Climb out of your financial pit

Here are a few steps to help you get your finances back on track.

07:56 24 September 2013

When you have a heap of debts piling up, it can be overwhelming to say the least. You might wonder if there is a legitimate way to get out from under that debt or if you are going be stuck in the same financial rut ten years from now. The good news is that there are steps you can take to try and get rid of the debt.

Remember that if you have a lot of debt, this will be a marathon. It is going to take some time, but you can reach your goals. Here are a few tips to help you get started:

• Make a list of all your financial expenses, and all types of debt. In addition to that, make note of your income and compare the two lists. Do not get too discouraged, even if there is not enough money at the end of the month to cover your expenses.

 

• Scrutinise your expenses to find out if you would be able to immediately reduce anything. If you really want to get out from under your debt, it may require some sacrifices. Comparing your income and expenses will give you an idea of how seriously you need to cut back on your financial expenses.  If at all possible, try to get a little extra after expenses each month. Even a little amount will help.

 

• If you need to free up more money in a fairly quick time, prioritise your debts. Find the smallest amount you owe and send extra in each month to pay it off. Then take the amount you would normally pay on that bill, include the extra you were putting toward it before and pay the next highest bill.