Being in debt sucks, plain and simple. Australia alone has a substantially shocking margin of household debt at nearly 125.2%.

Your credit, financial opportunities, and general financial standing take a big hit when you fall into debt – and it is very easy to do.

But being in debt doesn’t have to define you, and you can actually get out of debt pretty quickly.

We put together a guide to getting out of debt quickly and properly as well as how to manage your debt without being completely broke.

Ready for some handy knowledge and to get in control of your debt? Check out our awesome guide!

Being In Debt And How To Get Control

This guide can help you prevent, fix, and manage your debt.

Prevention Is Key

If you need cash quickly and are considering payday loans or credit cards, consider some alternatives before you potential get in debt.

There are a ton of things you can do to get cash quickly without the need for a lender:

Sell your stuff on Craigslist, eBay, or DePop. Look through your closet, garage, attic, and other places in your home for the junk you never use anymore and purge your life of garbage while simultaneously making money.

Pick up a side gig like driving for Uber, freelance writing or blogging, or housekeeping.

Use your savings. The key to this is to replenish your savings as quickly as you can after taking out the money. Saving is hard, but there are

Saving is hard, but there are a ton of resources out there that are ready to help you learn how to save.

Before you try to get approved for a loan or credit card, try these steps first.

Recognize When Things Are Getting Bad

It can often be very clear when your debt has spiraled out of control, but other times it can sneak up on you – and other people will notice before you do.

When credit card or loan debt gets to be overwhelming, it is easy to go straight to denial.

Do you ignore calls from unknown numbers, ignore your bills, and avoid conversations about finances with your partner or family? You might be in denial about the gravity of your debt.

Ignoring debt may seem to work for a while, but it isn’t going anywhere. Your accounts will rack up interest and late payment fees.

You need to snap out of that denial in order to give your debt attention it needs to disappear.

Just as well, if you have a super vague payoff deadline, you may be setting yourself up for disaster too.

Saying you will pay off your debts “eventually” is on any calendar. Make a solid but reasonable deadline for your debts to be paid off and work towards that goal.

Take Action With Little Steps First

Get control first and foremost by looking at all of your balance statements. Make a list of each individual debt you have plus their due dates, minimum payments, and their individual current interest rates.

Pay all of those minimum payments now.

Organize all of your debts starting with the one with the biggest interest rate. With any spare money you might have, try to pay addition money towards your highest interest debt.

As you earn income, reserve a significant amount of your paycheck to paying more and more of that highest interest loan off until the balance goes to zero.

Then, move on to the next ones. This will take a lot of time depending on how many debts you have, but it will work.

In addition to keeping track of your debts, also keep track of your incomes and expenses. Deduct how much money you have to spare monthly and dedicate that money to paying off your debts.

Balance Transfers

Credit card balance transfers are credit accounts with 0% APRs (usually introductory) that are used to reduce the burden of other credit card interest rates. With the balance from this low-interest card, you can pay off your more aggressive debts and combine them into one low-interest account.

Balance transfers can absolutely be helpful. However, it is easy to get stuck in the cycle of using balance transfer after balance transfer to avoid the later higher APR.

This also can apply to payday loans. Payday loans can be a fantastic solution to very short-term issues, but one can get stuck in the cycle of rollovers and high-interest rates if they are not careful.

Remember that moving a balance isn’t the same as getting rid of it. Use this formula for balance transfer card repayment:

Total balance transfer balance / # of months until the 0% introductory APR expires

The result of this calculation is your new monthly payment. If you stick to these payments, you’ll be debt free in no time without having to pay an aggressive APR on top of the debt.

Save, Save, Save!

Saving your money is how you will be able to pay off that debt. There are many ways to save money out there, and you should do your best to making a savings plan that works for you.

On top of saving money to use for debt repayments, try to save additional money on top of that to bulk up your savings account.

It doesn’t have to be a lot of money at all. Start with a couple dollars here and there, then gradually add more money to your savings account and do not spend that money on anything.

The security net of having a savings count and nurturing it until it can hold a substantial amount of money will make you feel safer and proud of yourself as well. When an emergency comes around, you will be both debt-free and prepared.

When an emergency comes around, you will be both debt-free and prepared. No need for a loan or a credit card.

Get Out Of Debt The Right Way

Was our guide to being in debt and getting out quickly and properly helpful to you?

Tell us your thoughts, along with your favorite tips for being in debt and getting out quickly, in the comments below!

Strapped for cash when you need it now? You may be wondering if it’s time to take out an emergency loan. Here’s what you need to know to make a great choice.

Everyone’s been there.

You’re getting along fine and then something happens. Maybe it’s a medical bill you didn’t expect or an emergency dental procedure you didn’t see coming.

Maybe it’s a school trip for your kid they didn’t tell you about.

Sometimes, your next payday is just too far away and you haven’t been able to save for it.

That’s where we come in.

At Cigno, we offer emergency loans for people with bad credit, no credit, or who traditional lenders might have overlooked.

Not sure if an emergency loan is for you?

Here’s a quick guide to different types of emergency loan options and when you should take one out.

1. Credit cards

Credit cards are the option of choice for traditional lenders looking to provide quick access to credit.

If you have one already, it’s a simple matter of accessing an ATM and getting your cash.

Even if you don’t have one, applying and getting one is still an extremely fast option to pay your bill.

May cards even come pre-approved, allowing even quicker access to credit.

There are a couple of benefits to this sort of emergency loan access:

You keep all your financials with one lender,allowing for easier management in the long term
If you already have a credit card, it’s usually the quickest access to credit available to you
If you pay your credit card bill on time, it helps build your credit score and is extremely cost effective

However, there are some downsides to this type of credit.

First, if you need cash right now then a credit card application might not be fast enough.

Second, credit cards have notoriously high interest rates – most hover around 14% and charge compound interest each month. This means that even a small bill unpaid can quickly add up.

For example, if you borrowed $100 at 14% and didn’t pay it for three months, your bill would be $148.15.

A significant increase in cost.

When to use credit cards for an emergency loan

If you already have a credit card and have a plan to pay it back relatively quickly, it’s likely the best option for you.

If your bill can wait a few weeks while you get a credit card, then it’s even better – many options come with one-off interest-free periods, meaning that if you can pay it back within the interest-free timeframe, you can essentially borrow for free.

2. Payday Loans

Payday loans are loans that are given out on the assumption they’ll be paid back with the next pay cheque.

Perfect for those times when your next payday is just that little bit too far, payday loans are the fastest and easiest ways to access credit.

Payday loans have a few advantages over other emergency loan options:

Since they are guaranteed by your next pay cheque, they are usually available to those with bad credit
Because they are expected to be paid back within the week, fortnight, or month, they are extremely quick to access (often within the same day!)
You can get them for very small amounts – usually less than $1,000

These benefits mean that if you’re in a corner and don’t know how to get out, they can be a fantastic lifeline.

Since they’re given based on your income and only for the precise amount you need, it’s more difficult to over-borrow and get into trouble.

Finally, while their costs are higher because the lender is assuming more risk (after all, if you don’t use your pay cheque to pay back the loan,the lender is left holding the bag) there are actually government restrictions on what lenders can charge.

For example, at Cigno our lender’s fee only charges 5% interest on the loan amount.

When to use payday loans for an emergency loan

Payday loans are particularly effective for those with poor credit who can’t access other forms of lending like credit cards or home equity loans.

Specially designed for the small amounts of money that can ease the stress of an emergency situation, they are perfect for quick injections of cash, exactly when you need them.

However, they do carry a higher cost in general than other lending options out there – a premium paid because of their higher lending risk and the ease of lending.

In short, you pay a price for convenience.

3. Home equity loans

Like credit cards, home equity loans usually come from traditional lenders. Since they require a house, you’ll likely get it from the same provider as your mortgage.

Home equity loans are loans that are secured against your house. Basically, it’s a promise that if you don’t pay back the money that the lender gives you, they can come in and take your house to ‘make good’ on your loan.

Because there’s less risk to the lender of not getting their loan back, lenders will lend with a lower interest rate and usually lend more, so you can borrow a bigger amount for less.

However, there are a few catches to consider before you get a home equity loan.

For starters, they take longer to process. Since you’re dealing with a traditional lender, they move at traditional lender speed – slowwww.

Second, you need a house to be eligible. Not only that, you need a house that has significant equity in it to be worth something to the bank if you don’t pay back your loan. This means that the amount you’ve paid off from the mortgage from the principal amount you borrowed in the first place is higher than what you’re asking to borrow.

For example, if you borrow $100,000 for a house and pay back $20,000 of that plus interest, then you can probably get a home equity loan for up to $20,000.

Finally, you need to comfortable with the fact that if you don’t pay back your loan, you will likely lose your house, so the risk is significant for you the borrower.

When to use a home equity loan for an emergency loan

For a ‘need cash now’ type emergency, a home equity loan might not be a viable option because of the slow processing time.

However, for those with the option and the time, they usually offer the best rates for a quick injection of cash.

One popular financial strategy is to take out a short-term, fast loan for the now and a home equity loan for the future. This allows you to cash to use for your emergency, and the pay that loan back with your home equity loan and enjoy a better rate while you find your feet financially in the weeks and months following an emergency.

Wrap up

It’s extremely common to need an infusion of cash due to an emergency. Whether it’s a medical emergency, an unexpected bill, or just a bill that’s a little higher than you thought, it can happen to anyone.

Fortunately, being a little short one week isn’t the end of the world. Credit cards, payday loans, or home equity are all good ways to get the emergency cash you need when you need it.

Are you looking for a quick cash injection? Apply now for up to $500!

In Debt? Here’s How to Take Control of Your Credit Cards