Tips for Getting out of Debt

Many people start off the new year with the idea of getting out of debt. A few months in and those hopes are dashed by mounting expenses — some of which weren’t expected and came as a real surprise.

The good news is that it’s possible to get out and stay out of debt. With a little planning, research, and investigating all options available, you can be on your way toward financial freedom this year.

Here how to get started:

Get to the Root of the Problem

To finally get a handle on debt and expenses, it’s important to first understand why the debt started, and the difficulties involved in repayment of monies owed.

Some people assume that anyone in debt is just living beyond their means. That’s simply untrue. There are many factors that can derail even the most detailed budget.

Most debt situations start with one or two typically unexpected scenarios such as job loss, medical expenses and vet bills, emergency home and vehicle repairs, outstanding loans, and more.

Knowing the base reasons for debt will help you create and implement a reduction plan. Your plan should include all available options, including financial solutions services such as Check on Hold.

Set Clear Goals

As with any plan, it’s important to see the “light at the end of the tunnel” before you even begin the journey. That starts with setting clear, attainable, and realistic goals that you can work toward each month, and what steps you’ll take to accomplish them.

For instance, if your goal is to pay down credit card debt, you might choose to stop using the high-balance card. This way, all payments will count toward both interest and the entire balance, rather than being applied solely to the interest, leaving the balance untouched.

Shift Your Spending Habits

You may have heard people talk about separating ‘wants’ from ‘needs.’ This is important to long-term financial planning.

Simply put, ‘needs’ are things that you can’t live without. They include food, shelter, medicine, child and pet care, and more. By contrast, ‘wants’ are things that are nice to have, but not essential to survival. They include gym memberships, movies, unnecessary travel, splurging on new clothing, and more.

While indulgences certainly make life more pleasurable and interesting, when you’re trying to get out of debt, the focus must always be on paying down your bills and loans.

As previously mentioned, it’s important to live within your lifestyle. That means you should never spend more than you bring in. That stated, there will be times when you need cash fast (job loss, medical expenses, auto crash). In those times, it’s comforting to know that options such as Check on Hold are available. These options help prevent from racking up credit card debt or making unsafe and unwise financial decisions.

Reach Out for Assistance

When times get tough, it’s tempting to just ‘skip out’ on one or two bills for that month. Many people decide they’ll just pay the late fee and be done with it. Unfortunately, missing payments has a major impact on your credit score and your ability to get future loans.

You don’t have to be a victim of past financial decisions or let creditors bully you into paying. Instead, it’s important to know and use all options available to you.

At Check on Hold, we can help you get the cash you need fast. That gives you peace of mind that you’re covered as you focus on your long-term financial goals. With 10 locations across Central Florida, you’re never too far from walking out with cash in hand. Contact us today to get started, or simply drop by.