Having A Hard Time Managing Your Debt? Here Are Some Pointers To Help You
Living with debt is an incredibly difficult thing to do, and yet it is so common that so many of us accept it as something that we just have to deal with. It seems safe to say that over the last eighteen months all of us have struggled with our finances in one way or another, whether that has been not knowing where the next paycheck will come from or wondering if your employer is going to make it through the next few months to keep giving you that paycheck. Many of us have dipped into our savings, or cleaned them out entirely, and many of us have had to take on more debt than we feel comfortable with.
When you find yourself in a position where you are paying off multiple loans and debts every month, it can feel like you’re at the bottom of a dark hole with no lifeline in sight. The important thing to remember is that there is always something that can be done, even if the obstacles seem insurmountable. Here are a few tips to help you manage your debt and get back on the right track.
Know What You’re Dealing With
To start with, you are going to need to get organized. There are a lot of people out there who get very anxious about money. When things start getting tricky, they would rather look away and pretend that there is not a problem. This approach is not going to resolve anything, and it is not going to make you feel any less anxious about things. It is time for you to make a detailed list of each of your outstanding debts and loans. Organize them by repayment date and make sure that you understand the interest rates and how much they are going to set you back.
Find An App That Helps You
If you are having a hard time marshalling your different debts, then it can really help to use a finance that pulls them all together. For example, one of the biggest questions that a lot of people ask is which debt to pay off first. Do you try to tackle the biggest one first, do you aim to pay off those smaller ones quicker, or do you chip away at each one a little at a time? If you are struggling to figure out which to prioritize, Tally’s guide to debt repayment can help you to make sense of things. Tally is a finance app that consolidates your outstanding credit card debts into one simple monthly payment that is easier to manage.
Identify Difficult Financial Periods Ahead Of Time
We understand that this point is a bit easier said than done, isn’t it? If we could predict every difficult financial period before it happened, we would all be a lot less anxious. However, there are some parts of the month and times of the year that are always going to be a little tougher than others.
For example, you are always going to be looking for those extra pennies the week before payday. You are also going to be facing steeper energy bills and potential healthcare costs more frequently during the winter months, especially as it looks like energy costs are set to go up this winter. Try to work on creating a cushion in your budget ahead of time to give yourself a bit more room when things are a bit tougher. Think about taking on a side-hustle or some freelancing to help give you a bit more security through the leaner months, and don’t be afraid to ask around if anyone knows of any projects that you could help with.
Talk To Your Bank And Loan Providers
A lot of us tend to see financial institutions and loan providers as these faceless forces that are there to separate us from our hard-earned money. While there are certainly some loan providers who are less reputable than others, something that is important to remember is that their end goal is you paying them back. You are well within your rights to get in touch and ask if they have any support options available to restructure the loan, or if paying it off sooner would incur any penalties. It is always worth doing your research before trying to pay back a bigger chunk of your loan than is due just in case.
Talk To Your Friends And Family
It will not come as any great surprise to learn that worries about debt and money are some of the biggest contributing factors to stress and mental health issues. It can feel like you are all alone when you are finding it hard to work your way out of debt but remember that there are people there to help and to listen.