trapped into debt

Getting Trapped into Debt? How to get out of your Debts Easily?


Are you worried about your debts? If you are in a situation with piling debts and mortgages, it is difficult not to worry. With limited resources to pay, debts can be overwhelming.

Getting Trapped into Debt?

For example, you have a credit card. You used it for your regular purchases. You also used it to buy a gadget or an appliance under a 24-month interest plan. When you purchased that expensive item, it seemed easy to pay. After it all, it is 24 months to pay. Plus, the first few months may also be zero per cent interest. On top of this card are your regular monthly house amortization and utilities.

After trying to pay for one year of your credit card, something unexpected happens. You got laid off from your job. Or you had a medical emergency that cost a huge amount of money. Or something unexpected happens. With the lack of money, what you did is to buy more using your credit card until you maxed out your credit card limit.

We all know that banks pile off on interest for late payments. The credit card’s high interests start to kick in. Then you feel you are sinking into more debts. You feel you can no longer pay for your bills, your amortization or your credit card dues.

During the time of purchases, you felt those were affordable and justifiable ones. But with the lack of money to pay off debts, you feel you are losing control of your situation.

Do not worry. There is hope to manage your DEBT

While you may feel sinking into your debts, do not worry. There is hope. You can bounce back. There are ways to manage those debts. You can gain control once again of your situation. There are many ways to manage debts.

Think clearly and plan ahead

It is hard to think clearly when we worry. So try to relax. Calming your mind will help. If you focus on worry and stress, the more you attract negative energy. Worse, it may even affect your health. Being sick should be the last thing to happen.

Sit down and reflect on what went wrong. Analyze the mistakes you have made. What could you have done to avoid falling into a deep debt?  What should you have done better? Write the ways on how you can deal better in the future. What are the steps you can do to pay off your debts?

Writing them with a clear mind and focus can help you solve your problem. Worrying more about your situation will only make matters worse.

Stop unnecessary purchases.

When you feel tempted to spend, ask yourself again and again if it is worth buying. Spend only on necessities. Avoid the ‘wants.’ If you were impulsive in your spending habits, try changing your behaviour. Focus only on the absolute essentials.

Track and calculate your Earnings versus your Expenses

It is easy to get lost into so many payables you might have. Have a ledger to track all your expenses. Track it against your income. Doing so can help you see if you are still able to save off to pay some of your debts.

Get other sources of income

Try another job or to seek out a new source of income. You might have some weekends off. You may have some spare free time at night. Use that extra time to look for other jobs. For example, there are many part-time online jobs you can do.

Try a debt consolidation loan.

If you have many debts, tracking the different due dates can be very difficult. Trying to pay them off can cause a lot of worry.

A debt consolidation loan can be the perfect solution for you. A debt consolidation loan compiles all your debts. These include credit card, bank amortization, other loans and debts. You need to pay one regular repayment with one rate of interest instead of multiple EMI with different Interest rate.

One debt consolidation loan usually outweighs having many small debts. Tracking one loan to pay is much easier.  With one loan, payment is pretty straightforward. You will also have a better idea when you can be free of debts.

One loan can also save you money. You can have less interest or fewer fees to pay (or both). This method can also be a way to enhance your credit rating.

Even with the advantages mentioned, do not think you are on the easy road. Do not fall into the trap of having that false sense of security. You still have to think of ways on how to pay off that one consolidated loan.

But the good thing is you have lesser things to worry about and think about. You can now focus your efforts on finding more revenue streams.

Talk to a Financial Advisor

If you want to find someone to talk to for Debt Solutions Melbourne, reach out to an expert in debt management. Sterling Debt Advisory can help you manage your finances better. We aim to help our clients in their financial and emotional position. We do this by advising on how to manage debts. We assist our clients with all possible solutions. We help our clients cut costs and better manage their finances.