Nowadays, the cost of living is going through the roof while the wages and salaries that we are paid are tending to remain pretty level. This means that life itself is pretty expensive and many of us are working simply to cover our rent or mortgage payments, alongside our bills and other necessities such as groceries and healthcare. Fewer and fewer people have savings to fall back on when times get rough, or if we experience unexpected expenses or emergencies, as increasing numbers of us are living on a hand to mouth basis, which after the pandemic is no surprise. It has meant however that many of us are sinking into debt. Whether we’ve made a few unwise investments, decided to pursue higher education and had to borrow to tide ourselves over during our studies, made some rash luxury purchases, or were hit by a large veterinary bill, healthcare bill, or repairs cost for appliances or vehicles, many of us are experiencing personal debt of some sort or another. Now, dealing with these debts can prove extremely difficult. Especially when we don’t really have much disposable income to dedicate to clearing outstanding balances. But not to worry. There are steps that you can take to deal with multiple debts at once. Here are a few for you to take into consideration!
Debt Management
If you have multiple debts, you could consider a debt management programme. Click here for more information. This option means you have debt counselling, and another company will manage or at least advise you on your debts. Your current debts will be frozen so you can’t get into more debt on those accounts or credit cards. The debt counselling agency will be able to advise what is the best for your personal situation. Beaware of for-profit debt agencies, they may not have your best interests in mind. Your credit will also take a hit in the first instance, but taking control of the situation should mean you are able to clear the debts sooner and start rebuilding your credit and bank balance.
Reducing Personal Spending
Sure, you may want to treat yourself every once in a while, as going without for extended periods of time and seeing your entire income go on clearing debts can be a little disheartening. But avoid being tempted into making luxury purchases. The more self-restraint you practice, the sooner your debts will be gone. Once they’re cleared, you can use your disposable income to treat yourself as a reward, and you will no longer be forking out interest to lenders or inhibiting your own progress.
Sure, having multiple debts can be frustrating. But if you follow the above steps, you can help yourself to clear personal debt as quickly as possible, releasing yourself from its burden and allowing you to subsequently progress with your life!