Five easy tips that can help you get rid of debt quickly

It’s that time of the year again when you might find yourself between a rock and a hard place financially.

You probably had to clear school fees, rent and pump in money into a new project while setting some amount aside for your daily use.

More often than not, your money may never be enough and your insurance may go into arrears and ultimately you fall into debt.

Taking a debt to offset urgent bills is okay but when it drowns all your finances and you are left with no money to save or use, you could be heading into a financial pit.

We look at some easy tips that can help you get rid of debt quickly:

Most people pay off their debts with whatever is left of their budget after offsetting all the other bills, this might work for small debts but not for the larger ones.

While you plan have a time frame as to when you plan to clear the debt and slot it in your budget every month as a major bill.

By now you should be working with a monthly budget that helps you track your daily spending.

To help you manage your finances further and clear your debt, you can strive to spend less than what you budgeted for, it may be difficult at first but you get the hang of it as you go.

Most people prefer to pay off the small debts first and leave the bigger ones for later but in the real sense it should be the other way round.

When you clear the larger bills first, you finish up with larger interests and this helps you plan yourself and relieve some stress.

A part time job will help cater for your daily needs like food and grocery shopping while your main account pays off bigger bills.

When paying off a large debt, dipping your hands into the same money hole for smaller bills can cause a huge dent in your account.

When trying to get out of debt, the biggest mistake you can make is committing yourself to a new loan or taking a fresh loan to offset an older one.

This does not change the situation you are in and you could easily get yourself in financial pit as your debt load gets overwhelming.

Tip: Always consult a financial expert to help you understand your finances and inform you of the plans that can work best for your situation and money.