We’re living in an age where money is very easily accessible to us – even if we don’t think it is. More and more of us are accruing debts without realising the impact behind it. It can affect our credit rating, how easily we are able to apply for future loans and mortgages and, from a totally different angle, can begin to affect our mental health too. But once we have involved ourselves in debt, how are we able to climb our way out of the pit?
Save Like Your Life Depends On It
We are used to getting things as quickly as we apply for them. Instant loans are available to us meaning that money is accessible often by the end of the working day. These can be a lifesaver in some cases to the people that apply for them. However, it can also mean that instead of saving up money for what you want, more people are taking out these loans to get what they want, when they want it. In theory, there’s nothing wrong with this, as long as you can afford to pay it back. Instead of wanting things as soon as they come out, put any money that you would spend on impulse purchases into a savings account and watch it grow. Pretty soon you’ll be more invested in what you are saving rather than what you are spending!
Take Out Loans – No, Seriously!
It may seem counterproductive to take out more loans when you are trying to combat debt, but it could help you lower your repayments and pay off your borrowing a lot earlier than initially planned. Credit cards can often be gotten on a deal of 0% APR for a fixed amount of months, and paying off your loan early can be a way to combat the interest that they have added on as well as eliminating the borrowing from that provider altogether. If you have already got a loan on a low interest rate, this may not be worth doing if you can’t find a card or other loan which has a lower percentage of interest than the one you currently have.
Reassess Your Lifestyle
There may be simple things in your life that you are doing which are racking up the pennies without you realising. Things like leaving lights on when you exit a room, staying in the shower for longer than you need to and not shopping around for the food that you would usually buy during the week (or even eating out more than you can realistically afford to) are things which all add up. The good news is that these things can all be adjusted with your lifestyle. You just have to be a bit more conscious with your decisions and think about what you’re spending. Taking cash rather than a card with you may be able to help you with this, so that you can physically see what you are spending and what you will have left.