Being in debt can feel suffocating, and as letters and emails begin to pile up demanding the money you owe, your stress levels will understandably rise. These past twelve months or so have been some of the hardest for everyone around the world thanks to Coronavirus rearing its ugly head, and whether or not the pandemic has affected you directly, the idea of getting out of debt can feel so far out of reach.
However, it’s not completely impossible and with these tips, you can look forward to lifting that awful weight off debt off your shoulders.
Here’s how you can get out of debt in 2021.
Keep an eye on your credit score
Now more than ever, those looking to borrow money will need a brilliant credit score.
This score is based on how trustworthy you’ve shown yourself to be with money. While your report might not be good right now, keeping an eye on your score and using the tips provided will not only help raise your credit report, but will help you climb your way out of debt.
You can find completely free services such as Clearscore which will calculate your scores and give you tips on how to take better care of your finances.
Seek legal advice
Sometimes debt can be piled so high that you might not know where to turn.
Even debt consolidation companies can’t offer you a solution and you’re left feeling stuck in the mud. At this point in time, seeking legal advice from companies like Anchor Law Firm to talk about the prospect of bankruptcy may be an option to consider.
You’ll be guided with sound legal advice from the start, so it’s worth talking to them sooner rather than later.
Ask for payment holidays
If you’re struggling to keep up with mortgage and credit card payments, you can ask for a payment holiday to give you enough time to build up some more money.
Thanks to the pandemic, many lenders are offering payment holidays to give their customers a grace period to build up cash. If you’re worried about being unable to make payments due to a loss of job thanks to the pandemic, take the time to speak to your lenders about your situation.
They will help in as many ways possible to come up with a solution that suits your financial status.
Eliminate unnecessary expenditure
Finally, we’re all guilty of signing ourselves up to unnecessary things that cost us money each month such as a magazine subscription or a TV streaming service that you don’t use.
Take the time to go through your outgoings to see if there are any expenditures that you could either cancel or put on hold until your financial situation is looking brighter. You could free up hundreds each year to put towards paying off your debt.
As you can see, beginning the process of getting out of debt doesn’t have to be difficult. Follow these steps to be on your way to being debt-free in 2021!