The light at the end of the financial tunnel

Control your debt better before it controls your life

Having debt is considered normal in the greater scheme of things. For most of us it’s the only way we can pay for our education, homes and cars, or even start a business venture. You may have the best intentions to ensure your loan is paid off within the stipulated time frame, but when mismanaged, debt can severely hamstring your lifestyle, ambitions and future goals.

With the right management you can make debt work for you and use it to highlight your effective money managing skills. This will stand you in good stead with creditors, going forward. So where do you start?

Rework the budget

If you don’t have a budget, now is a good time to start one. If you already have a budget, then you need to reassess and make amends to meet your debt demands. Look closely at what your income is versus your expenses. Very often (not always) there are several things you can cut out of your spending such as dining out or takeaways, unnecessarily high grocery expenses or smarter usage of electricity, water and gas around the house. If you don’t do luxuries then perhaps you can relook at your insurance premiums, bank fees and mortgage repayments.

Negotiate

Loans don’t need to own you. Yes, you can negotiate lower interest rates on your mortgage, credit cards and even your car. Managing your debt also means keeping the lines of communication open with your creditors. Let them know what you can manage to pay off and how much per month. Negotiate figures at every turn. If creditors see that you are making every effort to honour your monthly repayments, they are more likely to be open to negotiations when they see you need the assistance the most.

Prioritise

When faced with lots of bills and calls for payment of those bills, it’s easy to become frustrated at which bills to pay with the little bit of money you do have. Professionals advise you to focus on the more significant debts such as your home and car loans. It is essential to adequately manage these debts closely. But, that still leaves you with smaller debts that may appear of less importance, but are still important nonetheless. So, how could you potentially address all the bills at once?

Consolidate

If you’ve negotiated as best you can, but find yourself still struggling to meet your obligations, then perhaps it’s time to reach for a life boat. Drowning in debt is debilitating on an emotional level and if you can’t see any way out of the situation consolidation may be your best solution.

This entails taking out a personal loan to pay off all your debts, leaving you to only repay the loan every month. The right loan structure could  see you achieving a lower interest rate, more flexible repayment terms, and a working with your income and budget structure.

Get in touch with Yes Loans today. Once you have a firm grip on your finances, you’ll be back in the driving seat and feel like you’re in control again. You can finally manage your money as opposed to your debtors managing your life.