Get Out of Financial Debt This Year - Ten Ways to Condense Your Financial Debt Repayment Time
While the method you choose to repay your debt depends on many factors including the type of debt and the overall debt balance, the tips given below can be used as a general guideline: 1.
Take ownership of getting rid of the debt.
Instead of worrying or moping around, it is time you took responsibility for your actions (of piling up the debt) and have the commitment to repay the debt as soon as possible.
2.
Make more than the minimum payments required.
While your creditors would be more than happy to have you making minimum payments on your debt (while helps them stay in business longer), make sure that you pay more than the minimum to reduce the repayment time 3.
Apply the concept of debt snowball.
Make a list of all your credit card debts with the ones having the highest interest rate getting top priority and pay them off as quickly as possible.
4.
Start a budget.
A budget will give you more clarity on your monthly income, the expenditures that you will incur every month and the disposable income available to use for repayment.
5.
In case of loans that compound daily, send micro payments instead of one big one.
When you send money once a month you will incur interest which will keep on accumulating.
Instead, whenever you have spare money, pay it in and save on the delivery time.
6.
Take up a part time job.
A side job means additional income.
The extra money can be used to repay debts which will result in faster repayment.
7.
Sell any unneeded stuff that you possess through internet sites like e-bay, craigslist etc or through a garage sale to earn extra money 8.
Ask your loan company to give you a lower interest rate on the existing loan.
Negotiate with them and let them know why it is important for you to have the lowered rate.
You might just succeed 9.
When you have a number of small debts, it makes sense to consolidate the debts into one single loan.
The loan should have a lowered rate of interest which would work in your favor.
10.
When your income increases, do not opt fro a bigger lifestyle.
Try to get rid of your debts first with the extra money you now have at hand.
Take ownership of getting rid of the debt.
Instead of worrying or moping around, it is time you took responsibility for your actions (of piling up the debt) and have the commitment to repay the debt as soon as possible.
2.
Make more than the minimum payments required.
While your creditors would be more than happy to have you making minimum payments on your debt (while helps them stay in business longer), make sure that you pay more than the minimum to reduce the repayment time 3.
Apply the concept of debt snowball.
Make a list of all your credit card debts with the ones having the highest interest rate getting top priority and pay them off as quickly as possible.
4.
Start a budget.
A budget will give you more clarity on your monthly income, the expenditures that you will incur every month and the disposable income available to use for repayment.
5.
In case of loans that compound daily, send micro payments instead of one big one.
When you send money once a month you will incur interest which will keep on accumulating.
Instead, whenever you have spare money, pay it in and save on the delivery time.
6.
Take up a part time job.
A side job means additional income.
The extra money can be used to repay debts which will result in faster repayment.
7.
Sell any unneeded stuff that you possess through internet sites like e-bay, craigslist etc or through a garage sale to earn extra money 8.
Ask your loan company to give you a lower interest rate on the existing loan.
Negotiate with them and let them know why it is important for you to have the lowered rate.
You might just succeed 9.
When you have a number of small debts, it makes sense to consolidate the debts into one single loan.
The loan should have a lowered rate of interest which would work in your favor.
10.
When your income increases, do not opt fro a bigger lifestyle.
Try to get rid of your debts first with the extra money you now have at hand.
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