While we like to think of ourselves as financially astute individuals, everyone can be struck with an acute period of financial difficulty. This may be because your car has bitten the dust, you may have lost your job or you might find your debts running away with you. As soon as you feel the pinch, you need to reassess your monetary situation, rather than bury your head in the sand. Take a look at these three simple ways that you can get out of a sticky situation.
Consolidate
Forget worrying about all those small repayments leaving your account throughout the month. It can become complicated when you have multiple payments as you try to ensure that you have enough at your disposal to cover the withdrawals. Instead, you can apply for a loan that will consolidate your debts. This allows you to only have to worry about one monthly repayment. This is ideal if you need to be added help to budget for your debts. Consolidating can also result in paying off your debts quicker by paying less interest.
If a loan isn’t for you, consider switching credit cards. A card with zero percent interest on balance transfers means that you can pay off the capital of your debts rather than just the capital.
Think About Selling Up
If your finances have taken a real hit, no amount of debt consolidation may touch your repayment obligations. As such, you may want to consider selling your property and downsizing. This can see you leaving the housing market for a short while with a decent chunk of equity to pay off debts. You might be currently living in a four-bed condo, but you could downsize to a two-bed apartment. If you are worried about the length of time it may take to sell up, why not look into a company like Seller’s Advantage who will buy your home for cash within days. Sure, you might not get the full market value of your home, but you will save money on excess home loan repayments, and you can have the cash in your account within a short time frame.
Side Hustle
If your home is cluttered and you have lots of unwanted items that you haven’t used in over twelve months, it might be time to sell them on. This way, you can invest your time in boosting your savings. Head onto an auction site like eBay and list your items. While you may feel like the items you have aren’t worth much, you may be surprised at just how one person’s junk is another person’s treasure. While decluttering your home, you can take photographs of your items and write detailed descriptions to advertise your wares. Be honest and transparent. Anything second hand will have natural wear and tear so highlight it. Your items will find their value and you can raise some extra funds to help you out of a sticky financial situation.
Budget well, be proactive and follow this guide to help you to revolutionize your finances.
