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Debt is one of the most destructive financial obstacles in your path. The more you need a short term hand getting through the month, the more it backfires and you end up with multiple parties to whom you owe interest – bringing your monthly living expenses up. If your debt has recently risen to a point where you are struggling to get through the month, then read on for five survival methods that will help you to keep your head above water and your bills paid:
- Opt for Interest-free Loans Only
In many cases, the struggle in debt repayments stems from the interest that is charged alongside the loan repayments. Often, it is the interest that continually moves the goalposts, keeping many people paying off their loans for longer. Opt for interest-free loans when you look for alternatives to payday loans. Instead of keeping you indebted, you will be able to repay the loan faster and more efficiently. These types of loans are often the best way to effectively get an advance on your paycheck. Just remember, whatever you borrow from next month’s paycheck will be less next month, so plan accordingly to prevent a debt spiral.
- Consolidate Your Debt
If you owe a number of different parties money, consider debt consolidation. Not only is the interest going to be lower on the monthly repayments, but you are more likely to maintain a positive credit score because you will only need to worry about one single monthly repayment – even if it is larger. It also simplifies negotiations should you need to skip a month and do a double repayment the next month. Debt consolidation often comes with some kind of advice too, which may useful in learning to manage funds successfully.
- Consider Debt Negotiation
Explaining your difficulty in making payments each month doesn’t count as debt negotiation. Call the parties you owe and request a meeting or an alternative way in which you can repay your debt – like lower premiums for a longer time period at higher interest rates. Many companies experience challenges with getting payments from well-meaning people who battle to afford the payments. To remedy this, many have created alternative payment plans. They’re not upfront about this, which is why it is important to express that you genuinely wish to settle your outstanding debt but find yourself challenged in doing so. Ask if there is an alternative payment schedule you can negotiate.
- Try Debt Counselling
Consider debt counseling to help you shift your expenses and find space for debt repayments. Sometimes, debt happens due to emergency situations or unforeseen circumstances, like a loss of income due to an accident. Other times, it happens as a result of poor budget planning and little knowledge of expense management. Either way, debt counselors are equipped to provide people with real advice that is relevant to their situation in order to alleviate the burden of the debt, without actually waving a magic wand for it to disappear.
Keeping Your Head Above Water
Managing debt is never easy. While prevention is the ideal strategy – it’s simply not always possible to afford certain necessities or navigate unforeseen circumstances without a little financial assistance. The trick lies in managing that debt effectively and shuffling other overheads to accommodate the monthly repayments.