Being in debt is a not a great place to be, and due to bad planning many people find themselves starting each New Year in a financial hole. And once you are in a financial hole it can often be very difficult to extricate yourself from it. But there are solutions and as much as you will not be the first person to find yourself in a January predicament after a big Festive Season, you also won’t be the first person to get out of that hole. But how do you do it? Here are a few tips from people who have been there are made it out the other side to tell their story.
Consolidate your debt
Don’t owe too many people or institutions money, rather look to consolidate your debt into one place. To be effective, make a list of all the money you owe, then research interest rates and payment terms and look for a lender who will approve a quick online loan. Once that comes through, pay off the other debt and factor the repayments into your monthly budget. It takes a bit of discipline, but it is worth the effort.
If you simply aren’t earning enough cash to pay for the things that you want, then you need to do one of two things: work harder or find an alternative source of income. In this regard the side hustle is becoming an increasingly popular revenue source for many. Remember that a side hustle is exactly what is says, it is not seeking to replace your real job, it is something that you can do on the side to earn a bit of extra cash. It could be something as simple as delivering pizza or driving an Uber. Or, if you can afford the outlay buying a vehicle that somebody else can use as an Uber. The possibilities are endless… you could model, give extra lessons, work in gardens, coach sport. Whatever it is that you enjoy or are able to do part time; get on it as soon as possible.
If you are not already saving, it is not too late to start. So many people save for the proverbial ‘rainy day emergency’ but that is not good enough. Save for everything. There is no point in only saving for things that you have not foreseen, you also need to save for things that you know are going to occur. The festive Season is a great example of this. It happens every year… you are paid early in December and you have a lot of expenses: gifts, parties, vacations etc. January immediately becomes a very long month is you haven’t saved for these costs.
If money is tight and you are fighting to get out of a hole, then shop smart. Budget, eat in and do not shop when you are hungry. Sometimes you have to make lifestyle sacrifices if you want financial health. Staying home instead of going out, limiting the number of beers that you are going to drink or forsaking dessert at a restaurant are all ways to keep costs down. It is a lot of little savings that are going to make a difference, not just one or two big things.