Debt can be a cause of concern for many of us. If you have debts that you are struggling with, then you may feel you are in an impossible position. However, there are things that everyone can do so that they can get those debts paid off. It can mean some major lifestyle changes but it will be worth it.

Check the Situation

To start with you need to find out exactly how much debt you have and who you owe money to. It can be easy to not know exactly how much you do owe and before you start to repay it, it is important to find out. Take a close look at all of your finances and you will get a precise idea of where you are. This is important and it can be difficult as you may not want to admit to yourself how much you actually owe. However, you need to know this information before you start.

Set Goals

Next you need to decide which debt to pay off first. Financially it makes sense to pay off the most expensive, which you can find out by comparing interest rates and costs of each one. However, it may be more appealing to you, to pay off the smallest debt as then you will be more motivated to pay off the next. There may also be some debts that are more worrying for you that you would like to get rid of, perhaps if you owe money to family and they are pressuring you to repay or if you owe money to suppliers who are threatening to cut you off. So decide which order you want to pay off. Also write down your goal and why you want to achieve it and keep looking at that goal to motivate you to continue with it.

Spend Less

It is wise to start by spending less money. If you can reduce how much you are spending then you will have more money available to repay your debts. Look at your bank statements and also start to note down how much you spend on everything that you buy. Compare prices of everything you buy and get the cheapest that you can. Also think about whether everything that you are buying is necessary and if you can go without and save even more money.

Earn More

Earning more can sometimes make a more significant difference than spending less, particularly if you spend very little anyway. If you have a full time job, then looking for an alternative that pays more, could be a good way to get extra income. You could alternatively see if you can get more money in your current position, perhaps by asking for a pay rise, working overtime or looking for the opportunity for a promotion. Taking on another job could also be an option of you have the time. If you would rather stay at home you could do some freelance work, online work or even try starting a business. Just make sure that whatever you choose to do does not end up costing you more money than you are making.

Whittle away a Debt

As you get extra money, whether from earning more or spending les, you can start paying extra off a particular debt. You should have already chosen which debt you would like to pay off first and you may be able to make overpayments or you might have to save up all that is owed and pay it off in a lump sum. If you need to do this then it can be wise to set up a separate savings account to collect the money in.

Remove all Debt

Once you have paid off one debt, you then need to move onto the next. Paying off one means that you will no longer have to pay interest payments on it and therefore you will have some more money that you can use towards paying off the next debt. This means that you will be able to pay this one off more quickly. Keep moving from debt to debt until they are all paid off.

Set New Goals

Once you are debt free it is time to set new financial goals. Even if that means taking out a new no credit check loan in order to do so. Think about what you might want to achieve in the future. There may be items you want to buy now you are out of debt, you might want to start a pension, save a deposit for a mortgage or something else. Think about whether you might be wise to get rid of your credit card so that you cannot get into debt with that again, if you did before.

Change Attitude to Debt

It is wise to change how you think about debt. You may have seen a loan as an opportunity to have some money to spend, but now it is paid off you may have changed your mind. It is difficult to repay loans and they can be expensive. It is worth thinking about whether debt is all bad though. Some loans, such as mortgages can be extremely useful in some situations but it is wise to make sure that you are confident that you can repay it and that you are aware of the cost of it.