Getting out of debt is like getting up in the morning during the winter season, it’s too hard to do. Dealing with debt may be troublesome, but there are ways to alleviate your perils. Check out the strategies we have below and see which one would suit you best.
Generate More Income
If your salary is not enough to keep up with all your expenses and thus gives you room to be in debt, you need to work harder and find ways to generate more income. You may increase your working hours to have more pay, get a part time job or a second job if you have more time to spare, buy and sell items or any legal way that you could think of to make the ends meet.
Seek Assistance from Family or Friends
It may sound familiar, but if it is one of your options, then this would be great. If you have a loan from the bank or a lending company which has increased interest rates over time, this would be an added burden of course! Try to seek for assistance from family or friends that could help so you could pay off your debt immediately. Family and friends will not drain you off like the lending company but you need to reassure them that you would return the money you have loaned from them as soon as you can.
Decrease Your Expenses
Dining out, going to the movies, getting your favorite latte every day from your favorite coffee shop are only to name a few, these are the things in your routine that needs to be lessened in order to stretch out your budget. Filing taxes on time to avoid penalties could also help. You could also receive assistance through government funds or premiums like the GST refunds or medical premiums. Cutting back on non-essential expenses can help you keep up with the rising demand for cost of living too.
Sell Some Assets
If you have assets that could alleviate you from the current financial crisis that you are facing right then don’t hesitate to sell. A piece of land that you have not thought of on what to build, that luxury car or second car that you are just keeping in the garage may cost some generous amount that can be used to pay your debt. Once you get through your debts, you could buy the same things you have to let go of. Just keep the faith!
Think About Consolidation Loan
You can reduce your monthly debt payments through a consolidation loan as long as there is no credit added until it is fully repaid.
Debt Repayment Plan
Some creditors have their debt management program and see which one is well suited for you.
Eradicate Debt Legally
If all else fails, debt can be settled through legal remedies such as filing for bankruptcy or through consumer proposal. Make sure to hire a licensed trustee through Bankruptcy and Insolvency Act to help you out.
Being debt free in 2015 can be difficult at first, but through hard work, perseverance and by implementing any of the strategies we have mentioned earlier, you would definitely be on your way there.