When it comes to money, it is easy for things to get worse. Maybe you intended to pay the bill for those vacations you took with a credit card, but an unexpected bill arrived and you are now in debt. The good news is that in Sean Cole we have found several ways to help you get rid of your debts and get back on track. Here are 5 of our favorites:

Stop adding to debt

Stop adding to debt

Many people with debts are in a cycle of expenses, but it is key to limit their expenses. Make a budget for the next three months detailing your income, your necessary expenses (bills, food and maintenance expenses), and your minimum payments, making sure they are paid as a priority. Living in the essentials and avoiding spending for a month or two will help you regain control of the situation. Easy-to-avoid areas include takeaway meals every week, daily lunches and morning coffees. Even walking instead of driving or taking public transportation will improve your financial situation.

Pay more every month

Pay more every month

If you are only paying the minimum of your debt, it is time for you to increase your monthly payments. If you have budgeted according to step 1 and have found that you have a surplus, excellent! Make additional payments – as much as you can – and begin to see how your debt is reduced. When your situation improves, you can start paying part of the replacement cash in an emergency savings account to avoid having to re-enter this situation.

Focus on the main debt

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If you have several debts, you may feel unbearable. Find a way to prioritize them: it could be the biggest debt or the one that charges the most interest. Do not ignore your other debts, but facing them in order of urgency will help you see progress and you will feel a real sense of accomplishment that will keep you motivated.

Forget loyalty cards

They can give you great discounts and free rewards, but the reward cards have one purpose: to make you spend more. If you can take it, cut them and disable loyalty applications so they don’t send you notifications. When you notice that you need something, add it to a list. Make sure you only buy things from that list and before doing so ask yourself if they are essential and if they can be postponed until next month.

Create a payment plan

Create a payment plan

If you have a good payment history with your provider, contact them and ask if they can help in creating a payment plan that can help you achieve your goals. They might even reduce their interest rate. Even smaller reductions can make a big difference to what you end up paying in total.

If you are determined to become debt free, with time, patience and using these tips, you can get it.

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