The 4 Stages of Debt
- And What To Do About Them
Debt Help Guide
Being in debt is not black and white, sometimes we have enough assets to cover debt that’s hardly costing anything, other times we might be paying through the nose for expensive debt with nothing to show for it. This Debt Help Guide will help you to get organised with your debts – no matter where you are on this scale.
This short 10 page debt help guide and action plan aims to help you get out of debt no matter where you are along your jouney and what your personal situation is.
Debt Help Guide - 4 stage action Plan
We all know the basics of paying off debt, “just spend less and save more” but as with the delightful and now frequently disproved dieting advise of “move more and eat less” it simply isn’t that easy!
My aim with this Debt Help Guide, my full tool kit and this blog in general is to help you get organised, to not panic about the size of the mountain you have to climb until you really know how big it is, and even then there are always solutions.
It’s so much harder to plan your journey out of where you are if you are not entirely sure where that is.
Let me explain what I mean.
If for example you have a few credit cards and the odd store card but you don’t know where they all are or what you did with the statements, you just know that they take money our of your account each month. You’re not worried but it bugs you a little that all your hard earned money keeps moving out of your bank account and before you know it you’re stretching your last few $ or £ to make it to payday.
What if you could get all your money organised, know exactly who you owe what to and most importantly HOW MUCH THE DEBT COSTS, maybe you could get some cheaper or 0% debt that would help you pay it all off LOADS faster and reduce how much you pay in interest.
You might absolutely HATE playing with money stuff but treat it like the best part time job you’ve ever had. Just a few hours one day each week could save you soooooo much money over the course of the year. Even if it means you have to spend the first week or 2 calling up the credit card or loan companies to ask for an up to date statement of account and a CLEAR idea of the annual interest rate. Sometimes, if you tell them you are looking to switch over to some lower cost credit, they might even do you a deal there and then on the phone. It never hurts to ask, just so long as you don’t tell them you’re having trouble paying, they don’t like that!
So, step 1 is to know your debts. Download or print off the debt tracker and get to work on what you owe, don’t miss anything out, just get it all on paper (or in excel!) and look at your mountain.
There may be some things that jump out at you here like some expensive debts that are charging HUGE sums of interest every month and a small saving balance that doesn’t pay you anything at all, that could be a nice quick win; use the savings to pay the debt, cher-ching – instant money maker!