Have you been struggling with debt lately? If so, you’re not alone. Consumer debt in the second quarter of 2019 was $14 trillion and home, auto, credit card, and student loan debt just continue to grow.
So what can you do in this situation? Is everything hopeless? Not necessarily – there are ways to get out of debt, but they’re definitely is no quick and easy solution. It will take lots of work, time, and dedication, and also require you to be creative about the ways you spend and make money.
Here are some tips that will help you recover your financial situation.
Make Extra Cash
Sometimes it’s helpful to make one large payment towards your debt in order to reduce the interest. One of the ways you can do this is by finding some ways to make extra cash.
A fast and easy way to do this is to sell items around the home that you no longer use or need. For example, do you have any gold jewellery or coins collecting dust somewhere? If you look at the live gold prices you will see that they are relatively high right now, so it’s a good time to sell your gold.
Most gold buyers will buy any kind that you have available: bullion, coins, jewellery, and even scraps. Just make sure you find a reputable buyer first before committing to a sale.
Set a Budget
Making a monthly budget is one of the easiest ways to track and save money. Check out this handy WikiHow guide on how to get one started and stick with it. Basically, what you need to do is find out what your income is and then subtract your necessary deductions like your mortgage/rent and utilities.
After that, you will know how much money you are actually making and will be able to determine how much of that you can spend each month. While planning this out, it’s important to set aside some money to put towards paying off your debt.
One of the benefits of creating a monthly budget is that you can see where you’re spending too much and where you need to cut back. Do you have any subscriptions that you can live without? For example, do you really need that streaming service?
Also, do you find yourself eating out or ordering in too much? Food and beverages are one of the biggest culprits when it comes to monthly spending. Instead, you should look into buying your own groceries, making your own meals, and also brewing your own coffee at home.
Look Out for Deals
If you’re going to spend less then you’re going to need to keep an eye out on local deals and coupons that you can use towards groceries and other necessities. Thankfully, couponing is much easier to do nowadays thanks to couponing apps that you can access via your smartphone.
Be Money Smart
While these tips will help you, it’s important to realize that being knowledgeable about your money and finances is one of the most powerful tools you can use to get yourself out of debt. Keep on top of it and you should see improvements in no time.