Being in debt is no song and dance, and it can affect your life ways other than not being able to pay for anything. Stress and worry from debt problems lead to mental and physical health problems, so it’s important to try and eliminate your debt as soon as possible. So how do you claw your way out of debt in this day and age? With the cost of living always on the rise and wages that don’t match these figures, it’s hard to see a silver lining. Luckily, there are some steps that you could be taking so that you can beat your debt, even if you’re on a low income. Check it out:
Get professional help
The first steps you should be taking when you’re in debt is seeking professional help. There’s no shame in admitting that you’re struggling, and it’s going to work out better for you in the long run if you act now and reach out. Companies like National Debt Advice offer debt help for people from all runs of life, no matter whether you’re in a little bit or a lot of debt. They help you by writing off up to 85% of your debt, and then work out an affordable repayment plan – so that you can still live as normally as possible. Another bonus of using a service like this is that you will no longer receive any hounding phone calls or letters reminding you that you owe money, taking the stress off your shoulders!
Another thing that you should be doing is keeping an eye on your credit report. Believe it or not, your credit score can make all of the difference with applying for loans, mortgages, and credit cards in the future. Your score is based on your history with money – good or bad. So, if you’ve not had any history that your credit score can pick up, then you’re still likely to be declined for loans because companies won’t be able to tell if you’re trustworthy. Keeping an eye on your credit score can help you build your reputation back up, and most companies are able to tell you what you’re doing wrong with your finances and how you can improve too. You can download completely free apps like Clear Score, who take away all of the unnecessary jargon that you don’t understand and help you build your finances back to where they should be.
Reduce your outgoings
While professional help is your best bet in getting out of debt, there are always different steps that you could be taking yourself to help get yourself out of debt. Reducing your outgoings is something that you should be considering, and it’s much easier than you think! Check it out:
Call around your utility providers. We mean gas, electric, water, tv, internet, phone – the lot. Use your haggling skills to get them to offer you a better deal on their service. What all of these companies won’t tell you is that they are always able to offer you a cheaper deal – they just want more of your money! The threat of you leaving and going with another provider is normally enough to get them to offer you a much more agreeable price and service.
Head to your bank and take a look at everything that goes out of your bank each month. Is there anything you’re paying for that you don’t need to be? Things like that unused magazine subscription or your gym membership – do you really want or need to pay for them? Get rid of anything that you no longer need or use so that you can free up some money in your bank each month to help repay your debt.
Clip coupons for regular essentials like your weekly food shop. While you might think that a little bit off here and there won’t make a difference, you’d be surprised at how much you’ll save each month.
Always have savings
Finally, it’s always a good idea to have savings so that if your bank does dip under, you’ve got money there to survive on. The idea of saving might seem far fetched when you’re in debt, but here are a few ideas that are totally doable even for those on a low income:
The money you’re saving from clipping coupons could be put into a jar and banked at the end of each month. No matter what the amount is, it’s still money saved that you wouldn’t have otherwise managed.
Pick up change on the ground when you’re out and about. A little bit here and there will soon mount up to a very nice number – not bad for money you wouldn’t have had anyway!
Set yourself a tiny amount each month to save. Even if it’s a few dollars each month, it’s better than nothing and you will get yourself into a good habit of saving for when you are out of debt.
As you can see, there are some simple and easy steps to take when you’re on a low income and struggling with debt worries. Remember that professional help is always the best route to take, but help yourself out in the meantime as well with these tips!
Photo by rawpixel on Unsplash
