10 Steps To Get Debt Free

Have you been living in constant fear of the next letters or phone calls from banks, debt collectors or solicitors, threatening legal action? Ever worried about bailiffs coming to your home?

Then you need to stop worrying right now.

Read on to learn how to empower yourself and to overcome your personal debt, by using the following hints and tips to help you to deal with everything from banks, lenders, debt collectors, bailiffs, solicitors and credit rating agencies. get out of debt free

How You Can Beat The Banks, Credit Cards and Debt Collectors

You may have resorted to using credit cards, catalogues or taking out an overdraft to finance your regular outgoings. By taking action with your finances and using existing credit you can help get yourself debt free, before you get trapped in a vicious circle.

You can easily get out of debt free of money worries.

Start by playing the lenders at their own game. It's time for you to stop worrying and start sleeping soundly every night once more. Learn how you can deal decisively and totally lawfully with all of your debts, once and for all.

Learn how to time to beat the banks and get out of debt now!

1. Take a good look at all of your debts

One of the first pieces of debt advice is to begin by taking stock of your finances and debt situation, so you can begin to move forward with your finances:

Get full account balances for all your bank accounts, credit cards and any other debts you may have.

Find out the current interest rates that you're being charged for each account.

2. Start repaying your debts more efficiently

You can certainly save money by just switching balances from your more expensive credit cards to your cheaper ones.

This also applies to store cards which tend to be more expensive compared to standard interest rates which are charged by all major credit card companies.

For some existing credit cards you may also have 0% balance transfer deals so it's important to pay attention to any marketing information you receive from your existing card providers.

3. Make a detailed budget

Make a full itemised list of your monthly spending. One way you can do this is using a spreadsheet, so you can keep track of your income and expenses.

4. Review your spending and where can you make any savings

After you've created your budget, place it under a microscope to have a detailed look at what your spending is:

Do you have the best prices for your electricity, gas, water or broadband provider?
What about home or life insurance, a re there nay cheaper plans which offer the same level of cover?
Could you take a packed lunch to work each day, instead of a buying a sandwich?
Do you make use of your gym membership?
Do you go out on Friday nights?
Do you regularly go to restaurants or theatre?
(This is not about stopping going out altogether, but for instance, going out once each month instead of several times every week can free up a large chunk of your money).
Having and running a more expensive car may mean the finance on it is crippling you. Let's face it, if you can can save, you can put more towards your debt repayments.You could you of course sell it, and purchase a cheaper one using a smaller loan. Maybe you could save petrol by only using your car when it's needed; e.g. by cycling to work or taking part in a car share scheme instead?
Don't get greedy. Taking out 'credit' just to buy a flash car like a Porsche, is plain irresponsible if you're already knee high in debt, and no way to get out of debt. In fact, you're acting like the bankers who got us into the economic crisis in the first place!

If your debt problem is on top of you then it's not going to go away by simply trimming the edges of your spending; you should be brutal and take a good look at your whole lifestyle as well so you can get out of debt quicker.

5. Remove any temptation to fall into debt

Cut up your credit and store cards so you so not have the temptation to start spending again with them.

Close your credit card accounts which are not used or do not have any balance on.

Tell your credit card providers to reduce your credit card limits (just bite the bullet and ask them)

Throw away (mail order/shopping/store) catalogues you have. Make sure you retain any paperwork about your outstanding debt.

6. Automate the repayments of your debt

You can reduce the risk of forgetting about your debt repayments if you have a system of automating them.

Making a standing order through your bank will ensure you pay a fixed amount on a set date each month and many credit card providers allow you to setup your payments like this, even though this method is not widely publicised.

You can either ask your card provider(s) whether they accept standing order payments or see the reverse side of your credit card account statement.

7. Prioritise the payments of your most expensive debts first

Prioritise repaying your debts in the order of the interest rates that they charge. You should always aim to pay off as much each month as you possibly can.

Store cards are more expensive than credit cards and taking out an overdraft. If you've been in such debt that you've resorted to payday loans then this will end up costing you massive interest rates, so paying this off will be your number one priority.

Although you may be prioritising your debt, you should ensure you continue to make the minimum payments on all your other credit cards, at the very least.

Stop any savings contributions you're making. You'll not be making as much interest on your savings as you'll save by repaying all your debt.

8. Move you card debt

You can help yourself get out of debt by moving your debt to a 0% balance transfer credit card (only do this you have a disciplined approach to your repayments)

Applying for 0% balance transfer credit cards could be a very good plan as it will offer you the opportunity (for an initial period at the very least) to pay off a big chunk or all your debt without having to pay the interest on it. To move your debt across, you'll have to pay the Balance Transfer Fee (around 2.9-3.0% of the transfer amount) but this will still be cheaper than having your debt charged at a rate of 15% annually.

Take care though, having an extra credit card means another credit limit, which is more money you could borrow if you do not have any discipline. Shut down any cards you do not need to ensure you don't rack up any further debt.

If you're worried about having another credit card to get out of debt, then think about taking out a personal loan. Although personal loans may well work out more expensive than credit cards, they have a big advantage of having a fixed end date giving you a light to aim for at the end of your debt tunnel.

9. Stay motivated

If you want to get out of debt free yourself of any stress you have then the advice here should be enough to get you started.

Many New Year's Resolutions have a habit of failing because of lack of will power. Remember although it'll never be exciting when you're repaying your debt, it'll certainly be exciting when you get out of debt.

Begin by setting yourself regular targets and rewards to look forward to when you reached your goals. For example, when you've repaid your first �500 of debt, reward yourself with a well deserved evening out, as a treat.

Make sure you do not get too stressed out with your money worries and want to get out of debt free information is on offer. After all, it's only money. The most important factor in all of this is after all, your own health. Go outdoors for regular walks, jogs or cycling with can really de-stress you when your debt problems may seem like they're all on top of you. This can help you take a step back to look at the world from a different perspective. Another thing that may help is to discuss this with close family or friends.

Always use credit responsibly, and act lawfully and be honourable at all times. Don't just use credit as a way of buying material goods so you can satisfy your ego, as for many with debt issues their egos will never become fully satisfied. Try letting go of your ego, and you'll become a much happier person within yourself.

10. Finally, if you think you're completely buried in debt

There's absolutely no debt problem which cannot be solved. Even when you may think you're not sure about what actions you need to take. With debt, there's one thing that's certain; the longer you leave the problem, the more it will worsen.

By acting early, and getting the right debt help you can be sure of having honest, supportive and balanced advice.

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