Is 2019 the year in which you achieve financial freedom? What’s your debt elimination plan? Are you tired of having a dark financial cloud hanging over you? Is 2019 the year in which you finally wave goodbye to debt, once and for all?
Make a plan
While borrowing money can often feel like a ‘helping hand’ in times of need, it always comes with a heavy price tag. If you’ve finally had enough and are motivated to remove the burden of debt once and for all, then you’re going to need a plan. So, where do you start?
Here are four steps you can take as you walk the path towards financial freedom.
- Work out where you stand financially Before considering debt solutions, you have to know what the current state of play is. It’s time to be brave and face your demons. Start by listing out all your assets, debts, monthly expenses and income. Get hold of all your records: bills, income history, bank accounts, creditor information, loans, the more the better. We know this step isn’t easy, but once we know the extent of the problem we can get to work and sort it out.
- Free up cash
Getting your hands on more cash doesn’t mean you have to get an extra job. If there is a simple way to earn more money, then great! However, a few minor spending adjustments can go a long way. When going through your monthly expenses, can you see any items that aren’t essential?… Or don’t add any ‘real value’ to your life? If so, get rid of them. Cutting costs will instantly arm you with more cash in your battle against debt. - Start paying off debts – one by one
Unless you hit the lottery jackpot, you’re probably not going to become debt free overnight. And, if you’re trying to pay off multiple debts at the same time, you may struggle to stay on top of everything. Therefore, a better plan may be to focus on getting rid of one debt at a time.Then another, then another. While it makes sense to start with the highest interest debt, don’t be afraid to start small. If paying off the smallest debt is what’s needed to get you headed in the right direction before tackling bigger debts, then do so. - Consider debt consolidation
Having multiple debts with various interest rates and different creditors can feel overwhelming. It’s just too much data for the human brain to handle! One of the best debt solutions? To take all your various debts and put them together into one single, consolidated debt. This will make life a lot less complicated, since you only have to pay one debt, with one interest rate.
While taking a step in the right direction is a great start, no one said it was going to be easy.
And that’s why we’re here, to give you the help you need to achieve financial freedom. With offices in Perth and Sydney, we’ll provide debt advice in an honest and sympathetic way, without judgement. And, if you’re lacking motivation at any point, simply ask yourself “how good will I feel when I’m debt free?” Want to keep that feeling alive? Call us today for your free debt solutions assessment.
Life After Debt