Did the pandemic hurt your finances? You’re not alone. Millions of Americans lost their jobs and found themselves using their credit cards more often. If you currently have an abundance of debt from several sources, you’re likely living with elevated stress levels and a reduced quality of life. Thankfully, there are effective ways to reduce debt and remain debt-free.
Credit Card Debt
If you had to use credit cards to get you through the pandemic, you may have racked up thousands of dollars in unwanted debt. That’s a tough spot to be in and it can cause a tremendous amount of anxiety. Fortunately, if you currently have excessive credit card debt, you can reduce it.
One of the ways to get rid of the debt if you have it across many cards is to apply for a consolidation loan through a company like Gulf Street Advisors. The professionals at the company will give you a loan to pay the balances on your cards. Then, instead of worrying about several payments a month with varying interest rates, you will have one payment with a single rate.
Poor spending habits can lead to financial difficulties. You may not realize how much eating out is really costing you. If you spend $50 weekly on takeout, that adds up to $200 a month and nearly $2,500 a year. That is money you could use to pay down debt so you are able to live comfortably now and in the future.
Taking Control of Your Finances
A simple tool called a budget can get you back in control of your money. It gives you an unobstructed view of your finances, like what you owe out and how much you bring in. With this information, you can set achievable goals, reduce debt and adopt a new appreciation for your money.
Anyone can create a budget that works. The key is to stick to it. You will have challenging moments where you want something. However, you’ll use the budget to keep you on track.
Heading to the grocery store without a list is a recipe for disaster. Before you go shopping, create a comprehensive list that includes everything you need. It’s also beneficial to check the prices on several of the local stores to enjoy additional savings. You may need to visit a few stores, but the savings are well worth the invested time. Another way to save on food is to buy store brands and use coupons when available.
There’s nothing wrong with wanting nice things. However, you cannot go into debt to achieve them. For instance, your car is acting up and becoming unreliable. You own it outright and are considering buying a new car. While a brand new car will provide reliability, it comes with payments.
Instead, take it to a body shop to see what’s wrong and the cost to fix it. If they can repair it for a reasonable amount, you’ll have your transportation back without increasing your debt. If the repair shop finds many things wrong, then start looking at your options. If you do end up needing a new car, make sure you shop around for the lowest payments and interest rate.
Taking on Part-Time Work
One sure way to reduce debt is to increase your earnings. Taking on a part-time job will allow you to allocate more money towards loans and revolving credit. Drive for Lyft, Uber or deliver food for Grubhub. If you prefer to remain at home, there are several job opportunities online. Freelance writers, editors, tutors, web design and customer service representatives are a few of the common offerings.
Debt can cause pain and suffering mentally, physically and financially. If you’re tired of debt controlling your life make changes. Create a budget, curb wasteful spending, and look for ways to spend less each day. Speak to a professional at a debt consolidation company like Gulf Street Advisors if you owe a lot of money and figure out what options are available to you. Before you know it, you’ll have less debt and regain control of your finances.