Financial strain can hit you at just about any time. If you are on top of your expenses and stick to your budget chances are you’re getting by each month. But if you keep finding that your bills are piling up, it’s difficult to make ends meet, and you’re constantly spending beyond your means, you more than likely have a heap of bad debt to your name.

When you find yourself sitting with debt up to your nostrils it can be extremely stressful and overwhelming! The more debt you have, the harder it feels for you to get started at getting rid of it. Think of someone who is overweight and needs to lose a few pounds compared to someone who needs to lose 50 pounds. The fear of the larger number can be completely paralysing and this is the same reaction that many people have when it comes to paying off your debt.

Cutting expensesThe first step in getting rid of your debt is being aware. Some of us are so scared of the debt that we have accumulated that we don’t even know how much debt we have! Once you know the numbers you can get started and be realistic about your debt repayment goals.

The snowball method has been shown to be the most efficient method in paying off debt, as it brings a little bit of encouragement and motivation along the way. It suggests evaluating your debt, and without taking into account the interest rates on your outstanding debts, start making repayments on your smallest outstanding debt first, while covering the minimum monthly costs of the rest of your debt. Once you have completed repaying your smallest debt in full, move onto the next one in the chain. This method encourages you as you slowly start to see an impact that your repayments are making on your debt.

Once you’re on your way, there are some small things you can change daily to keep your debt from adding up. Use cash instead of your card to keep tabs on your spending and stick to a monthly budget!