If you’re in debt then you’re not alone. The average person has over $6,000 of debt on credit cards and over $24,000 in other non-mortgage debts like car loans. Meanwhile, student loan balances are at a record high of over $34,000. It’s no wonder, then, that over 50% of people spend more than their average monthly salary each month. So, how can you take back control of your finances and start paying off some of those outstanding balances? Here are some expert tips to point you in the right direction.
Reduce Your Outgoings
The first step to getting out of debt is to minimize your outgoings. Be ruthless and take steps to cancel all the subscriptions you don’t use. Next, take a look at your utility bills and insurance policies. Are there any ways you can make savings? Use comparison websites to find cheaper options and make the switch so you can save money every month. When it comes to insurance cover, there may be some policies that you can cancel altogether. For those which offer essential coverage such as your long-term care insurance, you should take the time to check whether you’re with the right insurer for you. There are lots of companies offering this type of coverage so you need to find the right premium option to suit your needs without costing you the Earth. Companies like Lincoln Moneyguard III have excellent policies at affordable prices, so it’s worth checking out all your options.
Start A Side-Hustle
If your monthly salary doesn’t cover your outgoings, one solution is to earn more money. If you have a skill or talent that you can monetize, it can be the perfect side-hustle to make a little extra. Whether it be cleaning houses, babysitting or working as an online virtual assistant, you can earn additional income that can then be put towards paying off outstanding debts.
Sell Unnecessary Items
There are probably lots of items around your home that you no longer need. Selling this extra stuff can help you to raise more funds to pay off your debts. Whether at a garage sale, through Facebook or via local classified ads, you can make money from your unwanted items.
Negotiate Your Bills
If you have interest rates on your credit card that are so high you can’t pay off your balance call your card company and negotiate. You may think that you can’t ask for a lower interest rate, however, it’s surprisingly commonplace. As long as you’ve got a history of having paid regularly and on time, you have a good chance of obtaining the lower interest rate you need.
Ditch Expensive Habits
If you’ve followed the tips above and are still short of funds every month, it’s time to evaluate your habits. If you drink alcohol, smoke cigarettes, eat takeout regularly or even buy a daily coffee consider giving it a miss. You’ll soon find that you can get by without your expensive habits and you’ll have extra money that will help you get your debts under control.