January tends to be the time of year that most of us experience debt. This isn’t all too surprising, seeing as we’ve just emerged from the festive season and have likely spent beyond our means for the sake of giving gifts, celebrating, and eating and drinking with family and friends. However, as we step into the new year, the majority of us will want a new start, devoid of debt. Luckily, there are options that will help you to clear your debts in next to no time! Here are just a few ideas to help you along the way.
Get Familiar with your Finances
A surprising amount of people don’t have a clue about their personal financial position. This is shocking considering how easy it now is to check our accounts and balances. Take advantage of the technology available and download online banking apps for your standard accounts and your credit cards. This means that rather than waiting for your statements to be delivered, you can keep an eye on your purchases and payments as and when you please. You will be able to monitor any money coming into your account, as well as making changes to your direct debits. You can then arrange for your bills and other payments to be taken out after your payday. This makes repayments a much easier business and results in fewer fees, fines, and warnings for going overdrawn. By checking your balances more regularly, you will also have a more complete knowledge of your current financial position. This allows you to see exactly how much you owe out to each lender and begin to make more in-depth plans to clear your debt more quickly.
Take Out a Personal Loan
Taking out a personal loan will allow you to consolidate your debts. This means you can clear all of your credit cards and repay your dues to one singular lender. Again, this helps you to avoid fees and fines for late repayments. You may also be able to arrange a lower overall interest rate, meaning you’ll pay much less back in the long run. Use a reliable company such as Personalloan.co for the best options on the market.
Make a Budget
There’s no better time than the present to make a budget. Most people find themselves in debt because they’ve lived beyond their means. So it’s time to take your means into account and stop spending more than you can afford to. Sit down and make a note of any money that you have coming in from your work. Then deduct absolute essentials, such as your rent or mortgage payments and bills. The amount left over is what you have to play with. Use as much of this as possible to clear existing debts and keep spending on luxuries or non-essentials to an absolute minimum until you’re back in the black.
Following these steps will allow you to get on top of your finances and pull yourself out of debt as quickly as possible!