Many of us are in debt today, and the trouble with being in debt is that there is no easy way to get clear of it. But it doesn’t mean that you should just give in to the debt and let yourself go under. If you’re prepared to work at it, you can gradually free yourself of debt and get back to being in credit.
The most important thing to remember is that you can become debt free as long as you earn more than you spend. The first thing you need to do is admit that you are struggling with debt. It’s easy to push it out of mind and carry on using credit while you still can, but this just makes the debt increase over time.
If you have a friend or family member who manages their finances well, ask them for some debt advice. They may not have been in debt themselves, but they can help you on the most effective way to budget. Going through your income and expenditure with someone else can help you see where you might be going wrong. Lots of people could rein in their spending by just a small amount in order to be in surplus rather than deficit every month. But spending just a little too much each month will have a hugely negative effect as the interest payments and debts multiply.
As well as living within your means, you also need to look out for the best available deals on all outgoings including which supermarket you shop at, utilities and insurance bills. You can shop around to make sure you are getting the best available mortgage rates as well.
You can also seek expert debt advice from objective sources like the Citizen’s Advice Bureau and debt management companies or counsellors. Together with an adviser you can devise a debt management plan to gradually move you from being in the red to back into the black.
As a last resort, you may need to set up an Individual Voluntary Arrangement or declare bankruptcy. Neither of these options should be taken lightly – so make sure you get sound independent advice before doing either of these.
You may feel out of your depth because of the debt that you are in, but if you get expert help, you can gradually work your way out of debt.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.