Recent economic difficulties being experienced throughout the world have created a number of problems for hard-working people, and one of the most significant is the problem of consumer debt. Faced with stagnant wages, rising costs of living and an increased risk of unemployment, many are being forced to turn to short-term loan-providers for financial relief. However, thousands of consumers are becoming reliant on debt, and that is having a profound effect on their lives. Breaking free from debt is never easy, but taking these ten important steps will certainly help.

1. Don’t Ignore the Problem

The incessant phone calls, letters of demand and knocks on the door will not stop if the problem is simply ignored. Admitting there is a problem and formulating a plan of action is the first step to a debt-free future.

2. Break the Cycle

Payday loans and credit cards can involve people in a cycle of debt that is difficult to break free from. Instead of applying for further loans in order to pay existing liabilities, stopping the cycle of debt once and for all is essential for a brighter future.

3. Record All Expenditures

The struggle with debt often relates to a person’s inability to keep track of their spending. However, an doing so will help you keep abreast of your spending patterns.

4. Categorize Spending

Categorizing expenditure allows people to budget for the essential expenses in life. Have a weekly grocery budget for instance, will help a person to prioritize other areas of spending.

5. List All Debts

It is common for people struggling with credit card and payday loan debt to owe money to two or more different providers. Writing this information down will help with the budgeting process.

6. Cut out Luxuries

Whether it’s that gym membership you pay for but never use or your lavish weekend takeaway meals, cutting out unnecessary spending will deliver surprising savings – freeing up funds for debt repayments.

7. Pay the Maximum Monthly Amount Possible

Living with debt can cause major problems; including difficulty in obtaining a mortgage and securing certain types of employment. Setting aside the maximum monthly amount for repayments will allow people to get their life back on track as quickly as possible.

8. Stay Disciplined

Planning and budgeting is only the start of the process. Maintaining repayments on a regular basis is key to securing a debt-free future.

9. Negotiate a Repayment Plan

Many consumers are surprised to discover that creditors can be sympathetic to the plight of their debt-ridden customers. It is often possible to freeze interest charges and secure reduced monthly repayments through negotiation.

10. Seek Expert Debt Help

If you can’t pay payday loans, you may be unsure or nervous about dealing with several creditors, but help with debt can be sought out from experts. Experienced specialists will often negotiate with your creditors for you – leaving you to start planning a future free from the financial chains of debt.

1st Point Debt Solutions offers debt management solutions to help you resolve your debt problems.  If you require help on your payday loan debt, please visit –

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