When in debt, no matter how little, you become restless and worried, you tend to sleep less and the financial freedom you used to enjoy before becomes a thing of the past. Acquiring loans is not a bad act, but you have to be ready for what lies ahead, and this involves implementing the right measures to repay the debt. You need to consider the below factors when you are in debt and need money and much more:
- How Much You Owe
- Selling Items That are Irrelevant
- Request For Lower Interest Rates on Your Credit Cards
- Reduce the Way You Spend
- Get a Side Hustle
- Get a Seasonal, Part-Time Job
- Get Professional Help
- Reduce Your Phone Bill
- Reassess Luxury Services
- Stop Borrowing
Based on a 2018 stat, the entire American household have a total debt of about $13.21 trillion (in 2018). This means that several people in the US are struggling with debt. Why is it so hard to get out of debt? Well, you may be finding it hard to settle that debt of yours because of you have made some mistakes when trying to get out of debt, or probably because you failed to adopt a good repayment plan.
Things to Consider When You are in Debt and Need Money
Some debtors move around smiling, less concerned about their huge debts while some are lost in the world of thoughts about their debts, they think of it every millisecond. They think of how long it’ll take to get out of their debt and other related things.
If you are in debt, who would you prefer to be? The lad who is worried about the debt he owes, or the lad who is less concerned because he knows what to do regarding his financial state? I bet you would certainly prefer to be the former! In this post, you will learn a few things that would change your financial life.
Debts has the ability to affect your spending power, and if not well taken care of, it can plunge you deeper into the murky sea of debts. When paying off debts, we often ensure that we rationalize the way we use our credit cards so we have adequate money to take care of other necessities. But sometimes, emergency situations often come up and we lack money to bail ourselves out due to the debt we find ourselves in. When in such situation, what do you do? What are the things you ought to ponder when deep in debt and when you are in dire need of money? In this post, we will be providing you with 10 things to mull over when in such situation.
When in debt and you are in dire need of cash, the best thing to do is to look for a way to complement your current income. By adding a side job to your major job, you will have enough cash to pay your outstanding debts and take care of other bills. You can also make use of your emergency fund (if you have one).
How Much You Owe:
Make a list of all your debts, be it a credit card debt or whatever debt you owe. The next step is to state the creditor in this list, including the overall amount of the debt, monthly payment, and the date each debt will be due for payment. With your credit card report, you can verify the debt you owe. Having a list of all that you owe, will allow you to have a lucid picture of your entire debt and it will also help you know your complete debt picture.
You shouldn’t just make a list and put it aside, you have to refer to this list regularly, particularly as you pay your bills. This list you created should be updated each month as you pay off your debts gradually. With the list in mind, you won’t draw out your credit cards and spend lavishly, because you will be quite aware of your financial state.
Selling Items That are Irrelevant:
If you are in debt and you require money urgently, one thing you should ponder is selling items that are irrelevant. Selling items you rarely use and could live without would earn you enough cash to take care of other bills and expenses. If you are lucky, and the proceeds from the items you sell is substantial enough, they may help you get out of debt. Wouldn’t you prefer to sell those items you seldom use and pocket the cash so you have some funds even when in debt? A wise person wouldn’t think of this twice!
If you live in an area that permit a garage sale, you can use it to sell your unwanted items and make good profit to cater for your needs while paying your debts.
When settling your debt, make sure you consider the debt with high interest rate first before considering others.
Request For Lower Interest Rates on Your Credit Cards:
If your credit card interest rates is on the high side, you will find it hard to make progress on your balances at this stage, you have to contact your card issuer to negotiate. Requesting for lower interest rate is a very common thing people do. If you don’t make late payments or you have a good credit score, there is a huge chance that your card issuer would listen to your plea and reduce your credit card rate.
If you eventually figure out a way to negotiate for a lower interest, you won’t have to pay much interest; this means that, you will have some cash to cater for yourself and settle other expenses.
Reduce the Way You Spend:
If you have a debt worth thousands of dollars on your neck, and you still use your card extravagantly, you will run out of cash quickly. When in debt and in need of cash, think about reducing the way you use your credit card so you don’t run dry. Paying off debts involves discipline and commitment. Which is why it significant that you evaluate how you spend and cut off all unnecessary spending habit. Doing this, will help you pay your debt in time and it may also help you avoid bankruptcy.
Bankruptcy is bad, it is one of what happens when your expenses are greater than your income which leads to you amassing debts that you can’t pay.
Get a Side Hustle:
With a side job, you will have extra cash to take care of your other needs while using your major income to pay off your debt. This side job could be cleaning, babysitting, tutoring, yard mowing etc. With the funds generated from the side job, you should have something to fall back on when you are struggling with you debt and you require some cash.
When paying your debt, make sure you pay off that with the highest interest rate first. Leave that with lower interest rate for another time.
Get a Seasonal, Part-Time Job:
With the holiday approaching, local retailers will be on the lookout for seasonal workers who are flexible and can keep their stores running during the busy, festive period. Make good use of this opportunity and get a seasonal part-time job which you could use to earn some cash so you don’t go totally broke.
These seasonal jobs are also available even outside the holidays. If you are lucky, you could land a seasonal job that is paying well. The jobs could be anything ranging from farm jobs, landscaping jobs, etc.
Get Professional Help:
With the help of a professional, you can pay off your debts in no time and go back to living your life of financial freedom. A financial professional can help you negotiate lower rates with your creditors, refinance homes or make budgets that can help in reducing the way you spend.
Several debtors have reached out to professionals for help and it has worked well for them. With the help of these professionals, they were able to get out of debt quickly. Make use of this strategy too so that you can pay your debt in time.
There are also top US organizations that help families financially. You can check out these organizations and select that which suits you and the needs of your family.
Reduce Your Phone Bill:
If you discover that you spend much paying phone bills, make moves to reduce it so you have cash to fall back on. You can decide to do away with your landline and use your cell phone as your main phone. To cut your phone bill, you can also ask for promotional rate or request for the cheaper plan for your phone.
When you lavish money on your credit card and you are debt cutting down or reducing unnecessary spending like that made on phone bills can help you save up some cash which will come In handy when you lack.
Reassess Luxury Services:
When in debt and need cash for something, one of the best ways to go about this is to re-evaluate your luxury services. Wash your car yourself, mow your lawn, stop visiting the spa, discard the gym membership and use fitness videos instead, etc. You can use the money generated from cutting out these services for other important necessity while paying your debt.
Stop Borrowing:
If you continue borrowing, you will keep on adding to your balances. Reducing spending on your card and don’t request for any more loans so you don’t create extra debt. New debts raises the payments you have to make, thus subjecting your monthly income to more strain.
Don’t borrow money when paying off a debt simply because you are out of money. Rather than doing this, you can look for ways to compliment your income. This way, you can pay off your debts gradually and also cater have enough cash when in need.
There are some things to consider when you are drowning in debt. One of them is seeking the help of an expert. An expert will provide the best financial help to you. Contact one if you see the need to. If peradventure you are battling with a debt as huge as $50,000, fret not. There are some simple steps to take in order to pay a $50,000 debt in just one year. Adopt these steps and you’ll be glad you did.
Ways to Get Additional Money to Get Out of Debt:
Are you in debt you require extra cash to get out of debt? Do the following:
- Don’t spend much on food
- Reduce transportation costs
- Reduce your spending on clothes and accessories
- Cut spending on entertainment
- Reduce your housing cost
- Reduce your cable/satellite/internet cost
The bottom line is; cut any unnecessary spending so that you will have enough cash to pay your debt and cater for your other needs. If you are financially down, there are some organizations in the US that assist families financially. Contact them to examine if you qualify.
