A Smart Way to Deal With Debt

Most people would like to be debt free. But with nonstop bills, unexpected life events and the cost of living constantly on the rise, becoming debt free can feel out of reach for many people saddled with crippling debt. The good news is that there are multiple solutions to get you back on track, you just must know where to begin. 

That’s where the experts come in to answer the question so many people want answered: what’s a smart way to deal with debt? 

Understand How Much You Owe

While it can be tempting to bury your head in the sand when it comes to finances, the best way to tackle your debt is by understanding exactly how much you owe and where. 

The first thing you want to do is to make a list of all your bills. You’ll find a helpful tool for this at https://www.bills.com.

These include your mortgage, automobile loans, student loans, etc. Record how much the monthly payment is for each loan and the interest rate associated with each, if applicable. Add all your monthly amounts together to understand the minimum payment you owe each month.

While this seems like a simple step, it’s often the most important in tackling your debt. Having a clear idea of what you owe is instrumental in getting out of debt. 

Figure Out How Much You Can Pay Monthly

Once you understand all your current debts, it’s now time to create another list detailing your monthly expenses that don’t include your debt. This includes expenses such as food, gas, entertainment, etc. While these totals can vary each month, you should be able to come to an average after reviewing bank statements over the course of the last year. 

Once you have these extra expenses listed, compare this with your monthly net take home pay. Subtract your average expenses from your monthly net income. If the resulting amount is less than your minimum debt payment each month, this is good news. You should be able to put this remaining amount towards your overall debt. 

If you subtract your average expenses from your monthly net income and are left with a figure that is less than the debt you owe, then it’s time to get creative and think of new strategies. These include:

  1. Figuring out where you can save – Do you need five streaming subscriptions? Could you cook instead of ordering take for the 10th time in a row? There are many ways to save each month; you just must figure out where you can spend less. 
  2. Increase your income – Maybe it’s time to ask for a raise or to look for an alternative source of income. There are lots of side hustles out there for people looking to earn a bit of extra cash on the side! 
  3. Debt consolidation – Debt consolidation is where you combine all your debts into a single amount making payments more manageable. If you secure a low interest rate, you may be able to pay off the debt sooner than you would have otherwise! 

Find Someone You Can Trust

While you can try and tackle your debt yourself, sometimes it pays to have an expert in your corner from an honest and reputable company. Freedom Financial Network was created to get struggling consumers out of debt in an affordable and responsible way. 

This company was created to have a positive impact on society and make a genuine difference in people’s lives. If you’re interested in getting out of debt and improving your financial situation, this debt relief company will be able to help you get back on your feet. 

Get Out of Debt Today

If you’re interested in paying off your debt, it’s time to get serious about an action plan. Figure out exactly how much you owe, work out your monthly expenses and see if further savings could be made to help you overcome your debt. 

Work with a trusted company like Freedom Financial Network to explore the various options available to your unique situation. No one should be burdened with debt. Get back on track today! 

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