/ Your 8 step get out of debt plan

Your 8 step get out of debt plan🙌🏻

Your 8 step get out of debt plan🙌🏻

Getting in debt can sometimes seem like a mystery. It's so easy to get into but yet so hard to get out of. Sometimes we need to declutter our minds and work through a simple plan.

Your get out of debt plan in plain English.

1. Reflect on How You Got Into Debt😮

It shouldn't sound too foreign to ask you to think about how you got in this desperate position. Was it your lack of understanding of credit cards or lack of understanding of APRs or was it simply your indulgence in fast food, nice clothes etc that landed you a county court judgement which soon led to missed payments on your mortgage and eventually bankruptcy and a home repossession.

Considering how you got into debt is your first step in the get out of the debt plan. Without taking time to do this you will unfortunately risk finding yourself back here not too long after you have cleared your debt.

2. Change Your Bad Spending Habits🛑

Now you know what got you in this position, you should now look to avoid those habits. Changing your spending habits is a first step but you should also go further.

This might mean adopting new habits such as budgeting, learning how to save or being much more conscious of your current financial obligations.

3. Figure Out How Much Debt You Have👀

So you have reflected on how you got into debt, changed your habits and adopted new habits, you now need to do the simple task of outlining how much you currently owe and to who. Your first stop will be to look at your credit report which you can do at huuti. Your credit report may not include accounts which you have opened recently so you should check your emails for any recent accounts or simply have a look in your wallet for any new credit cards.

Contact all the different credit accounts you have and find out what your current balance on each account currently is.

4. Decide How Much You Can Afford to Pay💸

So you now know what you owe. Your next step should be to figure out how much you can afford to pay towards all your debts but before this step you should call or write to each lender to see how much they will be happy to take to close your account. Some lenders might want the full balance but if you explain to them that you are having financial difficulty and that you are able to make one lump sum payment to them in the near future to close the account then they may be more willing to accept that.

This is especially the case when negotiating a credit card balance settlement as with credit cards the longer you owe the credit card company any money the faster the amount which you owe rises due to compound interest.

5. Put Together a Plan💪🏻

Put together a debt repayment plan which states how much you will pay and to who. Its not enough having a plan but you should ensure you have a plan that it likely to work. There are debt repayment strategies that are proven to work such as the debt consolidation method, the debt snowball and the debt avalanche. You can choose either or both of these methods and use them as you see fit. You can use our debt repayment calculator to see how long it will take you to repay your current debts.

6. Start Making Payments🎯

Start repaying your lenders and dont miss any payments. In no time you should reach your goal of being debt free!

7. Avoid new Debt🛑

The easiest way to ensure your get out of debt plan works is to avoid new debt. This part isn't rocket science. Just stay far far away from new debts. In any case it is very likely your credit score will be low due to this being a consequence of missing credit repayments so any debt you are offered will likely be a very high APR debt which is offered to subprime borrowers and this will only serve as your path onto more debt.

8. Bounce Back From Setbacks🔥

Getting in debt has other effects on you. You may have lost your friends, become socially reclusive due to lack of money or depressed. You can bounce back from all this. If you need free debt advice then pick up the phone and call the right people.

You may also have destroyed your credit score due to missed payments being recorded on your credit file. You should look to build your credit score by following simple actionable steps.

It may not be smooth sailing on your path to debt freedom. For example, a financial emergency that requires you to cut back on your monthly debt payment for a few months could easily present itself.

That’s ok. Just pick yourself back up with your monthly debt payments as quickly as possible. You may get discouraged in paying off your debt, and that’s natural.

Overcome discouragement and keep your monthly debt repayments on track to avoid losing focus.

We offer a shake off debt plan which comprises all of the above, designed beautifully and built specifically for you. check it out.

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Your 8 step get out of debt plan🙌🏻
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