Becoming debt-free is a noble goal. Not only does it enable you to establish a brighter future, but it can also help you free yourself from stress and worry. This year, it’s worthwhile to take a look at your finances and strategise a way to ensure that it can become a part of gaining your financial freedom.
Here are 4 key things to help you conquer your debt in 2024.
Revise Your Budget
If you haven’t already, now is the time to create a comprehensive and detailed budget. Starting the year by creating a detailed budget that outlines all of your income, expenses, and debt obligations can be a cathartic process, as you can start to reflect on your financial circumstances in a more objective manner.
Thoroughness is key here as you categorise all manner of spending, including both discretionary expense spending and necessary expenses. Through this process, you can identify where to make cutbacks and adjustments so that more funds can be freed up to pour into repaying your debts.
Prioritise High-Interest Debt
As you take stock of all of your debts, it is important to prioritise them based on the interest rates that apply. Those with high interest rates should be put at the top of the list, as high-interest rates accumulate quickly and make them more difficult to pay off.
The more funds you can allocate towards paying off high-interest rate debts first, the better. The sooner these are paid off, the more you will be free to focus on low-interest debts.
It’s also a good idea to explore the possibility of consolidating your debts and refinancing them with a lower interest rate.
Speak To Your Creditors
Many people make the mistake of failing to discuss their financial difficulties with their creditors. This might be due to shame or fear, but the truth is that creditors would rather you find a way to pay off your debts in an easier way than not at all.
As such, many creditors would be willing to negotiate to help you find solutions to repay your debt, such as lower interest rates or extended repayment terms. There might even be the possibility of exploring debt settlement options in certain circumstances.
The key is to communicate openly and proactively with your creditors about your financial challenges so that you can find mutually agreeable solutions that make it easier for you to repay what you owe. This is in the best interests of both you and your creditors, so it is worth exploring.
Seek Debt Counselling
If you are in a significant amount of debt and are finding it difficult to find obvious solutions to your problem, then it is worth engaging the services of a reputable debt counselling agency where professional counsellors can provide you with personalised advice, help you understand your finances better, and walk you through the process of developing a realistic debt repayment plan.
Getting advice and counsel can make a significant difference, as these kinds of counselling services can also provide services like negotiating with creditors on your behalf to provide ongoing support to help you stay on track with your repayment goals.
Start off 2024 on the right financial footing. Find financial freedom by getting help in planning your way out of debt today. Contact us at Zero Debt to get started.