5 Ways To Stop The Spiral Of Debt And Take Control Of...

5 Ways To Stop The Spiral Of Debt And Take Control Of Your Money

By Adam Smith | Finance Contributor on March 31, 2020
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Debt is an issue that many people are all too familiar with. You might have multiple credit cards all with balances on them or you’ve taken out a multitude of loans in the past. When you owe a lot of money, it can be confusing, daunting and frustrating to try to see the light at the end of the tunnel. However, with patience and careful planning, you can stop the spiral of debt so that you’re more able to control your money.

Earn More

While it might seem easier said than done, earning more income doesn’t have to be hard. It could be as simple as holding a yard sale every weekend and getting rid of junk that’s been laying in the garage. You might want to take on a side gig, like ride sharing, and earn more this way. Some people find that becoming bold and asking for a raise or promotion at work really pays off. Earning more allows you to have extra money that can be put towards debts or into a separate savings account.

Put More Towards Balances

You charge $2,000 to a credit card and realize that your minimum payment due is only $30 a month. This low amount may be tempting to those who want to keep bills to a minimum, but you’ll likely only be putting money towards the interest rather than to its principal. Even if the minimum payment due is low, try to put more than that towards the balance each month. In doing so, you’ll be paying down the balance quicker and will be less likely to be tied to its interest.

Consolidate Multiple Accounts

Consolidation is a smart idea for individuals who have multiple accounts. Let’s say that you had to take out multiple student loans when going to college. Now that you’ve graduated, you are responsible for paying for all of those loans combined. This can cause you to spiral into debt very quickly. Consolidating means taking all of those balances into one account. The interest rate is lower and you’ll have a longer repayment term that makes your bills more manageable.

Live on a Strict Budget

It can be difficult for some people to live on a strict budget, especially if they’re used to overspending. However, it is possible and can do wonders for your financial well-being. Take what you make and your debts into consideration before creating a budget. From there, you’ll know how much you have left over at the end of the month and what you can spend. When shopping, try to stick to your list and avoid using a debit or credit card as much as possible.

Organize Your Money

Organizing your money can eliminate confusion and help you to have better control over it. If you still haven’t signed up for a mobile banking account, now’s the time to change the way that you look at your finances. Mobile banking allows you to see what you have in your account at any given time and what’s being spent. This allows you to have total control over your finances and prevents the likelihood of overdrawing on the account.

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