I’m sure I’m not speaking for just myself when I say, that even if you have been sensible 90% of the time when it comes to keeping your buying brain on, there will be that 10% of the time when you make mistakes and end up in debt. Although debt can be a depressing thing to experience, it is not an impossible situation to get out of. In the following article, we will look at some of the best things you can do to clear outstanding debts – using our buying brains of course!
Make Friends With A Budget
Just one mention of the word budget and a lot of people start to tense up. However, a budget needn’t be something that you are afraid of, as all it really is, is a spending plan with a different name. If you are truly serious about clearing your debts, then you need to control what you spend and when. This is where a budget comes in. It will enable you to become more efficient with your finances, because if you have everything planned out and don’t deviate from it; you will always have enough money set aside for savings and enough to cover your debts.
Make Your Payments Higher Than The Minimums
All your debtors will have a minimum amount that they expect you to pay. However, if you really want to clear your debts you need to start thinking about paying more than the minimum. Paying to jut the minimum every month or week means that it could take much longer to clear a debt, than if you paid just a little bit over that minimum.
Pay The Highest Interest Rate Debts First
One of the best ways to clear debts is to pay the minimum amount on each of your debts, apart from the one with the highest interest rate. Once you have paid that one, move on to the one with the second-highest interest rate. Repeat this process and you will find that your debts clear quicker.
Refinancing Might Help
You may have heard of people who refinance their mortgage so that they consolidate all their debts into payments on their house. Although this will only work if you have enough equity to cover, it may be a good way to cut down the hefty interest rates that many debtors charge.
Spend Less Than You Would Like
Although we may not want to admit it, we all wish for things that are much more expensive than we can actually afford. One reason why a lot of people have ended up in debt, whether in Norway or elsewhere in the world, is because they saw things they wanted, and bought them rather than giving any consideration to whether or not they had enough money. This is why; if you are desperate to clear your debts you need to be stronger-willed and only buy things that you can actually afford. It could be that you have to live with less you than you would like, but if you can do this comfortably until you clear your debt, it will actually take less time.
Loans And Consolidated Loads Could Help
Although it doesn’t seem wise to take a loan out with another credit agency, a consolidated loan could help you clear your debt easier and quicker. A consolidated loan is good because it means you only have one payment to make every month and it is almost always at a lower interest rate.