10 Tips on Getting Out of Debt Quick – GNE Mortgages

Everyone wants to be debt-free. By making certain changes to your lifestyle, you can get out of debt quick even with a low income. However, it requires a lot of dedication, self-discipline and hard work to turn around your current financial situation. Don’t worry, it gets easier over time and your start to cultivate better spending habits. Below mentioned are ten ways to get out of debt quickly:

1. Avoid borrowing money

The first and most important step to getting out of debt quickly is to stop borrowing money. Avoid swiping your credit card often, applying for a new loan etc. The fundamental change is to reshape your attitude towards money. You have to understand the consequences of swiping your credit card or taking out a new loan.

2. Keep a track of your spending

You have to figure out where all your money is going and what you are spending it on. Keep a track of your monthly bills on a daily and monthly basis. Don’t forget to include your repayments while keeping track of your monthly bills. Some of the common ways to track your spending include:

• Use a budget worksheet
• Keep notes
• Keep receipts
• Use free money management apps

3. Establish a budget

Once you have a hold on your spending, it is time to create a budget. Use your regular spending as a guide. Tracking will give a clear idea of where to cut spending. You will be able to easily identify where you are spending too much, including where you can easily make cuts without it affecting your life. A balance between living comfortably and a budget will quickly get you out of debt.

4. Pay more than the minimum payment on a loan

Paying off more than the minimum amount for your scheduled repayments will bring you one step closer to being debt-free. When you establish a budget, you can set a minimum amount that you are putting towards debt each month. Keep in mind, it should be around 20% of your total income. Regardless of your financial situation, you should be able to pay more than the minimum required, if possible.

5. Consider debt consolidation

If you are struggling to make ends meet with little to no income, then consolidating all your debt into a single easy-to-make payment will help you get out of debt quickly. However, you must be careful when it comes to debt consolidation. If you are not able to manage your finances, debt consolidation can leave you worse than when you started.

6. Renegotiate your credit card debt

Most customers are unaware that they can renegotiate their credit card contracts, and can pay out a lump sum amount instead of high-interest monthly payments. This is also known as debt settlement. All you need to do is ask. As long as you maintain a credit score, you have a chance of getting some financial relief.

7. Create a family budget

It is common to see many households have a sole family member responsible for all the household’s finances. If you are going to get out of debt quickly, you need to maintain a strict budget to pay off the debt that the entire family is aware of.

8. Get professional help

If you are struggling to maintain your finances, it can get detrimental over time and cause a lot of strain on yourself and your loved ones. The team at GNE Mortgages can offer professional support to help you take control of your finances and ultimately make you free from debt.

9. Consider a personal loan

Based on your financial situation, you can consolidate your debt using a personal loan. Using your personal loan to pay off the smaller loans will have you one less instalment payment to make each month.

10. Stay out of debt with a detailed budget plan

Life is uncertain and in certain cases, you may not have the financial bandwidth to survive an emergency. This is why it is imperative to have a budget that is flexible to support you in any situation.

Looking to apply for a debt consolidation loan in Mississauga? Please do not hesitate to get in touch with the team at GNE Mortgages today.