Living with debt can be a real drain on your emotions. I know first hand – I used to worry about my own debt. It hangs over you like a big black cloud, looming over ever financial decision.
The trouble with debt is that it can be difficult to get out of once you reach a certain point. If your earnings are fixed and you can only afford the suggested minimum payments, it can feel like you’ll never be able to pay off your debt completely. I know that can be a pretty bleak feeling, but there are key factors to look for for ways around it.
Attacking your debt takes planning and persistence. It’s not always a linear path, and can face the odd set back. It’s important not to get disheartened or perceive any deviations from the plan as a failing. Lots of people live with debt and lot’s of people are able to pay it off. Sometimes debts can cause problems with probate after you’re gone, so it’s best to try and get your affairs in order.
Disclaimer: I suggest as a matter of course, if your debt it overwhelming you, seek professional help. Citizen’s Advice is a great place to start.
3 Ways to Attack Your Debt
When it comes to tackling debt, patience is key. You’re bound to come across stories in the media where someone who earns more than you can dream of is featured as an inspirational story. Usually that story will include the person realising they should stop spending hundreds each month on designer shoes and instead use that money to pay off their debt. These stories are not only unrelatable, but also entirely unhelpful.
If you follow a practical plan for paying off your debt, then it will probably take time. Unless some rich relative you didn’t know dies and leaves you a huge inheritance, it’s unlikely there’ll be a solution that disappears your debt over night. Be prepared to make a plan and adapt it as you go.
Keep an eye on your finances
This is the most important piece of advice, especially if your income is fixed. If you have the same amount of money going in every month, it’s important to check you’re getting the best out of it. Chances are, you’ve already made some lifestyle changes – but if not, it’s time to start. Read more about overspending.
The first port of call is the supermarket. Switch up your shop to save money. Downgrade on brands – you don’t need to go for the absolute cheapest option, but going for cheaper than what you usually buy for most products will pay off.
Secondly, keep an eye on your bills. Things like energy prices and broadband packages can sneakily increase when a deal you were on has expired. Check in with those companies every few months to ensure you’re getting the best deal for you. Energy tariffs can be changed, and your energy company is obliged to put you on a better deal if you ask.
More money in your pocket allows you to pay off more of your debt each month.
Get involved with side hustles
This one can be tricky, especially if you’re short on time. If you have a family and work full time, it might already feel like you’re giving all you can. Luckily, side hustles are designed to work alongside your main job and brig in a little extra income. This income can help you pay off chunks of your debt that you wouldn’t normally be able to.
If you don’t want to be involved with doing anything that feels too much like work, survey sites are a great way to earn when you feel like it. My husband will do a quick survey when he’s got a spare five minutes, which tends to equate to about £5-£10 per week, depending on how much time he has.
Don’t Pay Less When the Requested Amount Decreases
This piece of advice is fantastic for those who have a fixed income, can’t reduce their spending and feel like any sort of side hustle would be too much mentally. This involves doing nothing differently.
For example, if you have always paid your suggested enhanced payment (lots of credit cards suggest an amount that’s a little more than your minimum payment, which helps you pay off your debts a little quicker) and it’s sat at around £200, keep paying that £200. What usually happens when you chip away at your debt is that the suggested minimum (or enhanced) payment decreases. Never fall for it.
If you’ve had enough money to be paying a certain amount for the past few months, then keep paying that amount. It’ll help you pay your debt off faster, without taking any more money from your pocket. It’ll still be a lengthy process, as with the other suggestions, but you’ll get there eventually.