Stick to a budget
It’s really not a good feeling when you realize that your debt is spiralling out of control. For most people it’s hard to cut back on living expenses, but it’s still important to stick to a budget until your debt is under control again. Think of it as a debt diet: you want to learn how to live within your means so you can stay on-top of your debt.
Why not get the help of a debt counsellor? They can work out a budget and help you to stick to it. It’s also perfect for that debt diet as you cannot get loans while under debt review.
Consolidate your debt
You can make your debt more affordable by consolidating your credit with a debt consolidation loan. A debt consolidation loan should have lower interest rates and the repayments can also cost less than you are currently paying towards your debt every month.
When you take on a secured loan to pay back small loans, credit cards, store cards and other debts you can save on interest rates and a single debt repayment is much more manageable than numerous debts.
Get your debt restructured
If you cannot cut back on your living expenses and you don’t qualify for a secured loan to get the full benefits of debt consolidation, you can apply to have your debt restructured.
Debt restructuring is summed up in these five steps to pay off your debt, only two of which you will have to see to:
1) Contacting a debt counsellor and providing them with your financial information so they can prove to your creditors that you are over committed and
5) paying the now affordable, restructured debt repayment every month.
What do you think will work best for you? We’ll be happy to answer any of your questions in the comments below.