Get out Of Debt

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Get out of Debt – Starting Today!

Debt has a way of breeding more debt and dragging you into an abyss of constant worry, stress, and anxiety. Simplifying your life means making getting out of debt your first and most pressing priority. Any debt, big or small is not something you should be complacent about.

Accepting that a mortgage is perhaps the one ‘essential’ debt for many who want to their own home and one ‘debt’ many of us can and have to live with.

That being said, Buckingham James are very well placed to advise you on the most suitable and cost-effective mortgage arrangement ensuring you are not paying more per month than you need to be.

For all other types of debt the only way to get out of debt is to confront it head-on. Living debt-free allows you to take charge of your life to create financial stability and even build future wealth. Start working towards these goals with the following steps.

  • Budget

Most of us live on a budget and you probably do as well. However, if you have debts, your budget must make allowances for a certain sum each week or month for paying off debt. This should take precedence over everything else.

The goal is to make sure that you’re regularly and steadily paying off debt without fail. If you do this, you’ll be amazed at how your debts gradually start to dwindle and experience a wonderful sense of relief as the mountain slowly becomes a molehill.

  • Curb expenses

It’s easy to save quite a lot of money by just cutting certain expenses while you’re paying off debt.

We mindlessly fork out money on things that we can often easily live without when our real priority is surely to become debt-free?

Consider cancelling gym memberships if you are not regularly using the facilities. Also consider if you really need that cable or an ‘on demand’ TV subscription. 

Are you buying more clothing than you really need or taking expensive outings? And let’s face it, cooking at home rather than eating out can save you a bundle of money as well.

Shop smartly and take advantage of special offers and discounts and stock up on foods that can be cheaper to buy in bulk.

Take a close look at your weekly food shop. Are you buying the well-known and advertised brand items when the supermarkets’ own brands are perfectly suitable?

We’ve all seen TV programs or magazine features where couples or families have saved huge sums over a year just by becoming savvier with the weekly shop!

  • Delay investing

It’s much better to delay investing if you have major debts to pay off. Settle your debts first with the money you’d ordinarlily put into investments. Once you’re home and dry from debt, you can then plan for future investments with more clarity and peace of mind.

  • Cut up or hide credit cards

If you have credit card debt, don’t make things worse by continuing to use your cards. Cut them up or hide them and pretend they don’t exist. Once you’ve paid off your credit card debt, limit yourself to one or two cards in the future. This will simplify your life and give you more control over your spending.

  • Go minimalist

As discussed previously, the money you save from embracing a minimalist mindset can be significant. And you’ve guessed – use it to pay off debt!

You can easily find ways to cut out unnecessary expenses in your life that could be slowing down your ability to get out of debt. Next, put all the money saved into the repayment of those dreaded debts. 

  • Keeping an eye on your heating and lighting costs is an obvious one!

Rising energy costs is one of the biggest concerns for many. Currently, energy costs are rising at an unprecedented rate.

By applying some simple strategies to cut down your use of heat and power within the home can make a big difference and free up money to reduce your debts.

For example, turn off lights in rooms or hallways which are not being used.

Turn down the temperature on your heating thermostat/boiler or radiators in rooms that are not being used. But if you find that too cold or uncomfortable, consider wearing an extra layer of clothing.

Don’t leave computers or other technology on unnecessarily or on standby – all of which use relatively small amounts of energy but will add significantly to your energy costs.  

Even an unattached mobile phone charger that’s still switched on at the mains socket will use energy and waste valuable money!

Ask other members of your household to become more vigilant and apply care and consideration for the bill payer!

  • Seek financial advice and help

If you just don’t know where to start, seek the help of a debt specialist – there are many who offer free services or go to Citizens Advice. 

He or she will analyse your financial situation and create a customised debt-repayment plan based on your income and situation.

And… talk to us at Buckingham James. We are specialist mortgage brokers and may be able to help you with a debt consolidation plan that could enable you to consolidate most if not all your debt, saving you valuable monthly income and of course the associated stress and anxiety.

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