Financial Planners Joondalup

How To Get Out Of Debt When You Have No Money

22 Sep
how to get out of debt when you have no money

How To Get Out Of Debt When You Have No Money


When we meet families who are struggling with debt, we always tell them one thing: “There is a way out of your debt”. Yes, it’s not an easy process. Yes, you’ll have to work hard and be committed to paying off your existing debts without accruing new ones. Many people struggle to imagine how they’ll get out of debt when they just don’t seem to have enough money to do it. So here are a few of the first steps to take if you’re wondering how to get out of debt when you have no money.


1. Make A List Of All Your Debts


The first thing to do when you take the step of acknowledging that you’re struggling with your debts, is to make a complete list of all your debts. And we mean COMPLETE.

Many people who are in debt don’t just have one loan or one credit card; they have multiple debts across loans, credit cards, store cards, overdraft charges, bills or student loans.


2. Work Out Your Total Amount Of Debt


This is probably going to be overwhelming, but in order to effectively start tackling your debts, you need to know how big your debt really is.

Add up all your debts and work out the total debt amount.


3. Speak To A Financial Advisor


After you’ve recovered from the shock of your total debt, (or even if you’re pleasantly surprised that it’s not as bad as you had thought!), make an appointment with a financial advisor that you can trust.

They will be able to assess your income and expenditure, along with your different debts and help you develop a plan to start paying it off. Different debts will have different interest rates, minimum repayments and terms; a financial advisor can help you establish which debts to pay off first and how to cope financially with debts that are going to take longer to pay off completely.


4. Stop Spending!


Don’t forget to stop spending! Your new mantra needs to be “If I can’t afford it, I shouldn’t buy it”. Once your financial planner has gone through your current financial circumstances, they’ll advise you on how to live within your means without resorting to credit cards and personal loans. Cut up your credit cards if you think you’ll be tempted to whip them out the next time you’re at the shops.

We’re not saying it’s an easy process, and we’re not saying it’s going to be all sunshine and roses, but if you’re serious about getting out of debt, then it will be possible.


If you’re searching for a financial advisor in Joondalup that you can trust, make an appointment with Jacques at LUDA Financial Solutions today. Jacques is a qualified financial advisor in Perth who can help you reduce your debts and make life more manageable when it comes to your finances. Get in touch with us today to find out more about how we can help you to get out of debt.