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How To Get Out Of Debt: 4 Practical Tips To Help You With Your Spending Habits

Author Robbin DonaldPosted on
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Sometimes, when people suffer from sudden emergencies and crises, they spend much more than expected. The same applies the week after payday. Most people used to dread and spend their salary in its entirety a week after getting their paychecks. Thus, it results in people using their savings and seeking the help of online loan offers. Before making such a hasty decision, consider getting a debt solution in Singapore first.

When things get challenging, say, a pile of debts or being unable to pay off their debts, that is the only time people actually get help from a debt consultant. When things get tough and rough, that is the only time people generally seek assistance or consultancy. One of the most common questions people ask themselves after loaning is ‘How do I get out of debt?’. This one question can feel akin to walking on a tight rope hanging on two buildings, blindfolded while balancing a heavy load on your back. Yup, it would feel seemingly impossible.

Many people might recognise this feeling, especially those in debt or struggling to make their money last until the next payday. While getting a debt consultancy service is the best way to deal with your financial problems, here are other ways to help you with your spending habits.

4 PRACTICAL TIPS TO GET OUT OF A DEBT

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1. ANALYSE YOUR SPENDING HABITS

First things first! Sticking to your budget is not all about deprivation, avoiding the malls and online shopping, and saying NO to friend invitations, discounts, or your wants. It is actually a way of properly managing your desires and regaining control over your finances. One of the perks of getting debt consultancyis their expertise in handling your budget, evaluating how much comes into your accounts and managing how much is going out.

If you do not have a debt consultant, what you can do is expense tracking. Look back over your last six to eight months of spending, check for the receipts, and use Microsoft Excel or Google Sheets to list all your spending. This strategy can help you manage your budget and get a true sense of your outgoings.

2. PAY OFF FROM HIGH TO LOW

If you have multiple debts, one of the best ways to deal with this is through a loan consolidation in Singapore. It is one way to refinance your debt. What you will do here is apply for a loan for the amount that you owe on your existing debts. Once approved, you must only use the funds to pay off your debt balances, whether from other debt agencies. Then you will pay down the new loan over time.

If you want another way to get out of your debt, consider paying them off in order. Start with the debt balance with the highest interest rates, then pay off the balances with the lowest amount. If you can afford the repayments for loans and mortgages, you may consider this your least priority.

3. CRASH DIETS DON’T WORK

Nowadays, if people are feeling stressed, one of the resorts they could think of is spending. Be it binge-eating, drinking, buying a new pair of boots, hoarding some clothes, seeing the most recent movie, or stress-spending. If you are considering a debt solution in Singapore, one thing you should avoid is small treats. Attempting to avoid all this stress-spending is not realistic. Crash diets, though, can be helpful in ensuring you stick to a repayment plan, but it does not generally work. Instead of doing this or limiting your expenses, you may want to seek a debt consultancy service.

TAILOR-YOUR-ONLINE-LIFE

4. TAILOR YOUR ONLINE LIFE

Women live a constantly sold dream lifestyle. Without a debt consultant, you will need to make things easier for you. Remove as much temptation as possible. Tailor your social media accounts and resist the urge to online shopping. You may unfollow clothing brands, mute fashion influencers who constantly fuel your itch to buy, or unsubscribe from marketing emails. Be it on Instagram, Facebook, YouTube, TikTok, or where else, unfollow them. The best way to beat the urge to buy is to unfollow these influencers and brands. You may replace these accounts and follow a financial coach, a debt consultant, or a money advisor, such as the following:

5-INSTAGRAM-ACCOUNTS-TO-FOLLOW-FOR-FINANCIAL-PROBLEMS

1) @frugal_me_free

This Instagram account helps its followers with their personal financial problems, dealing with their debts, some cost-of-living tips, how to keep track of your expenses, and gain control over your finances.

2) @go_fund_yourself

Alice Tapper, a debt consultant, handles this Instagram account, talking about money and finances. She will teach you the importance of money and how it affects the decisions people make in their lives. This account can also guide you on budgeting, saving, spending, and investing.

3) @mrsmummypennyuk

Another debt consultantand personal finance advisor to follow is Lynn Beattie. She writes and provides tips on making simple financial choices to help her followers save money. She makes a realistic budget on her Instagram account.

4) @wannabedebtfree

This debt consultantaccount also shares advice on living a debt-free life and proper budgeting. The best thing about her Instagram is that she fills it with empowering, motivational, and powerful quotes about personal finances. If you are looking for a way to inspire yourself to spend less, you should not miss out on this account.

5) @katiesaves

Katie, a money blogger and debt consultant, also shares money-saving tips on her platform. She always guides her followers in living a debt-free life. On her Instagram account, you will see some recommendations, hacks, pieces of advice, checklists, how-tos, and posts about her personal experience towards a debt-free journey.

THE TAKEAWAY

Most people are afraid to pay off their debt balances because of judgement. Muster up the courage and remember, the person on the other end of the phone is also a human, which means they can also make mistakes. A debt consultantor other people working in finance have money worries themselves as well. If you are planning to borrow or loan, always consider your options and thoroughly research beforehand. As soon as you find the need for a loan, immediately seek a debt consultant and discuss your debt solution in Singapore.

Are you interested in consulting a debt consultancy agency? Debt Aid Singapore can lead you toward a debt-free journey! If you need some assistance, you may call them at +65 9382 1253 on WhatsApp or drop by their site to book a 1-hour personalised consultation.