Debt can be very destructive to both your personal, professional, and financial life. Debts can be devastating if you let them get out of control and don't have a clear path to repayment. If you don't pay off your debt, the interest rates will eat you alive and you may need to end up declaring bankruptcy. Unfortunately some debt, including student loans, will haunt you even beyond a bankruptcy. That is why we are here to help you ditch the debt with our top tips below:
1. Create A Written List Of All Your Debts
The very first thing you need to do to regain control of your money is to write down all of your debts and their monetary value. Many people avoid doing this because it is certainly scary, but you absolutely need to do it.
When you write out your debt list be sure to also include how much interest you are paying for each one. This will help you to identify the most costly one so you can take relevant action to deal with it.
Unfortunately, there are many people who borrow money without thoroughly thinking about how they plan to pay it off. Therefore, if you find yourself in a difficult situation you should be comforted knowing that you are not the only person in that type of situation. You are not alone, in fact you are probably in the majority with the debt you are facing, especially in today's economy.
2. Prioritize Your Debts And Work On The Most Important Ones Initially
Even if you have lots of different debts, you need to properly prioritize them. You may be surprised to learn that the debts that are the most important to pay off may not be your biggest ones. So, make sure that you pay off the most important ones first. Find loans from direct lenders.
Some of the critical debts you need to pay first include utility bills, rent, mortgage etc. These are important to pay off first so that you can continue to have a place to live as well as access to essential services.
After you have dealt with the most important bills you should think about the most costly debts. These are the ones that have the highest interest rates. You should strive to at least start paying these off so that you can get rid of the debt asap. This can be done by looking at ways that you can cut back in certain areas of your life.
3. Live A More Frugal Life And Start A Side Hustle
Now that you have organized your debt and started prioritizing payments, it's time to fix your finances. It is simple math really, you need to start cutting back on expenses with frugality and start earning more money with a second job, side hustle, or paid gig.
Spend less money and make more money. Despite what some people may think or say, it's really that simple! But it does come with some hard work and sacrifice.
Ditch The Debt
Don't let debt dominate your life. Fight back and regain control of your finances with the debt ditching tips listed above. When you finally become debt free you can thank us!
