Having a debt is serious business, especially since it can drastically alter the way you manage your finances and savings. And while anyone would want no debt in an ideal world, it seems having debt is a natural part of anyone’s financial life. However, while it’s expected for us to accrue some debt in one way or another, we’re not expected to have debt forever. While it’s highly probable for us to get debt, it’s also within our reach to actually deal with any kind of debt we have. Here are some tips to get you started:
1. Refrain from making unnecessary spending. An important consideration here, especially when you want to clear off your debt. You can lay off the excess air conditioning and the cabs for a while, and maybe go for the usual commute. You might also want to lessen the expensive dates outside, and also avoid having to get a new smartphone as soon as something new rolls out to the market. These little changes can make a great deal of help to save money you can allocate to your debt.
Try to take into account everything you have to spend for a month – your utilities and other bills, your food, as well as important payments such as schooling and medicine and even your emergency funds. And then try to consider things you do for leisure that aren’t necessarily important for survival, but add “quality of life.” Try to see whether all of these elements actually contribute to your life, or if any of them can be removed.
If any of these unnecessary spending habits can be removed, try to remove them immediately. Try to lessen nights out or eating out, cook and grow food at home, commute instead of hailing a cab, or even lay off the cable and subscriptions for a while. This might be a sacrifice you have to take in order to finally pay off your debt in the long run.
2. Make changes to your overall debt deal. Another important tip and consideration to pay off your debt much faster is to actually consider talking with your lender about reorganizing your debt. If you think you won’t be able to realistically pay off your debt, talk with them into getting you into another payment system. After all, paying a bit late in a new system is much better than not being able to pay at all. They might just consider this idea if you present your case to them properly.
- The technical process for this
method is called debt restructuring, and the process depends on the lender and
lender, and sometimes from state to state. If you want to consider debt
restructuring, consider talking with your lender about your financial situation
and try to request an adjustment to your payment system. You might be presented
with a plan that modifies your loan to a plan that you can pay for, but with
added interest. This is a risk you have to assess very carefully.
- If you’re just about to file for debt, try to ask them about their options when it comes to money restructuring. Carefully assess the payment schedule you’ll be adhering to, and think carefully about whether you can pull off your payments according to your personal timetable. The reason why debt restructuring is so important for others because unexpected circumstances especially with regards to finances can really affect the way you can tackle your debt.
3. Try paying your monthly dues twice. This might seem like a detrimental idea, especially since the point here is not to get you out of money. However, one of the most efficient methods to pay if a debt quickly is to at least try to pay off monthly dues more than once, should you be able to afford it, and should your lender allow it. This not only makes your payments more flexible, but this can also lessen what you have to pay in the long run.
- Similar to debt restructuring, you
can ask your lender about the flexibility of your debt payments. If you can pay
your dues more than once a month, you can actually fast track the full payment
of your debt. Imagine, just paying two (2) months’ work in a month of any year
can push your last payment back for a month. Do this multiple times in a year
and you’ll be able to pay off your debt in no time.
- Being able to pay off your debt more than twice a month also puts you in a position to fully focus your attention towards your debt. Having money in hand that you’ll reserve for an extended period of time can be temptation to spend.
4. Get another source of income. Regardless if you already have work, or if you don’t have work, try to consider acquiring another source of income in order to be able to pay off more of your debt. You can consider getting a part-time job, a home-based job, or even extra shifts at work to earn a bit extra. This might mean you’ll get a bit more tired than usual – but this at least helps shorten the life of your debt as a whole.
- If you’re working freelance or
part-time, you can get other sources of income by applying for work online or
by offering your services to others. This might not immediately pay much, but
what you earn from here might be enough to support your basic needs and you can
use your primary income on your debt.
- If you already have full-time work, you can ask your supervisor or boss for another shift or more work. You can explain your current financial situation to them, and they might be able to offer assistance in the form of more shifts or more tasks in exchange for extra money.
- If you can, you can also juggle your responsibilities by getting another part-time job you can do before or after your current shift. This can be tiring, but at the same time offer quite a financial boost you can use to pay off your debt.
- If you have work that uses a system like Securitas Epay login, you can at least have an easier time tracking your finances in terms of your income. Secure services like these allow you to have easy access to how much money you’re earning, which easily lets you keep track of how much you can allocate to pay for your debt.
5. Avoid accruing more debt. Perhaps the most important advice here so far is that one of the best ways to pay your debt quickly is to avoid more debt as much as possible. Try not to get another credit card, and try not to get a new car or a new house. Not only will this be difficult because your debt status reflects on your credit score, but you’ll find it harder to get out of debt if you have more debt in tow.
- If possible, try not to get yourself
more debt, as this will bury you in more obligations. When you think you have
to ask for debt to pay off something, try to think if there are other ways to
ask for assistance or support on the matter. Maybe you can sell some of your things,
or get other sources of income. Debt can be a fast way to solve problems, but
it can also be your quick way into a financial burden.
- If you really have to get debt, you can try paying off your smaller debt with a bigger loan. It’s understandable that having a lot of debt to settle can be confusing, so having a big one to pay off instead can be a better option. This can be time-consuming, but this at least lets you focus on a lesser but bigger objectives.
Eliminate Debt Easily? Patience and Planning Are Key
Dealing with debt is never easy, but it’s not impossible. With the above tips, you’ll hopefully be able to have the knowledge to plan for ways to eliminate debt. And while the overall process might take a while to complete, following the tips above religiously should be able to give you an edge when it comes to completely eliminating debt. Always remember that while debt might be a natural part of the financial struggles of life, it doesn’t necessarily mean that you have to let yourself get defeated by the money you owe banks and other institutions. A bit of planning and good execution can definitely get you the kind of financial flexibility you need to succeed.