20 Essential Tips for Blacklisted Consumers to get out of Debt
Are you feeling stressed and concerned about paying your debt? Have you been told you are Blacklisted? Take a Chill Pill and relax; here, you’re going to learn how you can get rid of all your debt and can live a relaxed life.
Paying off debt can be frustrating and exhausting. That is the reason why credit clearance is out of the question for many. No doubt, it is not easy to get out of debt, but it is not impossible at the same time. For blacklisted consumers, it might take a bit longer to get cleared. If you have made a decision and will stay focused on your goal, then no one can stop you from changing your life.
Before moving forward, let’s have a look at some of the reasons why you should get out of debt.
Why You Should Get Out of Debt?
Less Stress in Life:
When you find yourself in debt, it is without question the major source of stress in your life. You will always remain worried about paying your debts. You will unfortunately always experience negative thoughts. Thoughts like what will happen if you lose your job, or you get unemployed will make your life stressful. Getting rid of your debt eliminates extra stress from your life. Reducing this stress will lead to better mental and physical health.
Better Financial Security:
Debt can be a real danger to your financial security. A substantial percentage of your income wastes in debt payments every month. These debt repayments are a contributing factor why you can't put money aside for savings. When you pay off your debt, you’ll be able to use your earnings for future planning. This ability to plan better will help you to become stable and independent in your finances.
More Freedom over Spending:
Many people can’t afford to buy things because of their debts. Being debt-free, you have more freedom to spend your earnings on the things you enjoy the most.
Better Relationships in Life:
Studies have revealed that living with debt causes many negative emotions. These emotions include anger and depression. These negative emotions affect your relations with your family and people at work. After paying off the debt, you will be a more satisfied and happier person, which will make your relationships better with your spouse, kids, friends, co-workers, etc.
You may have your grounds to get out of debt, but these are some of the reasons that can motivate you to escape from debt.
A Better Credit Score
Being over-indebted and having a lot of debts will affect your credit rating and this will show in you having a low credit score. Consumers who are in debt tend to live off credit to survive and will max out credit and store cards. This maxed-out credit and store cards will harm your credit score.
On the positive side, once these accounts get paid off your credit score will almost immediately show an improvement.
What Do You Need to Get Out of Debt if you are blacklisted?
As we’ve already discussed why getting out of debt is important in life, now you may be wondering how to do it. We have compiled a list of actions that should be part of your strategy to eliminate debt from your life.
Believe in Yourself That You Can even if you are blacklisted!
First, you need to realize that you’re not alone who has debt and who is blacklisted. There are a lot of other people who have already paid off their debts bigger than yours. So have faith and believe in yourself that you can also find yourself debt-free one day. Staying positive will give you the necessary motivation and courage to take the necessary steps towards a debt-free future.
Write Down All the Debt You Have:
Then, you need to assess your financial position with all the debt you have. You might be shy or afraid of the obligations you have but living in this guilt may make your position even worse. From smallest to largest, list down all your debts. It will help you to have a clear picture of what you owe and what your interest rates are.
Once you know how much debt you have, then you need to calculate your debt-to-income ratio. It means comparing all the debt with your annual income. If your debt is too high to manage, remember, and focus that there are many people with more debt than you and from today, it is going to go down.
Change Your Behavior:
If you want to get out of debt, it is important to change the old behaviors that got you into debt. Consumers get into debt because of wrong approaches towards different situations. But what you have done in the past doesn’t matter, what matters is that you won’t let that happen again. Even if you hit the jackpot, it will not help you to get out of debt if you don’t change the behaviors that got you into debt.
For instance, if you took a loan to survive financially after having to pay for an expensive car repair, once you manage to get rid of that debt, try to work on an emergency fund and save something for a rainy day.
Earn More Money:
It is obvious that if you want to get out of debt, you must earn enough so that you can survive and pay down your debts. Currently, if you’re not earning enough money to pay off the debt, try out the following:
Start A Side Business:
When your income is not enough to fulfil your financial requirements, starting a side business or part-time job might be a solution. But starting your own business is never so easy; you must have some experience or knowledge of the business you’re planning to start. Despite all this, it is always a great option to bring extra money in your pocket. To easily start a side online business, you may want to consider a ready-made online store for a fraction of the cost. E-commerce developments
Selling Unnecessary Stuff:
If you have some stuff that is collecting dust in the garage, sell it to pay down your debts. If you have two cars, getting rid of one car can save you thousands of rands each year. You can also sell your extra household items on online platforms to get some quick cash. Be disciplined and use the proceeds from the sale of the goods to pay your debts.
Look For Hidden Income:
There are always some hidden opportunities around us through which you can earn a handsome amount of money. But people get shy or reluctant and don’t make use of these earning opportunities. Like if you’re good at some skills, you can make some extra money by teaching it to others.
Spend Less:
Earning more won’t help you in paying down the debt if you don’t cut your expenditure. In most cases, people get into debt because they try to get everything they want, even if they can’t afford it. You need to spend less and save more money to pay off your debt. Try these practices to save more money:
- Try to spend more with cash instead of credit.
- Stop expensive memberships i.e. gym memberships and DSTV memberships until you pay off your debt.
- Say no to smoking and drinking, it will not only save you money but will also have advantageous effects on your health.
- Focus on your shopping and always put non-essential purchases on pending if possible. Look out for specials at certain shops and only buy cheaper no-name brands until you are out of debt
- Try to avoid spending on expensive hobbies.
- Stop eating at restaurants more often.
- Stop making more investments until all debts are repaid in full
- Tell your family that you have a limited budget and convince them to cooperate in this.
- Limit electricity usage and excessive water usage. These saving practices will not only assist the country with its limited resources but will reduce your utility bill.
- These are some of the practices that help you to save more money, which you can use to pay off your debts.
Debt Counselling Can Help You to Get Out of Debt:
Sometimes saving money isn’t enough, you may need financial guidance to get out of debt. Debt counseling is designed to assist over-indebted consumers who are struggling with debt repayment. Debt Counselling is a regulated process to get you out of Debt.
Once your application gets approved and you come under Debt Counselling, your assets will be safe, and your creditors will be unable to harass you anymore by taking legal action. The debt counsellor will negotiate with creditors on your behalf to agree on the lowest possible interest rates.
If you want to learn more about Debt counselling, which is also known as Debt Review.
In Conclusion:
Educating oneself in getting out of debt is a wonderful way to get out of debt, but without professional assistance, it will remain an extremely daunting task to complete. Debt Counselling was designed to easily assist consumers to deal with debt. Blacklisted consumers find this process extremely helpful.
Regardless of what type of debt you’re in, it is important to get out of debt as early as possible. It will take some time to get out of the debt cycle completely, but once you decide and remain focused on the strategies we’ve have discussed earlier, then you will make your future debt-free in no time. Every second you’re wasting is taking you deeper into financial troubles. So don’t waste any more time, start changing your life now! We offer professional Debt Counselling services, and we offer credit clearance advice, contact us today to get rid of your debt.
Navigate to our blog articles about debt counselling and debt review More information.
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