Even on a low income it’s possible to control debt or to get out of debt. Managing your debt is all about taking control of your spending behaviour by changing your mindset. That doesn’t mean it’s easy, of course, but it does mean that if you are determined to overpower this nightmare, you can. Commit to making whatever lifestyle changes are necessary. Start living within your means. If you have to use credit, use it responsibly and draw up a budget and most of all stick to it.
If your debt problem is severe and you are being threatened with demand letters, you need to obtain a full report that shows all your debt. This can be extracted from any of the major credit bureaus like TransUnion, Compuscan and Experian for free once a year and will give you a clear indication of how much you owe.
Here are eight tips that will help you to defeat your debt:
1.Be honest with yourself, track your spending patterns by analysing your bank statements, and draw up a realistic monthly budget that reflects the reality of your situation.