Are you overwhelmed by debt that you have no idea how to pay off?
Many people have had debt at one time in life, whether it’s student loans, car loans, mortgages, credit card loans, or personal loans.
Sometimes you realize too late, that your debt is getting out of control, Maybe when disaster strikes or you lose your job that’s when you decide to deal with your debt head-on.
Paying it off can be an uphill task but here are 5 simple tips to help you pay with ease.
1. Don’t Create More Debt
This will help you put an exact figure on how much you need to pay. If you plan to pay off your loans as you continue overspending and adding up your debt, you won’t achieve your debt-free goal.
If possible keep your credit card away from you, carrying cash instead can help you plan your expenditure.
2. Develop a Budget
The foundation of your financial freedom lies in living within your budget. Many people spend more than they earn and end up in a monthly cycle of debt.
Buy items on sale or do a monthly stock of your household items like food, groceries, and detergents instead of every week, you’ll save a few coins. Always control your spending.
3. Drop Expensive Habits
Do you really need another car? maybe going to an expensive restaurant every weekend? or that expensive dress you saw online?
These are just examples of unnecessary purchases to reflect on before you spend. You have a budget now stick to it.
It’s not a bad idea to treat yourself once in a while. A nice dinner in your favorite restaurant doesn’t have to be expensive, but cooking your favorite meal in the comfort of your kitchen is not a bad idea either.
4. Start a Side Hustle
Earning extra cash makes it easier to pay off your debt. Use your skills and talents to make more money. Maybe you are good at painting, or DIY projects, create and sell them on online marketplaces.
When you have extra hours, you can take up part-time jobs like mowing yards, babysitting, cleaning houses, pet walking, operating an Uber if you have a car, or working online.
5. Consult a Credit Counselor
Always ask for help. The credit counselors will help you create a debt repayment and management plan and will negotiate on your behalf.
After listing down all your debts from the smallest to the largest, decide on which one to tackle first. Start with the small debts while making minimum payments on the big debts.
Bottom Line
Spending less, earning more, and saving more will help you achieve your financial freedom. It won’t happen overnight but with the right financial management, it will take a shorter period than expected.
Remember all the money earned from side hustles and saved from the budget plan should be directed to the debt repayment plan.