refrain from using it again unless you really have to, or cancel the card completely so you can no longer rack up debt on it.
Apply for a Personal Loan for Debt Consolidation
It may sound counter-intuitive to take out a loan to reduce your debt situation but the best way to consolidate debt can be with a Debt Consolidation Loan. You’ve probably heard about debt consolidation but how does it work exactly and how is it of benefit?
Firstly, you’ll be seeking a Debt Consolidation Loan that offers a lower rate of interest than what you’re currently paying on credit card debt and so on. You also want to note things like loan establishment fees and other ongoing account keeping costs. Let’s now look at how debt consolidation helps to improve your financial wellbeing.
If you have two or more debts, that’s a number of repayments that you have to manage and remember to pay each month. Once you’ve rolled your debts over into a Debt Consolidation Loan, you’ll only have one repayment amount to think about. This means there will be less chance you’ll forget to pay something or that you’re late with the repayment.
If you’re smart about the Debt Consolidation Loan you choose, you’ll end up reducing the amount of debt you have to pay back overall. This will free you up financially and take some of the pressure off.
Once debt consolidation has been finalised, there’s also a very good chance that the monthly amount you need to repay will be lower than the total of monthly repayments you previously had to come up with. Once again, this frees up your finances and releases that pressure valve.
Talk To Cashify About Consolidating Your Debt
Cashify has been helping numerous Aussies with debt consolidation, so get in touch with us today and learn how we can help you get on top of your finances. We can tailor a debt consolidation loan to suit you.
Disclaimer: Please note this content is of general nature only and does not take into account your personal objectives, financial situations or needs. For advice tailored to your financial situation, it is advised that you seek guidance from an accountant or financial advisor. The information contained in this article is correct at the date of publication.