If you are suffering the stress of lots of debt and the bills keep piling up, you may feel like there is no way out of the hole. In the following article I hope I can put your mind at ease and show you that it is possible to be debt free, and you could also become greener in the process.
Save Money On Grocery Shopping
One way I found helpful, that I still use today even though I have no outstanding debts, is to buy lots of certain foods when they are on sale. Ideally, these should be items that are non-perishable such as things that can be frozen including meat and bread, cereals and tinned goods. Stockpile these items and then each month skip at least one big food shop and live solely off the stockpile goods. By shopping this way you could find that you save around 25% on your annual food and grocery bill. This means that you have extra money that you can put to good use for paying off your debts.
Another way to save money on grocery shopping is to make a meal plan and list so that you don’t spend too much money and buy too much stuff that might get wasted. It could be that you will have things left over from one shop to the next, so adjust it every week and then use the money you have left over to put towards your debts.
What Debts Should Be Paid Off First?
If you have a number of different debts with different creditors, you should assess these carefully and work out the one that has the highest rate of interest. This is the one that you need to focus on paying off first. Make the minimum payment required to the other debts and pay extra on the one with highest interest, and then when that’s cleared move on to the next highest one. You will be surprised at how fast your debt is paid off doing it this way. Click this for more information on managing and getting rid of debt.
Consolidation Loans And Mortgage Refinancing Could Make Things Simpler For You
Although the term “loan” may make you shiver with fear, there are certain loans that could make paying your debts off a much simpler process. Consolidating all your debt into one manageable, loan payment not only makes it much simpler as you only have one bill to pay, but they normally come with a much lower rate of interest.
Refinancing your mortgage, if you have a reasonable amount of equity may be the best option for you dealing with your debts. In a similar way to a consolidation loan, refinancing takes all your debts and consolidates them into the money on your house, so that your home is used as collateral against your debt. You need to be careful with this option as if you miss too many payments and default on your refinanced mortgage, you could lose your house. So, work towards getting out of debt and be sure to check out the rest of the eco-friendly tips that will also save you money on the Green Wonder blog.
