Paying off your debts can make you feel like you’ve got a weight on your shoulders that nothing can shift. Having this number hanging over your head can be seriously demotivating, but fear not. There are a few virtually stress-free techniques you can adopt to pay off your debts faster and more efficiently. Look at some of the tips here and see how they can help you!
Figure Out a Way to Pay That Works Best for You
There are a few ways you can pay your debts off, depending on what makes you feel the most motivated and determined to get rid of your debts once and for all. Of course, some will say that it makes the most sense to pay off the debts with the highest interest rates first, before moving on to the debts with the lowest rates. This will save you the most money, sure. However, some prefer to pay off the smaller debts first, so that they have less debt overall to think about, regardless of the interest rates. It makes them feel like they’re really working through it!
Consider Consolidating Your Debts
Consolidating your debts could be for you if you prefer the idea of having just one payment to deal with, rather than lots of separate payments. Consider debt consolidation loans if you want to make your debt easier to deal with.
Build A Small Emergency Savings Fund
Many people will tell you that you shouldn’t be saving money while you have debt, as every penny you earn should be going towards your debts. This is only part true. It can be a good idea to build a small emergency savings fund if possible, keeping around $1000 just in case something should happen. You don’t want to feel the need to go back into debt once you’re trying hard to pay everything off!
Pay the Minimum Balance Without Fail
You absolutely must pay the minimum balance without fail, or you run the risk of accruing more interest and even getting into trouble. Set automatic payments up for the minimum balance at least.
Create A Budget
If you’re not living by a budget, then you can’t really direct the cash you’ve earned to the places you want it to go. A budget is simply getting a better idea of where your money should be going each month. Create a temporary budget to start with, downsizing your lifestyle so that you can put as much as possible towards your debts.
Sell Items You Don’t Want or Need
Go through your belongings and find items you don’t want or need, and consider selling them to pay off even more of your debts. All of this adds up!
See If You Can Increase Your Income
Is there a way you can increase your income, even if just temporarily while you pay off your debts? Maybe you could take on some overtime at work, offer some freelance services, or start your own side gig. There are loads of ideas you can look at!