The holiday season usually comes with a lot of borrowing, because people want to meet up with responsibilities, and not be left out of the fabulous lifestyle that is common around that time. And as always, after the borrowing comes the burden of repaying the debt. If you’re in debt because of the aforementioned reason or for something totally different, and you’re depressed because you don’t know how to get yourself out of it, this post should do you some good. Just read through, and you’ll be sure to find the information useful.
DETERMINE HOW MUCH YOU OWE
A lot of people tend to stay sad and depressed over their debt rather than think of practical ways to solve the problem. No matter how huge that debt is, the most important thing to do is to first consider how much you owe. Sum up the total amount of money you owe everybody, and take it from there.
PRIORITIZE ON WHICH DEBT TO SETTLE FIRST
You need to ‘strategically attack’ your debt and to do this you must first prioritize the pay off of your debts. This prioritization should be based on the time frame you have and the interest rates (if any). If there are interest rates, then it’s best to pay off the debts with the highest interest rates first. Prioritizing the pay off your debts will make it easier to come up with an effective plan to get out of debt.
AVOID MORE BORROWING
It’s possible to incur more debt as you try to settle older ones. The reason is because your spending power is automatically limited. However, it doesn’t have to go that way because borrowing more would mean causing more complications for yourself. So you want to avoid temptations to spend unnecessarily. Look away from things you can do without, and give your credit card to someone to keep for you if need be.
CONSIDER CUTTING COSTS
Everyone has hidden income, which refers to moneys that can be saved from cutting down on things you don’t need. Take a look at your bills, and lifestyle. What are those things you think you can do without? What are those bills you can cut to save more money? You’ll be amazed at how much you can realize from this type of move. And you can always channel the money into settling some of that debt.