Become Debt Free
First, analyze your spending habits and see what made you take debts in the first place and also where you can save money. The resolve to repay all debts should be strong so that you can cut down on the unnecessary spending and use the money saved to repay the debt.
It might be required that you change the way you spend and so it needs the full cooperation of your family as well so that they can also contribute to cutting down the expenditure. See if you can consolidate all your debt at a single place but for this, you need to see the cost and benefit of doing this. Sometimes, it might just not be worth the effort. You can also see which debt charges you the highest rate of interest and make sure that you focus on repaying that first. This will save you money than repaying off the other debts. You need to make proper plans and adjust your finances accordingly so that you can repay the loan sooner as well as the additional charges that they would levy for doing so.
Once you have repaid the higher interest loan, the normal tendency is to use that money, which you used to pay monthly for that loan, for new additional expenditure. You should avoid that temptation and rather than using that money to spend more, you should use it to repay the other loans sooner. It is also about tightening your purse strings for a short period of time so that you can become debt free soon in the future and can enjoy the additional income when all the debts are paid off. Care must be taken to ensure that you don't fall into bad habits again and ensure that you don't take new loans in the meantime. This will only add to the burden.
At the same time, make plans to see how you can save some money in the future for your various new/emergency expenditure so that you don't fall into the debt trap again. There is no use doing the same thing again and again and expecting different results each time. So, things need to be changed and your habits have to change so that you not only become debt free but also ensure that you have enough money saved for the future expenses.
It might be required that you change the way you spend and so it needs the full cooperation of your family as well so that they can also contribute to cutting down the expenditure. See if you can consolidate all your debt at a single place but for this, you need to see the cost and benefit of doing this. Sometimes, it might just not be worth the effort. You can also see which debt charges you the highest rate of interest and make sure that you focus on repaying that first. This will save you money than repaying off the other debts. You need to make proper plans and adjust your finances accordingly so that you can repay the loan sooner as well as the additional charges that they would levy for doing so.
Once you have repaid the higher interest loan, the normal tendency is to use that money, which you used to pay monthly for that loan, for new additional expenditure. You should avoid that temptation and rather than using that money to spend more, you should use it to repay the other loans sooner. It is also about tightening your purse strings for a short period of time so that you can become debt free soon in the future and can enjoy the additional income when all the debts are paid off. Care must be taken to ensure that you don't fall into bad habits again and ensure that you don't take new loans in the meantime. This will only add to the burden.
At the same time, make plans to see how you can save some money in the future for your various new/emergency expenditure so that you don't fall into the debt trap again. There is no use doing the same thing again and again and expecting different results each time. So, things need to be changed and your habits have to change so that you not only become debt free but also ensure that you have enough money saved for the future expenses.
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