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How to pay off debt for people in bankruptcy.

How to pay off debt for people in bankruptcy.

Finances are finicky. Paying dues can be daunting for people in bankruptcy. But, there are many steps you can take to slowly work off that pesky debt. If you follow these steps, you’ll pay off your debt sooner than you think. It all comes down to how well you manage your income. To find out more on how to repay your debt timely, keep reading below.

People in Bankruptcy Should Try and Pay More Than Their Minimum Balance.

Paying off more than your minimum monthly payment is a must for good money management. If your credit card payment is $300, aim to pay a little more. This way you’ll knock off debt faster. Even if all you can spare each month is a dime, it will still contribute to clearing the negative balance. This goes for loans, mortgages, and credit cards. Whatever you can tack onto that monthly payment, do it. Over time, it will add up and your debt will disappear much faster. You can even set aside a savings account that you put a small sum of your paycheck into. This way at the end of the month you’ll always have a little bit more to chip in.

Credit Cards – Who Needs Them?

If you struggle with paying off credit cards, it might be time to retire them for a while. Whenever you go shopping leave them at home. This way you won’t be tempted to spend money you don’t have. Moreover, it’s a great way to get back on your feet financially and stop the cycle of perpetual debt. You don’t need to get rid of them forever. However, it is smart to leave them locked away until you are in a healthy financial state.

Just “the bare necessities, the simple bare necessities”.

Those in a financial pinch can often make plenty of room in their budgets by cutting out unnecessary spending. While you don’t want to inhibit your lifestyle, buying a coffee every day might not be practical. You need to judge what you can live without and what brings you joy. For instance, if you love getting your morning coffee from Starbucks, then get it. However, if you have a gym membership only to do cardio on the treadmill, maybe running outside would be a better option? The point is to determine where you can cut back and still find joy. It’s important to remember that buying something to make your life ‘easier’ doesn’t necessarily mean that it makes you happy. Ask yourself: Am I purchasing this because it brings me joy? Or, am I purchasing this out of convenience?

Become a Smart Shopper.

Being efficient at shopping is one of the most effective ways to save money and pay off debt. When you’re in the grocery store compare brands, sizes, and prices. This will ensure that you get the most for your money. If you’re online shopping use a rewards extension like honey. Or, search around the web for discount codes/coupons. Becoming a member of certain retailers allows you to reap the benefits of free gifts and massive discounts. There are plenty of opportunities to save when you shop smart. Additionally, you can ask retail employees to price match items at certain stores. Get creative and don’t be afraid to bring out those negotiating skills.

Buying used or secondhand items is another way to significantly reduce spending. Clothing, furniture, toys, electronics, vehicles, and more can be bought used.

People in Bankruptcy – Contact TransCan Leasing

Paying off your debt isn’t easy, but with some of the right tools & apps, you can do it. It is a slow process but is well worth it for the freedom that follows. Contact us at Transcan Leasing today if you need additional help or if you have any questions. Feel free to reach out to us as we are more than happy to help you during this difficult time. Be sure to check out our other resources in the Transcan Leasing credit education centre.