If you lost your job during the pandemic, you likely incurred a lot of debt. Getting out from under all of those bills can be both challenging and discouraging but don’t give up. You can get debt free. Here’s how.
1. Face the Music
It’s easy to let your finances get out of hand when you don’t deal with them. Sit down and make a list of all of your debts. Collect your recent bills from all of your loans and write each one down, along with the interest rates of each. List the name of the creditor and the current balance as well.
2. Get a Loan Consolidation
Now that you know how much you owe, apply for a consolidated loan from a company like Priority Plus Financial. These companies pay off your debt, and then you pay the company back at a smaller payment and a much lower interest rate. These types of loans can provide you with peace of mind and also rebuild your credit rating.
3. Pay Extra Each Month
Now that you have one bill each month and don’t have to pay as much, pay extra each time. That way, you’ll pay off that debt much faster.
4. Cut Back on Spending
While you’re at it, look at ways you can cut back on spending. How often do you eat out each week? Do you buy your coffee from a coffee shop? Start cooking at home and make your own coffee. You could potentially save hundreds of dollars each month.
5. Get a Part-Time Job
Look at ways you can earn a little extra money to pay off your debts and rebuild your savings. There are many remote, part-time jobs online that enable you to earn a little extra money from the comfort of your own home.
You’ll never get debt-free unless you create a realistic budget and stick with it. Don’t think of it as restricting your spending, but rather a spending plan that enables you to pay off your debt and build your savings. Make it your goal to set aside 10% of your net earnings into savings. Build an emergency fund that you use only for emergencies, such as car repairs and unexpected medical costs.
Good can come out of a tragedy such as losing your job. This could be the catalyst you need to get on top of your finances and work your way to financial freedom.