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Being in debt is something that no one likes to experience, however, it is easy to find yourself in this position. It only takes an unexpected expense or a miscalculation to find that you are on the back foot. It is important that you don’t bury your head in the sand if this situation arises. You need to take the necessary steps to pay off your debts as quickly as possible. It can be difficult to know where to start, which is why we have put this post together.


  1. Be sensible with the money you have got – The first thing you need to address is your current spending habits so that you can be sensible with the cash that you do have. You will only find yourself getting into deeper and deeper water if you don’t get to grips with where you have gone wrong. Prioritise your bills, for example, any properties first, utility bills, and so on.
  2. Explore bad credit accounts – It can be very difficult to get any type of credit when you are in debt because your credit score will have been negatively impacted. This is why it is a good idea to explore bad credit solutions. These will enable you to manage your day-to-day finances while also helping you to rectify your credit score in the process.
  3. Create a debt payoff strategy – Next, you need to decide how you are going to pay off your debts and when you are going to have them paid off. It is important to be realistic. If you give yourself a goal that is too high, you are simply going to set yourself up for failure. Choose a strategy that works with your existing budget and won’t overextend you financially. You should really take some time with this; gain a full understanding of your incomings and outgoings every month, and allow for unexpected expenses too. With realistic milestones in place, you will be motivated to keep the momentum going.
  4. Pay off the most expensive debt first – There are numerous strategies for paying off debts, but it is generally advisable to start with the largest debt first. Take a look at the interest rates that are applicable to all of the money you have borrowed, and start from the highest and work your way down to the lowest. So, start by paying off as much as possible every month on the credit card with the highest exchange rate, and then pay the minimum payment on the rest.
  5. Lower your interest rate – Finally, it is important to determine whether there are any options available to you in terms of lowering your interest rate. This can be achieved if you do a balance transfer. Call several banks and find out whether they would lower your rate of interest if you moved your credit card to them. You can save a huge amount of money if you find a lower interest rate for a longer duration of time. But, whatever you do, don’t use the card for new purchases!