Household and personal debt isn’t good. They’re a threat to your personal solvency. If it’s looking like you’re staring a heap of debt in the face, you need to think about solutions for clearing it away. Knowing where to start can be difficult. There are a lot of options you need to consider. Not only that but you may have to use several of them to help your debt situation. Let’s walk through a few suggestions.
Not exactly clearing the debt, but making it manageable. Getting bills upon bills from multiple organisations is tough to handle. Keeping on top of them all can be difficult. That may be part of why your debt has been rising all this time. To put a stop to this, you can consolidate your debt and be good with your money.
What this means is a consolidation company will clear your existing debt, only for you to then owe the debt to them alone. This should dramatically cut down the number of bills you have to pay each month. Not only that but the amount you are being charged per month should be less in total than you were paying through individual bills.
You can either use that money to pay down more of the debt per month or keep it for yourself.
It has to be said that tax back alone isn’t going to clear all your debt either. That said, it can help. The tax system is very complicated and as a result we are charged in brackets. These brackets are based on our yearly earnings.
If you didn’t make enough money to be in the bracket you were charged tax for, you could claim that money back. It may be in the hundreds, or it could end up in the thousands. It all depends on your earnings and what tax bracket you were in.
It could be used towards taking a bite out of your debt year on year. So long as the debt doesn’t increase any substantial amount, you can start paying it down more vigorously.
Sometimes you have to part with things. This could be stocks, or it could be your car. A quick cash injection is what many people need just to pay off or reduce debt. There are a few unwritten rules to selling assets though.
Don’t make a rod for your own back by selling off things you need. If you need to drive to get to work, either find a sure-fire way to get there without the car or just don’t sell it.
Make sure you have a proper valuation of anything you’re selling. If you decide to sell off an old painting you bought, don’t just get rid of it for a paltry sum. Find out if it’s worth anything.
Finally, don’t sell anything that isn’t yours to sell. Debt can make some people desperate, don’t get like that.
While debt locks you in for the long haul, these three ways to help pay it down should hopefully help you pay it down quicker.