5 ways to detox your debt
If it’s been a long time since you looked at your finances properly, then you can bet it’s time for a financial detox.
Just like anything else in the world, your bank accounts build-up toxins, and when it comes to money – these toxins can erupt at any time.
You can avoid this through an easy debt detox, which will also get you ready for the difficult task of getting yourself out of debt. And, yes, this detox is gentle on your system!
Keep a spending diary
Whether you write it out on a scrap of paper, or you download an app to your phone, record every single time you spend money for the next pay period. Sure, spending may not be your cause for concern at the moment, but when you’re serious about paying off your debt, you need to know how much your daily life costs.
And if spending does trouble you, then it’s best to be honest with yourself. Sometimes it is also helpful to note when you wanted to, but didn’t spend so that you can pat yourself on the back for the amount you’ve saved.
Streamline your payments
Some people work best when their principal monthly debits come off their account as soon as their paycheck comes into it. If this is you but you don’t have all your debits automatically set – then take some time to do it; you’ll save a small fortune in late charges over time.
If you’re self-employed and uncertain when money will make it to your account, then make sure to remove auto-debits that could hurt you a lot more than they can help.
Cut one area of spending
If you’re in debt, you’ll need to get out of it eventually, and that means repayments. Now, we’ll never tell you not to live a good life while making these payments, but that doesn’t mean there aren’t areas you can cut. Buy a coffee on the way to the office? Why not try doing it every other day? Can’t stop buying magazines? Skip a few and check out their online options.
Making small, pro-active choices will help you get a kick out of saving (and debt repayment).
Spend half an hour with your financial self
You should check in with yourself weekly when it comes to your money. What makes you feel icky? What will help you to change unhealthy patterns? Often we know the answers to these questions; we simply don’t allow ourselves to be asked. Break that pattern. If (and when) you’re highly in-tune with yourself, spend this time on debt repayment instead.
Call your creditors
Even if you have no money in your bank account that you can use to pay them, call and tell them that. There are a few reasons for this. Firstly, if you call them, they will stop harassing you. Secondly, they will help you to work out a repayment plan if you let them. And, finally, you can avoid extra fees (such as legal charges) if they’ve spoken to you and know you’re working on it.
These few steps will truly help relieve the toxicity in your debt situation – but, these tips don’t make payments for you. That’s something you’ll need to do. But, how much you pay and when you pay it is another story.
Why wait for the next pay period or another phone call threatening legal action? Get moving on your debt today and tonight, you may just have a solid night of rest.
- Negotiate your debt! Yes, you can – and we even have a freebie that tells you exactly how to do it.
- Get your hands on our debt workbook. This’ll help you understand why you feel the way you do about money – and it’ll help you understand how much you’ve got to pay back your debts, and how much you need for living.
- Remember that you’re not alone. Plenty of people are dealing with the same challenges. Feel like you can’t tackle these issues on your own? Get in touch, we can help you get on track.
Want more information on dealing with your finances? Why not take a look at these articles:
And, be sure to let us know what you do when you need to detox your debt? Your tips are sure to help other readers do the same!