What are the Best Clear Debt Solutions?

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Answered by: Richard, An Expert in the Avoid Debt Category
If you want to feel free and truly independent in this world, it is important to be in control of your personal finances and debt. The best scenario is to not to get into unnecessary debt in the first place, but if you are struggling, here are 16 simple clear debt solutions to assist you and make your life more independent.



1.     Avoid getting into any extra debt! If you can’t afford it, don’t buy it!

2.     Create a budget. In this scenario, it is vital that you know where you are spending money every week. Only then can you know how and where you can begin to spend less and start to make savings. Keep a spreadsheet if you want and make it a target to reduce your expenditure in each column each month.

3.     Change your spending habits. Many people pay a little bit too much here and a little bit too much there. Basically they waste their money for no discernible improvement in life. If you start to change these habits, you are more likely to save money than incur debt.



4.     Clear any monthly credit card balances as soon as you can. If you pay off your card in full at the end of each month, you don’t incur any interest charges and you prevent any existing credit card debt getting larger.

5.     Avoid temptations. Many people are in debt simply as a result of clever marketing and advertising techniques that tempt and persuade you to spend money on something that you don’t need, or to spend on a more expensive model than your require.

6.     Be careful with who you mix with. Perhaps the biggest reason for people spending more than they need is peer pressure. If you are continually mixing in circles of people who boast about what they have, it can be very disheartening and difficult to stay financially responsible.

7.     Consult any free debt advice charities or agencies that exist where you live. Consider debt consolidation companies that consolidate your debt into one monthly payment.

8.     If you begin to have a surplus of cash each month and you have a mortgage, think about starting to pay off the capital on your mortgage. In this way your monthly repayments will gradually be reduced, all things being equal.

9.     If you have any savings or inheritance, use it for clearing debts. This is likely to be much more efficient and prudent in the long run.

10.     Give yourself small targets towards your goals. For example, in the first few months your targets may be to start saving just a small amount. Then you may focus on using your savings to pay off existing debt. As you clear the debt you will begin to save even more and have the means to pay off even more debt. There will be a positive snowball effect.

11.     Take responsibility for the debt. Ascertain in your own mind that the debt is yours and that you are responsible for eliminating it. Blaming anybody else, no matter what the reason, will not help!

12.     Keep yourself motivated by making tangible gains. If you prove to yourself that you can cut your expenditure in the first month, you create the momentum to continue. If you can only make a small gain, then make it. It’s a great start!

13.     Treat yourself. If you make your monthly target, allow yourself a small and inexpensive treat that helps you bask in your glory and maintain your motivation.

14.     Get over the social stigma that you perceive is linked to personal debt. You are not going to clear your debt if you don’t accept that you have acquired it.

15.     Sell things that you don’t use or need and use the cash gained to help pay off any debt you have. Start with things that you haven’t used for a year and have little sentimental value attached. By using these ‘useless’ items to good use to help to pay off debt, you will feel good!

16.     Contact your bank and let them know your situation and what you are trying to do about it. For example, most banks apply high charges for going into an overdraft without prior agreement. By liaising with your bank, you may be able to avoid incurring the extra charges that will make your debt situation worse.

Overall, you can see that many clear debt solutions are actually quite simple and psychological. It’s about not spending money on things that you don’t need and not feeling the stigma of having less than somebody else. You will then find it much easier to cut expenditure, make savings and thus be on the road to eliminating debt. Once you have that momentum, you’ll not look back.

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