If you have lots of debts you may feel like it will be really hard to get rid of them. Paying off the debt may just seem like a huge mountain to climb and you may just feel like you cannot even get started. There are different approaches that you could take though which should help you to be able to get it paid off successfully.
A step at a time
It is so important to break it down into smaller steps so that the task does not seem so daunting. Do not think that you have to tackle it all at once because that will be difficult and hard to deal with but break it down. Start by thinking about how much debt you have and what money you have available. See whether you have any savings you can pay some off with and then consider whether you have spare money each month you could put towards it. Then work on, step by step finding ways to repay them.
Set positive goals
It is really important to have a positive attitude towards paying off your debts. You can help to foster this every day by writing down your goal and why you want to achieve it. Think about why you want to be debt free, that freedom of no longer owing money and the extra income you will have as a result of no longer having to pay out so many loan costs. If you remind yourself daily of why you are working so hard to pay off the debt it should help you to stay focussed and positive with regards to your goal.
Concentrate on one debt at a time
It is much easier to tackle one debt at a time. Look at the debts that you have and decide which one you want to start wit. It makes financial sense to start with the most expensive but actually many people prefer to start with the smallest so that they have the satisfaction of paying one off in full more quickly. Think about which approach might work best for you. Of course there may be other reasons for wanting to pay one off first, perhaps because you have ad it the longest and it feels the most burdensome or perhaps if you owe money to friends or family you think it would help your relationship with them if you paid them back first.
Get your Household on Board
Getting your family to help you can make a big difference. If everyone is watching what they are spending and aware that you are trying to cut down it will help. Hopefully they will be less likely to ask you to buy them things and they may spend less of your household budget as well. They may start to look for cheaper alternatives or make an effort to contribute more if they can. Sadly, finances can lead to a lot of arguments within couples so if you can both be working together on trying to reduce your debts then this can have a more positive influence on your relationship. If you are competitive you could even see who can save the most money each month. If this is more difficult for one partner than the other then see who can increase their savings the most month of month measured by a percentage rather than a monetary figure. You can even get the children involved if they agree to change their favourite things to cheaper alternatives.
Give yourself treats
It is important to have rewards as you go through this process. If you are cutting down your spending, then you will probably feel like you are depriving yourself of nice things. Therefore it is wise to make sure that this is not the case. It is worth remembering though that treats do not have to be expensive. It could be that you just have a treat of a day off work, a nice long bath, borrowing a good book form the library or having a friend round for coffee. There are many treats that do not have to cost lots of money.
Try to Earn More
If you can think of any ways to bring more money into the household then this can really help. There are all sorts of things that you could do such as asking for a pay rise, working more hours, getting a second job, doing some online work, selling things you no longer want or monetising your hobby. There are lots of small things that are easy for everyone to do but they do not pay that well. It all depends on whether you really want the money as to whether you will think that it is worth your time doing them.