How To Chip Away At Your Debt Slowly But Surely

By BankBazaar | June 12, 2019

Is debt giving you sleepless nights? We hear you! Debt can certainly reduce the best of us to our knees. But don’t fret! Here’s how you can chip away at your debt slowly but surely!

How To Chip Away At Your Debt Slowly But Surely

How many sleepless nights have you endured with the specter of debt hovering over you while you toss and turn in your bed? We certainly know how it feels. The uncertainty, the anxiety, the pressure, the feeling of utter helplessness.

Debt, especially when it reaches unmanageable levels, can bring even the best of us to the brink of despair and has left many in complete financial ruin. While it may seem like all is lost, especially when you’re incredibly strapped for cash and you’re trying to make ends meet while also servicing your debt, remember that there’s always a way out.

So, take a step back, take a seat and wipe the sweat from your furrowed brow. We’ll tell you how you can chip away at your debt slowly but surely so you can get yourself back on track financially.

Additional Reading: Modern Habits That May Be Hurting Your Finances

  • Scale Back On Your Expenses

If you’re finding the amount of debt you’ve accumulated too hard to manage, then it’s time to scale back on your expenses to the point where you will need to live a hermit-like existence for a few months at the very least.

This will mean no more spending on eating out, movies, gadgets and all sorts of things that eat away at your income. The next time your friends try and drag you out for a weekend binge, put your foot down and say no.

You could even knuckle down at home and switch off electrical appliances when you aren’t using them. This includes lights, fans, your T.V and even your internet router. Cut down on your expenses as much as you possibly can and divert all the extra money you save towards paying off your debts. Sure, you probably won’t have much of social life for a while, but it beats being stuck in a financial hole for the foreseeable future.

Additional Reading: 25 Personal Finance Habits You Must Follow

  • Consolidate Your Debt

If you have a way too much Credit Card debt or if you have a lot of Credit Card debt spread over many Credit Cards then maybe it’s time to take out a Personal Loan.

You’re probably wondering how you’re going to service debt with more debt. Well, by taking out a Personal Loan, you can clear all your outstanding debts at one go. Not only that, Personal Loans come with much lower interest rates than Credit Cards, and you can also choose a comfortable repayment tenure to pay back the loan. This can ease the burden on your finances considerably since you will only have to pay a certain amount every month for a fixed period of time, therefore making it an affordable way to bring down your debt burden.

Additional Reading: Habits Of The Fiscally Fit

  • Cash In On Your Assets

A sure-fire way of paying off your debts is to take stock of all assets that you can sell for a considerable amount of money. This could include your car, furniture, electronic appliances etc. You may be left with just a mat to sleep on at the end of the day, but at least you’ll be debt free and that will give you a chance to start over.

Alternatively, if you have any investments like Fixed Deposits or company stocks, you could consider breaking or selling them to service your debt, although this should only be considered as a last resort.

So, take a deep breath and start getting your finances back on track slowly but surely. It will certainly take some time and effort on your part, but every journey begins with a single step. All the best!

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