Taking a
debt can be both easy and good as it lets you do things which you wouldn’t have
done otherwise like buying a house. In most of the cases a person borrows a lot
of money and in the end finds it extremely difficult to repay it. It can have
an impact on your life as you would always be in stress which might stop you
from taking part social activities. It is recommended that you call a debt
advice line for effective solutions. In the meantime, we have some
simple ways by which you can reduce your debt:
§
You must
bring down your expenses
§ Make a list of your expenditure and
make sure you include everything.
§ Categorise the expenses into fixed,
necessary but not fixed and variable. Fixed expenses includes payments for
mortgage, necessary payments include your electricity bills, fuel consumption
etc. and the variable part includes costs for clothes, mobile phone bills,
dining out.
§ You can cut down most of your expenses
in the last category and in extreme cases in the second category.
§ If you make a budget than make a point
to stick to it.
- Increasing your
earnings
§
You must
find out if your company allows you to work overtime or you can ask for a
salary hike.
§
You can
also consider taking an alternative job.
- Restructuring
what you own
§ You can move to a smaller cheaper
house.
§ You can sell off the assets that are
not needed like extra cars in the family.
§ You can use your savings, or
investments to pay off your debt.
- Restructuring
what you owe
- You must replace your loans with – the ones
that have a lesser interest rate and lesser monthly instalments as it
might not worry you with large monthly instalments but the period of the
loan can be quite long.
Although before taking any final decision
contact the debt advice line to get expert opinion over your matter and reduce your debt in a
systematic manner.
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