Imagine life with no debt, just how much easier and less stressful it would be! For most people though debt repayments are bread and butter, whether they are paying off a home loan, car loan or a credit card. And while removing debt out of your life completely might seem highly unlikely (ok, not that many people can afford paying for a house just with their savings), there are ways how you can hugely reduce your debts and gain more control over them. Here is how:
- Buy only what you can afford. Try limiting the use of credit cards and use only your current account/cash that you currently have.
- Create a habit of saving. You can start small, put aside whatever you can afford, but make sure you do it regularly. Sooner or later, it will become a habit.
- Be patient. When you need to make a larger purchase, or get something expensive keep saving for it patiently over a period of time. Even if you still must take a loan to pay for it, making sure that you have as much cash as possible for the down payment allows you to pay your loan off quicker and means paying less interest.
- Prepare your personal budget, and monitor your income and expenses closely.
- Avoid impulse buying, think twice before you buy something and do your research. The same item might be less expensive when you buy it online, for example. Don’t discard the idea of getting pre-loved items.
- Be prepared to make some sacrifices. If paying for a dinner out would mean going into overdraft on your account this month, skip it and opt for a home cooked meal.
- Last, but definitely not least, insure yourself and your family. It will give you peace of mind that in case of unexpected events like serious illness, house break-in or death you or your family will not run into debt.
If you’re looking for health, household or funeral cover we can help you find the best deal.
We encourage you to take more control of your finances, and especially of your debt to enjoy a fuller, less stressful life. Yet, if you are struggling with debt and need professional advice simply fill in your details on our website and we will get a qualified Debt Management counselor to assist you.