• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • RECOMMENDED BOOKS
  • FREE TOOLS
  • CONTACT US
  • ABOUT

The Fortunate Investor

Investing, Business & Personal Finance For Wealth Builders

  • Save Money
  • Invest Your Money
  • Get Out of Debt
  • Making Money Online
  • Family & Money
  • Taxes
  • Business
  • Retirement
    • Retirement Calculator
Home » 6 Ways To Reduce Your Debt And Improve Your Financial Health

6 Ways To Reduce Your Debt And Improve Your Financial Health

May 28, 2020 By The Fortunate Investor | This article may contain affiliate links. For more information visit our Disclosure

Tweet
Share
Pin
Share
Share

6 Ways To Reduce Your Debt And Improve Your Financial HealthWhat a world it would be if you could wave a magic wand and say goodbye to your debt forever. 

Sadly, we don’t live in that world, and we need to find more pragmatic solutions for handling our debts. 

If you are currently in debt and are struggling to stay afloat and make ends meet, you’ll need to get a strategy in place to reduce your debt. 

Here are six ways that you can reduce your debt while improving your financial health. 

  1. Get To Grips With How Much You Owe

For many people, when they are in debt, it can become very easy to bury your head in the sand and try and ignore it. The problem with doing this is that your debt does not go away. In fact, you lose track of how much you owe when you ignore bank statements and essential letters. 

Stop and take stock. Find out how much you owe and start creating a plan about how you can pay this back. 

  1. Overhaul Your Spending

Overhaul Your Spending 

Next up, you’ll need to start thinking about reviewing your spending. You might not want to face up to the fact that you’re overspending; however, it is essential to take this step. 

Go through your bank accounts and see where you have been spending your money each month. Compare your outgoings with your income and then start to create a strict budget based on what you actually have coming in. 

  1. Cancel Unused Services

Did you join the gym in January and never actually go? If you’re paying for services such as gym memberships or for subscriptions that you barely even use, then it is time to start cancelling everything and freeing up that cash. 

  1. Get Outside Help

Getting out of debt is not easy. Don’t try and go it alone. If you’re struggling, speak with a debt charity, or even with your lenders. 

If your current debt situation seems hopeless, the last resort might be to make a consumer proposal. The consumer proposal definition is that you make an agreement with your lender around repaying your debt in a more manageable manner. 

  1. Consolidate Your Debt

Consolidate Your Debt 

Bringing all of your debts into one loan is a great way to make your financial burden more manageable. 

A consolidation loan allows you to move all of your debt into one loan. That way, there will be no juggling payments, or lending from Peter to pay Paul, and you’ll have a final end date by which time you’ll be free of debt. 

  1. Turn Your Back On Your Old Spending Habits

Once you have paid off your credit card, cut it up, and cancel it. If you don’t have one, you won’t be tempted to use it. 

Review the way that you spend and try and be less impulsive when making purchases. 

Don’t Look Back

Once you’ve repaid your debt, don’t forget to keep your old habits from creeping back in. Be mindful of your spending, and avoid taking out new lines of credit.

  • About
  • Latest Posts
The Fortunate Investor
The Fortunate Investor at FortunateInvestor.com
The Fortunate Investor is the finance half of the husband and wife duo behind this website. Michael's finance and investment advice is rooted in an MBA and 20 years experience as an entrepreneur, banker, and manager in the financial services industry.
Latest posts by The Fortunate Investor (see all)
  • Could Bankruptcy Be Your Way Out Of A Financial Mess? - January 19, 2021
  • Ways to Make Money Online - January 18, 2021
  • Micro Investing Apps: The Best Platform For 2021 - January 14, 2021

Primary Sidebar

Popular Articles

How to Avoid the 4 Biggest Business Risks

How to Avoid the 4 Biggest Business Risks

There are so many things that can go wrong when you run your own small business. You’re on a tight … Read More about How to Avoid the 4 Biggest Business Risks

Startup Tips To Help You Get Started

Startup Tips To Help You Get Started

Starting your own business can be daunting for any budding entrepreneur. It’s about having the … Read More about Startup Tips To Help You Get Started

What You Should Do If You Have An Accident At Work

What You Should Do If You Have An Accident At Work

Sustaining an injury can be a nightmare for many reasons, and it’s important that you know how to … Read More about What You Should Do If You Have An Accident At Work

Should You Save Or Get Credit Here’s The Answer

Should You Save Or Get Credit? Here’s The Answer

When it comes to your finances, you may find that you just don’t really know where to start with it. … Read More about Should You Save Or Get Credit? Here’s The Answer

6 Key Strategies To Enhance Success in Family-Owned Businesses

6 Key Strategies To Enhance Success in Family-Owned Businesses

Did you know that family-owned businesses generate most of the world's wealth? Take the United … Read More about 6 Key Strategies To Enhance Success in Family-Owned Businesses

Footer

TOPICS

SAVE MONEY
INVEST MONEY
REDUCE DEBT
MAKE MONEY
FAMILY & MONEY
TAXES
START A BUSINESS
RETIREMENT

THE FORTUNATE INVESTOR

ABOUT US
ADVERTISE
CONTACT US

The Fortunate Investor focuses on personal finance topics to build wealth. Topics include saving money, investing, managing debt, family and money, taxes, making money, college planning, starting a business, coupons and retirement.

SOCIAL MEDIA

FACEBOOK
TWITTER
PINTEREST
INSTAGRAM
YOUTUBE

Copyright © 2021 Fortunate Investor. All Rights Reserved. | Disclaimer & Disclosure | Privacy Policy | Terms of Service