Making ends meet is all about having enough money for what you need. Unfortunately, in today’s modern world, ends don’t always meet, and we can often find ourselves in a position where we end up in debt. However, even if you are in debt, all is not lost, as there are some smart suggestions for dealing with debt that you will find below.
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Don’t panic
The first thing to do when you find that ends don’t meet and you are in debt is not to panic. Yes, debt can be difficult to resolve, but you are certainly not alone. Indeed, 43% of Americans have some sort of debt, which means it’s not unusual or uncommon, so don’t panic – there will be things you can do to improve your situation.
Don’t let shame get in the way of a solution
You also need to make sure that you don’t get stuck in the feelings of shame that being in debt can bring up. This is because these feelings can really stop you from seeking the help and resolutions you need to move forward with your life. Indeed, many debt resolution organisations like the one run by Alex Kleyner make a point of not only offering clear and helpful advice, but also doing it in a non-judgmental and empathetic manner. In turn, this helps to alleviate the emotional burden of being in debt and helps people access the support they need.
When you have a solution, stick to it
Whether you work with a debt relief agency or you come up with a plan yourself to get out of debt, be sure to be consistent with it. That means doing what you have planned every month until your debt is paid down. If you do find yourself in a position where you can’t fulfil your monthly debt goals, be sure to contact your provider to let them know and see if they can pause your account, give you a month’s grace, or even lower your payments.
Tighten your belt
Another way to deal with debt is to respond to it by tightening your belt or cutting your outgoing expenses. By doing this, you can have more money to pay off your debts each month.
However, you must do this in the most realistic way possible; otherwise, you risk failure. For example, if you cut out all the fun from your budget, you will make it very hard to stick to in the long term. Instead, it’s much better to follow a more reasonable budgeting plan like the 50/30/20 plan, which not only allows for things you need but also things you want as well.
Maximise your income
In addition to reducing your outgoing spending so you have more money to pay down your debts, maximising your income can also be helpful. There are several ways that you can do this, including selling things that you no longer use from your home or wardrobe, and taking on a side hussle.
The great thing about a side hustle is that you can choose something that you enjoy, and make it feel less like work. For instance, if you love art and drawing, how about taking on commissions or selling products you have designed online?
