Paying off your debt is a long and slow process, which can be frustrating. But if you make small changes to your monthly spending habits, you can speed up the process. You can get out of debt quicker by making simple lifestyle changes.
We all have lifestyle expenses we can sacrifice to help us get out of debt. But it’s up to you to make that decision and change your financial situation. You don’t always have to make big sacrifices. Instead, make a bunch of small sacrifices that will have a big impact.
So what type of lifestyle changes can you make to help you get out of debt?
1. Be frugal
Make it a habit to start spending less. If you can get something for less money, and it won’t have an impact on your happiness, then consider opting for the cheaper alternative. You may need to cut down on expenses and change your daily spending habits. Which could be difficult at first, but you’ll be better off in the long run.
If you start spending, less you’ll have more money to push towards your debt.
2. Downsize your home
Downsizing your home is a great way to free up some cash. If you’re a homeowner, your mortgage will decrease and your property tax, insurance, maintenance etc. will decrease as well. And if you’re renting, lower your monthly rental to free up some money for your debt.
You may be thinking that you need the space of your current home. But you could sacrifice your living arrangement for a short while. Once all you’ve paid off all your debt, you can move back into a bigger place.
3. Check your social life
Socializing plays a big part of our lives, but that can get very expensive if you’re not careful. You don’t have to be completely antisocial. But you can scale back on how much money you spend when going out, traveling, eating out, etc. How much money do you spend on these activities? How much of that can you cut down?
Cutting back on social activities has many benefits. First, you’ll free up more cash that you can use to pay off your debt. Second, you’ll have more time to spend on being productive. Which means, you could use that time to earn more money through freelancing for example.
4. Use your “free time”
There are more opportunities today to make extra money than there has ever been before. That’s because we have technology on our side. If you’re spending your free time in front of your TV or phone, you could definitely give that up for something more productive.
If you’re serious about paying off your debt, use the extra time you have to start earning more money. This will not only help you pay off your debt, but you will also have an opportunity to build and develop your skillsets.
If you want to start making money online, check out pour blog post How To Make Money From Home, in South Africa.
5. Get a roommate
Renting out a room could help bring in some extra cash. Getting a roommate could provide you with extra income, that could help you pay off your debt quicker. If you both decide to share food and general household expenses, that too will reduce your overall monthly living expenses.
6. Make a grocery list
Making a grocery list is one of the simplest ways for you stay within your budget. However, it is important that you stick to that grocery list. It’s far too easy to get caught up in promotions and impulsive purchases that you forget about your list.
Your list is your shopping plan, and if you stick to that plan you’ll never spend more than you need to.
Struggling with debt
If you’ve made these lifestyle changes and you’re still struggling to pay off your debt, you may be in more trouble than you think. If this is the case, you need it may be worth considering professional help with your debt. If you have an income, but would like to reduce your monthly repayments, the debt review process has been highly successful at helping people pay off their debt in affordable manner.
What is debt review?
The debt review process was designed to help over-indebted South African cope financially. This process makes it easier for you to afford all your debt and living expenses. One of the benefits of debt review is that your debt counsellor will provide you with a personalized budget. You can use this budget to learn how to work with money more effectively. Debt review ensures that you have enough money every month to pay for living costs.
You’ll learn how to pay for all your expenses with what you have. From paying off all your debt to paying for childcare, rent/mortgage, groceries, household expenses etc. You’ll learn how to manage your money properly.
One of the greatest benefits of debt review is that you’ll be paying lower monthly debt repayments. Your debt counsellor will negotiate lower repayment fees with all your creditors on your behalf. That way your changes increase of receiving a lower repayment amount. Which will free up some cash that you can push towards your debt.
Why choose debt review?
1. You’ll only make one single reduced monthly debt repayment
Once you’re entered in the debt review process, you’ll only make one single reduced monthly debt repayment. Your debt counsellor will distribute that amount to all your creditors. That way all your repayments will be made on time, every time.
All you have to worry about is making one monthly repayment.
2. Your assets are protected
All your assets will be legally protected from creditors once you’re under debt review. That means creditors won’t be allowed harass you anymore.
Your debt counsellor will take over communications of creditors on your behalf. So you don’t have to make contact with any of your creditors anymore.
3. Lower monthly instalments
Your debt counsellor will renegotiate with all your creditors to reduce your monthly instalments. You can use this extra money to pay off your debt quicker or to help pay other monthly expenses.
4. Learn how to work with money
Learning how to work with money is invaluable. That’s exactly what you’ll get through the debt review process. You’ll exactly how to manage your money with a personalized budget and how that money is being distributed. You’ll learn how to cover all your debt repayments and living expenses with the salary that you receive.
You don’t have to struggle with debt anymore. Debt Rescue has you covered. Get in touch with us today and find out more about the debt review process.
Fill in your contact details below and one of our friendly consultants will get back to you as soon as possible.