10 Easy Tips on How to Overcome Debt Quickly
Debt is one of the biggest burdens in a normal life; person having debt is always under pressure and frustrated. Many of people nowadays have debt and if you work hard continuously with a perfect positive plan and approach. Discourage and lack of confidence can take you deeper in the hole, it is always the positive attitude and hard work which leads towards success. It doesn’t matter how much you’re buried under debt you can definitely make it out. Just have the confidence that you’ll do it.
Always remember the reason of being under debt, just like some have study loans, home loans, automobile loan, medical loans, etc. Credit card is one among the main source of being under debt. Always remember that you have given lot happiness to your family by giving them home, a bright future to your child and many more. Whenever you come under depression or feel discouraged remember all these facts and the joy and happiness which you’ll get after being debt free.
Here we have 10 very easy and important tips and ideas to overcome debt quickly:
Making List of Debt on Paper: The first and the most important step of getting debt-free is to make list of all the debts you have. The list should have everything noted down, all of the debt of loans, credit cards, etc. Even the Creditors name, phone number and address; the regular payment, interest, the remaining outstanding balance and any information which you feel have importance. First a smart person prefers to clear the debt of things which have higher interest rates.
Dismiss Credit Cards:
It’s an old saying that, “One who is willing to get out of the hole stops digging it more”. As we all know credit cards are more tempting and also have a high interest rate, which is dangerous for the person trying to be debt-free. Having credit cards also leads to debt, because we also buy things which are not under our budget.
Have Automatic Payments: It is the better way to take away the tension and hassle from you. Just fix it and leave it. You have to just start it and follow it for long. We automate the payment set to minimum amount + little extra. You have to work hard and make budget and discover ways to save on lifestyle expenses. This will also save from the extra charges that you give as late fees and transportation.
Pay Extra Than Regular Payment:
If you truly want to pay off the debt faster you must pay more than minimum amount otherwise you’ll never be able to finish it because it is so cleverly set up like this by the banks. By paying extra we also decrease the main amount and interest on it, it would be easier by every installment as the rate becomes low. It’s the smartest and the easiest way of overcoming from debt quickly.
Cut Down On Expenses: Your expense must be less than savings. The main big unit of the salary should be saved and the rest spent, according to the budget. We can start carpooling, changing lifestyle, talk to family members to have control. Start carpooling or take public transport. Cut down expensive branded items and keep aside the personal expectations.
Increase Your Income: If you want to get out of the debt, you’ll have to increase your regular income. You can switch to another company giving more pay-grade or can take part-time jobs for the leisure time you get. There are many options you can be some creative and make some easy gifts or give some help to someone on his project for some money. You have to work hard and do overtime. Income can also be increased by internet, there are many options provided by just one click.
Reward and Celebrate Even on Clearing Mini-Milestones:
Celebrate whenever you reach a small milestone too (paying 5000 also is a milestone). You can give a small treat to your family members after paying a debt off, you are spending extra money but the important thing is to be accomplished. This is a long journey and when we look behind the image is clear of your hard work and progress. It is definitely very motivating and leads you to the finishing line.
Ask for Best and Lower Interest: Keeping aside your moral values make a call to company to reduce interest rates, no matter the debt is of home loan, credit card payment, car loan or any other. It will surely not work everywhere but will help in some cases. This will help to clear your debts speedily in less time. Seek for every possible ways which can decrease your interest rate, by refinancing or any.
Close Expensive Habits and Cut on Pleasure:
We all have some of the bad habits which are expensive and also ruin our life. Such as cigarettes, alcohol, clubs, etc. It is hard but if you are serious about getting out of debt it would be the best step till now. Never think that what will happen with these small ways, always remind that, “Small drops only combine to make a sea” Or if you have a habit to go out for lunch or drive a luxurious car, cut all these pleasures for some time. If its possible cut off the cable, lessen your phone bill, use less electricity, give creative gifts and many more. This will help a lot.
Stay Away: We all have temptation towards something. Many are tempted towards their local mall or favourite online shop. Many also have habit to go to their favorite restaurants and take beer. It is best to ignore/avoid these things if you are paying debt. If you are constantly spending you’ll get a newer one so, it is best to pay older-ones first. Stay away from all your temptations and favorites, whether it takes long way to home. Move away all these obstacles from you; once you are debt-free you can have it all with more pleasure.
It is easy to ignore debt for a while but when we realize the situation and disaster strikes on face, everything ruins and only failure remains. So, it is better to not to neglect and by taking a few steps forward in time you’ll come to know how easily it can be sorted out. Never keep in mind how much you are dipped under it or how many years will it take to be debt-free. But by just getting some serious steps and hard disciplined for few months/years, one can get a happy and bright future throughout your life.
It is not important that what plan you have made or which steps you are following or what are your strategies of being debt-free quickly. The only thing that matters is how fast you become debt-free and how fast you start living the life which you deserve or you want. It’s the heavenly feeling of being debt-free after clearing all your debt, you must try.