Having a debt means a lot of stress which affects both mental and social life of a person. Sometimes, the burden of debt is too much and one left with no other option but to do suicide. According to various health studies, debt is one of the reasons of suicide. Besides suicide, people also face marital problems, job instability, family breakdown, social apathy, and other issues. To clear the debt, we keep borrowing money and pay multiple EMIs but there is no end to this issue. Here in this blog, we discuss the top 7 ways to clear debt fast:
1. Don’t Borrow Money Unnecessarily:
Don’t borrow money when you don’t need it actually. Control your lifestyle. Keep a close tab on your expenditures. There is no end of desires and expenses. If you want to get rid of debt, then stop buying things on finance. Just focus on your current debt. No more EMIs on credit cards and no new personal loans. Once the debt is clear, you can buy small things in cash,
2. Dedicate a Contingency Fund of 3000 Pounds:
Start saving some part of your salary and create an emergency fund of 3000 pounds. Use this fund, only when you are out of job or urgently need money for something that is unavoidable. Keep accumulating money in this fund for the whole of your life. You can keep this emergency money in your saving account or in any other liquid plans from where you can take it out fast without any delay and hassle.
3. Make a Realistic Budget Monthly:
We have seen people who make budget at every start of the month and then by end of the month their expenses go out of the budget. The same out of budget expenses put extra stress on their credit card usage and result in more debt. Just make a realistic budget at the start of every month and daily keep track of your expenditures and money left in your account. It will surely check from more debt.
4. Take a Debt Consolidation Loan:
Consolidating multiple debts into a single loan sounds good and it is easy to handle. You wouldn’t need to remember the repayment dates of multiple EMIs. Just take a guaranteed debt consolidation loan from a reliable lending company in the UK and consolidate your multiple stresses into a single stress. There are many lending companies who give guaranteed debt consolidation loans to even those people who have a bad credit history.
5. Don’t Apply for Multiple Credit Cards:
It has been observed that people randomly apply for multiple credit cards just for their lifestyle or to clear the due date of a credit card bill. Transferring money from one credit card to another credit card doesn’t make any sense. Temporarily, it will give you a small relief but in the long term, you will be under the debt of multiple credit cards. Also, it will affect your credit score.
6. Don’t Invest Money by Taking Loans:
Many people do this mistake of investing in financial plans by borrowing money from lenders in the UK. The financial scenario of the UK is volatile and risky. Earning as much as returns that you pay interest on the borrowed loan is not a good investment idea. Also, even if you earn some extra bucks in such investments by taking loans then again it would have a bad impact on your credit score points.
7. Increase Debit Card Usage Instead of a Credit Card:
Start using a debit card instead of your credit card. It would help you in checking your expenditures. The usage of credit card always results in over expenditure. It increases credit card bills too. And, if somehow you don’t pay the credit card bill on time then again negative credit score. Of course, you can earn reward points on your debit card usage as you earn on the credit card usage.
Dream high but don’t let financial stress and debt to chase for your life and family. Follow our debt clearing tips to manage your debt effectively. We are sure soon you will be financially independent and live happily without debt stress.