Be Free Of Debt This Year

No matter the time of year, it is never a bad time to draw up plans or set yourself some goals. Every new day and every new minute can provide the ideal chance for people to turn over a new leaf, and this means if you are unhappy with your current financial situation, you should be looking for ways to make a change.

You can be free of debt this year but you need to acknowledge your problem and you need to take steps to improving your finances. If you have this mind-set, you will find that you can be free of debt before the end of the year.

The most important step in moving out of debt is to not panic. It is likely that you will need to take a number of steps to improve your finances and you shouldn’t feel as though you have to make all of your changes in just one day. At least give yourself some breathing space to analyse your decision and then think about what to do next. A lot of people make big decisions in an attempt to get out of debt only to find themselves in bigger financial difficulty than they started!

Draw up a budget and make changes

If you are looking to be free of debt this year, it is vital that you draw up a budget. You need to know what the situation is you are facing and how you can make changes. A lot of people don’t appreciate this level of honesty regarding their finances but there isn’t a lot that can be done apart from being genuine and honest when it comes to money.

If you are struggling with creating a budget, help is available. There are many tools available online which allows you to put in information while you will also find that many people can turn to family or friends for help.

You need to consider whether you want to turn to family or friends for help. It can be difficult to make this decision because a lot of people prefer that their finances stay private. It may also be that people will feel judged by the people close to them if they admitted that they were in debt. It is up to every individual to work out how they should process with getting out of debt. The first step is to be honest with yourself and you may find it is easier if you are honest with other people too.

Once you know how much debt you have and what your current financial situation looks like, you’ll need to make changes. Some of these changes may include:

  • Looking for additional shifts or overtime at work to earn more money
  • Looking for a second job to allow you to bring in more income
  • Selling items to bring in more cash
  • Cutting back expenditure on items that you don’t need
  • Swapping to cheaper brands

Taking this sort of action can help you to balance out your finances and it should be that you can see some positive impact taking place.

Not all debt is equal

When it comes to debt, it is important to know that not all debt is equal. There may be some debt that you can pay off a longer period of time and there may be debt that needs to be paid off very quickly. This is why it also pays to sit down and review all of your financial transactions. Ideally you will have some leeway when it comes to finances but it may be that you need to take swift and decisive action regarding some of the financial problems you face.

If you need money in a hurry, and you want to make sure you find an attractive rate for a loan, a guarantor loan could be the ideal solution. If you can find someone who is willing to act as a guarantor for you, and they have a positive credit rating, you will likely be offered a loan at an affordable rate of APR.

This is the sort of assistance that allows you to take control of loans that are looming large at short notice, and this may give you the breathing space to work out a more effective plan for your finances.

Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.