There are lots of methods and ideas you can try, and people you can turn to when repayments deadlines are looming over you. Here’s what you should do.
The first step to take when you find yourself in a debt crisis is talk to someone who knows what they’re talking about. Independent and unbiased financial advice can be vital in finding a way out of the mess you’re in. Go to the citizens advice bureau for this kind of advice, they’ll be able to offer you unbiased guidance.
They won’t be able to offer you a concrete solution to your problems, but they will be able to give you a good starting point. They’ll tell you where to turn to next and set you on the right path. Most importantly, they’ll be able to make sure that you don’t make any further mistakes going forward because that could make things even worse.
Debt consolidation loans allow you to move all your many debts and repayments into one manageable loan. The loan you take out will all go on paying off your existing creditors meaning that all your existing debts will be wiped out by the loan you take out. This will leave you with one large repayment to take care of rather than lots of smaller ones.
This doesn’t always help to wipe out your debts as such. But what it does do is help make your debts more manageable and easy to keep control off. When you have lots of debts to take care of, you can easily miss repayment deadlines, and then the situation can become even worse if you have to pay late fees.
New Income Streams
If you need money, it’s a good idea to think about new ways in which you can find income streams. It might be that your wage isn’t bringing in enough money to the household. If this is the case, you should look at the options that are open to you. For example, if you live near a commuter station, you could rent out your driveway to people looking to save on parking fees.
This also works if you live near a popular sports stadium. Fans are always looking for cheaper places to park on a matchday, so renting out your driveway will be sure to bring you in a bit of extra cash. There are lots of ideas; you just need to sit down with your family and brainstorm the best ideas you can think of.
If you have one immediate deadline that you can’t avoid, taking out a new loan to cover you is an option you should think about. Of course, it doesn’t get rid of your debt problems, but it can help push back your deadline and move your debt to another lender. It’s a good way of avoiding late fees that can easily stack up.
If the debt is only a small amount and it needs to be paid off quickly, payday loans are also an option. Some payday lenders are better than others though, so make sure you use one that is reputable and responsible. The key is to do your research before you take out the loan.
If you don’t want to turn to a conventional lender, it might be a better option to talk to a close family member and see if they can give you the money you need. Borrowing money from family members isn’t ideal because it can cause rifts and arguments further down the line if the money isn’t paid back.
But, on the other hand, there are a number of distinct advantages associated with borrowing from family. First of all, family members probably won’t charge you interest and demand late fees if you struggle to pay the money back. Whereas banks and other lenders certainly would demand these things though.
Making Cut Backs
When you have debt repayments coming up, finding money alone isn’t enough. You also need to make cut backs and think about where you can save money in other areas of your life. There are lots of ways in which you can cut back and save money if you put in the effort and think about it carefully.
For example, you could think about how much you use your car and try to walk or cycle instead of driving. This will save you a lot of money in fuel costs if you keep it up over a long period of time. That money can then go towards paying back your debts. That’s just one example, but there are hundreds of others like it.
Downsizing Your Home
Downsizing your home is a huge step, and it’s probably not the kind of thing you choose to do lightly. But it is something to consider if you have no other options open to you. It can be a sensible thing to do if you have a home that’s too big for you, there’s no sense in paying more for it than you have to.
A lot of older people are left with homes that are too big for them after their children leave home. They could then be left with big mortgage repayments and more space than they really need. Downsizing your home will free up a bit of extra cash that you can use to repay some of your debts.
Selling Unwanted Items
Over the years, we all amass lots of items and possessions most of which we don’t really need if we’re honest. All of this stuff can give you the opportunity to make a bit of cash when you’re in need of quick cash. Even if you might think that you don’t have anything that is worth very much, there is probably someone will be interested in buying it.
One man’s junk is another man’s treasure. Having a clear out will allow you to put on a big sale and raise some much-needed cash. It is only a short-term solution though, and it’s the kind of thing that you can only really do once. But if it helps you pay off your debts, it can only be a good thing.
It can be easy to get isolated and trapped in your debts when you’re missing repayment deadlines, so try to follow these tips and clear your debts quickly.
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