If you are currently in debt, then you must be very desperate on trying to find ways to at least decrease your debt and ease your worries. Suffering from a financial crisis is definitely one of the hardest and stressful trials one can go through. Not only will it affect your daily life, it will also have significant effects on the people around you. We will lose confidence and self-esteem in ourselves, resulting in a negative outlook on our future. While financial crises are very hard to conquer, it isn’t really that hard if you just make changes to your lifestyle and plan ahead on how will you go about decreasing your debt. It is very important that you face the problem early on, the earlier you try to suppress it, the lesser risk of your debt growing and the higher chances of you recovering as soon as possible. With that in mind, here are 5 ways to decrease your debt;
- IVA Help & Advice
IVA or Individual Voluntary Arrangement is an Insolvency solution that has been growing in popularity in the recent times. An IVA is basically an agreement or contract between you and your unsecured creditors that give you the chance to pay your debt towards them at an agreed rate for a period of time. Meaning, you can negotiate for the most reasonable amount that you can pay to them. IVAs require utmost sincerity and honesty, it is the leeway given to you by the creditors to avoid bankruptcy and further succumbing to your debt. Thus, IVAs are always very advantageous to the debtors as they can forego the interests and other additional fees. On the other hand, it is also advantageous to the creditors as they can get a bigger amount of money compared to the amount they will be receiving from a bankrupt debtor. IVAs are mediated and are administered by a registered insolvency practitioner. There are also IVA Help and Advice that can help you balance the negotiations and make sure that both parties walk away happy and in agreement.
- Decrease Spending
If you are in debt, it goes without saying that you should decrease your spending and expenses. While it is easy to say, it is definitely hard to do. Changing habits is quite hard especially if the change you are going to do is a notch lower than your current habits. Thus, always keep yourself motivated, asking help from your family to control your spending might be a good idea so you can always have someone to remind you about your growing debt.
- Increase savings
Most people only set aside a portion of their income as savings after they have already spent some of it. This practice is definitely wrong, real savings should start once you get your income. The moment you get your income, set aside a portion of it as savings, the remaining portion then must be strategically divided for your daily expenses. This way you will be able to quickly save a lot of money to pay and decrease your debt.
- Debt restructure
Debt restructuring is basically the altering of the terms of your debt with your creditors. Negotiation is key in debt restructuring, tell them that you will not run away from debt and that you need to restructure your debt in order pay them. You can try and ask for shorter regular payments, or a one-time lump sum payment including all interest at due date, lower interest rates or even get a newer loan to pay your existing due loan.
And last but not the least on our list of tips is patience. When dealing with stressful things, it is very important that you remain patience and calm in solving your problem. There is always light at the end of the road, opportunities will always present themselves at the right time. Just keep your eyes open and be steadfast in your battle with your debt.