How to Pay Off Debts Faster? Here are 15 Ways!
There is a point in life that you start realizing that your debts are growing to the bad side, but unfortunately, the time elapses fast against your earnings. I was once caught in between a huge bad debt with my little earnings.
My job was paying an amount that, after different deductions to taxes and other fields like health insurance, I was left with a small amount that could not even sustain my daily lifestyle.
I had to find a route to sort out this situation and create more income to save and to pay off the bad debt. I employed some tactics that saw me live a good life and at the same time, pay my debt; they worked out!
I picked a side Hassle.
At this moment, I needed more cash. My main job was paying, but it was not enough to even sustain my lifestyle, as I stated earlier. I had to dedicate more energy and work extra hours on my side hassle.
I realized that I had a skill that I can monetize; I believe you have it too. I liked writing and reading different literatures. My friend referred me to a certain article writing platform at which I got some clients who wanted some writings done for them.
This gave me a sigh of relief. I always rushed out of my main job catch my computer, do some internet search, and type as fast as possible. This really worked out! I could generate money for my upkeep as I used the money from my main job to service my debts.
I Drew a Budget
With my limited income, I had to draw a budget to avoid buying what I don’t need at that moment. I used an Excel Spreadsheet and included my monthly income. The excel spreadsheet helped me scrutinize the budget categories that guided me to drop some expenses.
His worked out very well as I was also able to give my bad debts a budget that I strictly adhered to.
I Sold off Some Unused Appliances
At the moment that you have bad debts, cash is more important than some appliances that you don’t use.
Let me say that when I was well-off financially, I had upgraded my electronics system like I bought a new music system, new TV, and new furniture, and I had not disposed of the older ones.
At this moment I had to sell the older ones as I was not using them. After all, I could have donated them to some charity, but I needed cash.
I Set up Some Business
Analyzing the nature of my main work and side hassle, I could not have managed a physical business having in mind that I had a family and other obligations. Since I was working online as a freelancer, I had to invest online.
I took some money out of my salary that I had budgeted for and invested in a blog. At this moment, I owned a blog that I used to write a few blogs sometimes, and within some time, it started paying. In fact, this blog is in existence to date.
If you like online stuff; writing, blogging, reviewing, surveying, then this is your field. A blog can help sort out your bad debt too.
I Paid Off the Most Expensive Debt First
The most expensive debt in my cards always scared me the most. I used to think that it was impossible for me to be it off, but this criterion helped.
Once the highest debt was sorted, I then directed my energy to other small debts that I paid without straining.
Drop Expensive Lifestyle
You may be used to expensive lifestyles such as regular outings, driving expensive cars, or participating in various expensive sports. However, I am not trying to say that you drop them at all, but you need to cut off some or do them sparingly.
I applied this tactic, and it saved me a lot. I was able to channel the money I could use for expensive holidays to settle some part of my debts. Be sure that after I settled the debts, I was back to my normal lifestyle, and it never seemed expensive.
I Paid More than the Set Minimum Amount
When I was applying for the loan, I was given the minimum amount of money I was to return every month. This could take a long time to finish paying my debts, having in mind that I wanted to free myself from debts and live a free life or apply for another loan.
The best way to get out of your debts, too, is to pay your debts more than the minimum amount monthly. If you are carrying a personal loan, credit card debt, or student loan, then this is the best way to approach it.
I Channeled my Bonuses to Repaying my Debts
There are always bonuses for holidays and different occasions from your employer. You can receive vouchers, allowances, and other forms of bonuses that are different from your main salary.
I used such bonuses to settle my debts. To avoid the temptations to spend these tokens, make sure you channel them immediately to debts as you receive them. This allows you to maintain a normal budgeted lifestyle.
I Sold off Unwanted Gifts
Quite often, as we interact with friends, workmates, employees, and even family members, we always receive tokens of appreciation from them. I had a good number of these gifts that I had received a long time ago. Others had lost meaning, and others were similar gifts that could not be of any meaning.
Make sure you don’t sell the precious gifts you own. But if they are more than what you need, there will be no harm to give out some.
I Always Rewarded Myself
Paying your debt should not look like a form of punishment. When you reach a certain debt goal, make sure you reward yourself t serve as a motivation.
When you reward yourself, you remain focused and motivated to continue working on your daily chores.
For instance, I spent over $ 10000 for my vacation, but this was far high as I had an obligation to repay my debts. To serve as a motivation, I could spend something below $5000 once in a while to keep me moving.
I Changed my Habits
I realized that I had accumulated a lot of debts because of my daily habits. I had to take time and analyze how I spend my money on a daily basis, weekly basis, or even monthly basis.
Ask yourself some simple questions like; “can I carry packed lunch to work?”, “Can I walk from work instead of spending on travelling?” “What can I change without sacrificing and inconveniencing myself too much?” If you gather solutions for such questions, you can easily change the habits that will save you from repaying your debts.
I Shared My Budget with Friends
By this time, I had no big family around me, and I was living in an apartment alone. I also had some other workmates who were in the same state as mine, and I thought it was wise for me to let them in so that we can share the budget.
This saved me the money I could have used to pay for my rent, buy food, and pay for other bills alone. I then channeled the accumulated money to repay my debts.
This step may not be an enticing ne for you, but the saved money is real.
I Refined my Credit Cards with Loans
This was my lifesaver. If you always find yourself on the wrong side of your credit card, then this technique will save you.
Refining my credit cards with loans helped me save some money on interest. The personal loan that I took to refine my debit cards came with a repayment period. I even attached it to my employer, and the salary was automatically channeled to repay it.
This cleared off any dilemma in me of the time limits I had to repay my credit card debt and saved me from overdraft expenses.
I Used Shopping Portals
There are shopping portals that pay you back for every purchase you make. The shopping portals give you rewards for every purchase you make, saving the money you could have used for shopping. You can use the rewards to do the next shopping and save the money you could have used for the shopping.
I Kicked Out My Bank
My debit cards could always be debited once I used them for shopping, but they had a setback. I could receive a high overdraft at the end of the year.
So I opted to switch to a totally free checking account, and my credit card could deny me shopping once the balance ran low. This was quite embarrassing, but it saved me a lot of cash.
The above techniques got me out of the debts I had. If you closely employ these tips, you will repay your debts faster than you can expect.