What to do when faced with bad debt

Posted by Chauncey Garduno on March 11, 2019 in Perth News |

More than half of Western Australians more than they earn each month and use credit to bridge the gap. So it’s easy to see how so many people are struggling with debt.

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However, people are forced to confront their circumstances head on due to disasters like a sudden job loss, an unexpected and costly home repair, or a serious illness. These occurrences can knock one’s occurrences off track and you can barely keep up with your monthly payments.

No matter what your circumstances is, being in debt can be a stressful experience. If you signed for a loan, you are obligated to pay it back even if you are in a difficult financial situation.

If you want to become financially independent, you need to have a plan for how you’re going to tackle your debt. One of the best ways to do this is by making a conscious decision to stop borrowing money. It is a big mistake to use debt in funding your lifestyle. This means no more financing furniture, no more signing up for credit cards, no more test driving brand new cars that you don’t have the cash to pay for. Focus entirely on the debts you currently have and develop an effective plan on how to pay them.

Once you have developed a plan, you need create a realistic budget and stick to it. By having a budget, you will know where you go with your finances and you’ll move forward toward your goal. You’ll know whether you have surplus money or deficit.

Organising your debt is essential. You need to determine your debts and map out how to settle them. Make sure that you allocate some of your surplus money to tackle your debt.

For more on how to getting out of debt, read this: https://www.flyingsolo.com.au/marketing/what-to-do-when-faced-with-bad-debt-anz