Recession is the time when you need to play overly cautious with your finances, and in case you’re still hung up with debts, get rid of all your debts so as to get your financial life back on track.
But before you begin thinking about resolving your financial conflicts, you need to be dedicated to the idea of becoming debt free because it’s a long process which may be a bit painful and strenuous at times.
Here is a simple strategy to help you get out of your debt situation; however the time it will take for you to become debt-free will depend entirely on how big your borrowings are.
A part time job
That is the first thing you need to think about, as increased income is the best way to get rid of your debts. Working seven days a week and that too from morning till late evening, is definitely hard and stressful but then it’s not something that you have to do for a long term.
Doing an extra job even for one year will get you enough money to get rid of some of your debts and begin saving money. And the best part of having a second job is that, you’ll be too busy with your work and won’t have much time to spend on trivialities, like watching movies or spending time at the restaurants all of which cost money.
Cut down on your expenses
The second thing that you need to work on is your monthly expenses, and though initially it may seem tough to cut down on your expenses, with practice the whole thing will become easier. Eating out and buying processed food always turns out to be expensive, so get into the habit of cooking and eating at home.
Electricity is another expensive commodity, and by switching of lights when they’re not needed and adjusting your thermostat to consume minimum electricity can easily bring down your electricity bills. These are just one or two things that we have elaborated here, there are lots of other expenses that you can reduce or even completely eliminate, such as satellite TV, gas, taxi, laundry service and so on.
You can also negotiate on your debts
Did you know that you can always negotiate on your debts? And in case you feel you can’t do this job by yourself you can always hire a debt negotiator. During negotiation you may be able to convince some of the financial firms to forgive or cut down the interest or some extra charges like late fees, due on your debt payments.
Just remember that debt is a big hurdle in your financial growth and the sooner you get rid of it the better it is for your financial future.