Today I had to ask for a loan from a relative and this all due to the fact that our car broke down, the tax office had their things sorted and send a huge bill and on top of it all I got fined for a accident that I cannot proof if it was me who caused it. Good gracious where should I get all this money from? Well with lead in my shoes, I knocked on a good Samaritans door. We thought up an arrangement and I will pay it back step by step, bless these good people.
When you're sinking in debt, it's frustrating, stressful and can make you feel like you're carrying the weight of the world on your shoulders. It can be pretty easy to feel as if you will never get rid of your debt, but you can. There are many different things you can do to pay off your debt sooner. Here are some important tips and tricks for the broke and desperate for getting rid of your debt.
Think of the Extra Money You Spend Each Month -
I figured out quickly enough that we had approx. 500 euro less each month after I had to stop sailing and that is a major set back, Although I may not be swimming in cash, chances are you spend extra money every month. You may pay to eat out, go to the movies, purchase things you love, etc. How much money do you spend each month on things like this? If you add up the amount of extra money you spend each month, you will probably be surprised to know how much it really is! If you cut down on your spending each month, you can pay off your debt much faster. For instance, rather than spending 20% of your income, spend 10% on extra things. This way, you can still enjoy the fruits (eventhough it is not easy sometimes.) of your work and you'll be working toward being debt free.
Make a List of Your Debts -
It will help you to pay off your debts if you have all of the information in front of you. Make a complete list of your debts, including what is owed, who the creditor is, what the interest rate is, when the payments are due and what the minimum payments are. If possible, list them in order from the highest interest rates to the lowest. The ones at the top should be given more attention than the lower interest rate bills. So, paying the minimum payment on all of them except for the higher interest rate bills is a good idea. For the top ones, send any extra amount that you can afford. This will help you pay off your debt faster and save money by not paying so much interest.
Debt is anything but fun and can make you feel as if you will never be free again. However, using the methods above, you can pay off your debt and experience a clean credit report once again! Good luck.
For the first time I felt that I was drowning, it’s a hard knock life for us.
The Old Sailor,
