Many people think that the idea of reality of becoming debt free is a long far-distance dream, but you can actually do something about it today! Making simple changes means you can get on the path to your debt free future, and the sooner you start thinking about your finances, the sooner you can be debt free. Two debt free tips that you can use today are:
- STOP SPENDING: Obviously we don’t mean that you need to stop spending money altogether, that would be impractical and your financial goals have to be realistic. But the idea is that you stop spending on frivolous items that you don’t really need.
Start small and cut down on one takeaway a week or sacrifice a night out for a cheaper night in. To become debt free you will have to make some sacrifices but think off all that additional income you will have to play with once your debts are paid off.
Now that you have stopped spending you should be able to get a true picture of your outcome. Start to be organised with your finances and understand the true amount of money you are paying out on a monthly basis. Don’t forget to include essential expenses which you pay for with your income, such as rent, mortgage or utility bills, as well as more day-to-day expenditure such as food shopping, prescriptions and petrol costs.
- GET DEBT ADVICE: Sometimes the road to debt freedom cannot be one travelled alone. This is not a bad thing as there are a number of reputable debt advice companies out there who can help you sort your finances and get debt free.
You may find the best way to be free of your debts is through an IVA. This is a legally binding debt solution between you and your creditors and means you can typically be free of debt in 60 months.