Wednesday, July 10, 2013, AM | 3 Comments
Escaping debt can often seem impossible and unbearable. Living in a state in which you owe large amounts of money can bring about stress, depression and poverty. While there are many things that can be done to escape debt, there are also many things that should be avoided.
Some of these things are often suggested by so called “experts” and businesses as great debt alleviation techniques, however they are precisely what you shouldn’t be doing to escape debt.
Payday loaning is perhaps the worst thing you can do in a bid to escape debt – regardless of how much you are in debt by. With excessively high interest rates and a lack of thorough financial background checking, the practice of payday loaning is unethical and can lead you in much more debt than you currently have.
If you cannot pay back your current debt, than you probably won’t be able to pay back a payday loan.
Pay It Back Minimally
You should pay back the maximum amount you can afford to whenever you can pay back a debt amount. So long as you keep aside enough for you and anyone who relies on your sustenance, you should make sure that you get rid of as much of your debt as possible by paying off as much as you can.
Ignore Invaluable Incomes
You must also pay attention to any avenues of potential money that can be made. Look around your house for any unused items that can be sold for a good bit of money and use the money from its sale towards paying back your debts.
For example, exercising equipment can generate over a hundred pounds, and while this might seem like pennies in comparison to your debt amount, it will nonetheless be useful capital – as every penny counts.
Meanwhile, business owners can contact companies such as RIFT and look into whether or not they’re owed any money through tax refunds. Thousands of British businesses a year miss a trick by not understanding that they’re eligible for a tax refund.
While it might help you sleep better at night, you must not live life as if your debt will disappear if you choose not to act upon it.
Leaving your debt problems “for tomorrow” is a common practice done by those in debt, however it will only leave you with more debt – due to interest- and even further problems such as bailiffs and other legal procedures if your repayments are overdue.