Few people in the world can claim they have been completely debt-free and have never experienced money worries. Sadly, self-employed people can often feel this impact of poor cash flows and hard times financially more than their employed counterparts.
If you are looking for ways to alleviate debt worries, this post has some tips to help you move forward and work towards resolving any financial worries you might be having.
Identify your Current Situation
As hard as it might be, your first step is to lay everything out in front of you and address your current debt level. Your situation, i.e., how many missed payments you have, your interest rates, and what, if anything, you are currently paying.
Create A Budget
Your next step is to create a budget for yourself. Examine closely what you have incoming regularly and your essential outgoings before you pay back any debts. You need to ensure you are making payments for your utilities, taxes, rent or mortgage, and anything else you require to keep your head above water.
Once you know what you have left or look at your next steps in the future and how you can pay your debts with any disposable income, you may have.
Allow yourself to set limits for buying essentials such as groceries and toiletries, and try leaving your bank card at home to avoid overspending and using cash instead.
Seek Professional Assistance
If you feel like you need professional help with your debt levels, then it can be a help to consult a company such as Strategic Consulting who can guide you through your next steps in resolving your debt levels in a way that works for you without too much stress and strain on your already stretched finances.
Reduce Your Outgoings
Look at any costs that can be easily reduced. Consider checking various packages, such as the telecommunications services. You will save money by ensuring that they only do what you need them to do – nothing more, nothing less. You may also begin searching for bargains at the grocery store and limit your dining out expenses by preparing your own lunches.
Examine each of the expenditures and see if there are any that can be reduced or eliminated.
Add an Extra Income
Consider how you can raise your income to help you cope with your financial difficulties. Here are some possibilities:
- Check with your boss to see if you can work overtime.
- For extra money, sell goods you no longer use or need.
- Look for a roommate.
- Take on a part-time job.
- Create a side hustle
Avoid ‘get rich quick’ scams or those requiring an initial upfront fee as usually, these can be scams or akin to pyramid schemes where those on the bottom rungs make little to no money while those at the top make all the money.
There are many debt relief options for the self-employed to enable them to keep working and meet their financial obligations without falling too far behind on commitments and causing damage to your credit score, which can affect you for many years to come.