Sometimes, debt is really an indispensable thing in life. Instead of getting it away, people should face with it and see how we can manage and solve it to make our life free with it. In a family, there are some couples in which the woman let their spouse to manage and get a plan to pay off debt. However, as a couple, both of you should be together aware of it, get to know what we are going on and start building a plan to pay off debt and make room for your life.
And if you are a woman, the more you involve in family finance, the better result your family may obtain. Men has a tend leaving it to their partner as they have a big awareness of their carelessness. Woman used to have a big strength to manage and deal with this matter. So let’s get started to figure out the most effective ways to help each of us pay off debt and make room to develop ourselves!
- Get a plan and try to pay more than a minimum payment on certain periods
Once you have debt, there is no way that you need to arrange your expenses wisely and pay your debt with at least a minimum payment on certain periods accordingly. Whether you’re carrying credit card debt, personal loans, or student loans, one of the effective ways to pay them down sooner is to make more than the minimum monthly or quarterly payment.
Doing this way will not only help you save on interest throughout the life of your loan, but it will also speed up the debt payoff process. To avoid any confusion, you need to make sure that your fixed loan amount before you get started without any prepayment/ penalties. Also, you need to figure out with the credit card or debt owner how it is going on if you can pay more than a minimum payment? Can your interest be reduced or whether you have any other benefits/advantages?
- Choose one payment method and try sticking with it
There are various payment methods spreading out on the Internet to help users on how they can apply and calculate their debt payoff. However, I highly recommend you guys to try debt snowball method which you can use together by paying more than a minimum payment monthly.
Firstly, you may need to list all of the debts you owe from smallest to largest.
Throw all of your excess funds at the smallest balance, while making the minimum payments on all your larger loans. Once the smallest balance is paid off, start putting that extra money toward the next smallest debt until you pay that one off, and so on.
Time by time, your small balances will be got away one by one, freeing up more dollars to throw at your larger debts and loans. This “snowball method” allows you to pay down smaller balances first — logging a few “wins” for the psychological effect — while letting you save the largest loans for last.
If you don’t want to apply this method, you can discover other ones which can be fit to your context, your financial situation and debt payoff resources. No matter your method is, the problem is you can choose the reasonable method and stick with it until your debt is free up.
- Look for additional part-time or freelancer jobs to make more profit
Everyone always put their all effort for a fulltime job at the office. Well, it is totally good as that is the main profit source to help them get debt payoff. However, have you ever thought to figure out various sources to help you earn money instead of just putting your head to a fixed salary monthly?
I know it’s not easy to find additional incomes as your effort has limitation and your time has not allowed you to do what you wanna do. But let’s think out of the box. Focus on doing your main job as fast as you can, it is certainly that your result has been qualified. Once you have available time, brainstorm some job ideas that related to online business, digital business or blogging. These types of jobs allow you to do remotely and whenever you can that help you to find additional incomes. Be active, don’t sit at one place and hope that money is coming to you as a magic. Any effort is gonna exchanged by your hard work, sweat or even tears.
- Temporarily live with tight daily expenses
Tight your daily expenses are not gonna easy if you are familiar with widely spending before. However, if you still continue with your spending habit, your debts are even higher and higher. If you really want to pay down debt faster, you’ll need to cut your expenses as much as you can. With this strategy, you’ll cut your expenses as low as they can go and live on as little as possible for as long as you can.
Don’t worry that this strategy is only meant to be temporary depending on your debt amount, your current situation and what debt payment method you are applying. Once you’re out of debt — or a lot closer to your goal — you can start adding discretionary spending back into your monthly plan.
- Negotiate with credit card organizers on lower interest rates/payment due date
If your credit card interest rates are so high, you may need to do something to negotiate with the credit card organizers or debt owners by your all effort.
Believe it or not, asking for lower interest rates is actually quite commonplace. And if you have a solid good history of paying your bills on time, there’s a good possibility of getting a lower interest rate.
If you cannot negotiate to reduce your interest rates, you can ask help from your friends who have experiences of negotiation, financial knowledge or even some apps. These apps gonna help you review your purchase history to find forgotten subscriptions and other repeating fees you might want to cut from your budget, and it can even negotiate some bills down for you.
- Step away and drop your luxury habits
It will not be easy to give up your luxury habits and live a very simple life. But there are no other ways while paying off your debt. Stop your frequent online shopping, pass by the luxury restaurant once your payment plan is gonna eased. And the most important thing is to throw away your credit card from the wallet. You can always bring them back out once you’re debt-free.
I hope that above six basic ways can gonna help you well to pay-off your debt and get your wallet back to the good balance. It can be your hard time in this period, but once you can make it, you can solve other big issues in your life. I believe so.