Many of us got into debts with the assumption that we can pay them quickly. But one thing led to another, we ended up with more debts. Worse, these debts come with high interests and some have even higher interests. We waste money on interests and put unnecessary stress in our lives.
Below are 8 simple tips on paying the debts faster:
1. Focus On Debts, Not Saving
Most interests from savings accounts are lower than interests charged on debts. Therefore, focus on your debts with the aim to clear them all
2. Balance Transfer
Find a financial institution that can offer a better (lower) interest payment and consolidate all debts into one account from this institution. It saves time and money. A lot less headache.
3. Write Down All Expenses
By writing down all your expenses, you’ll inevitably become more aware of what and how you spend. This habit is also useful to monitor and adjust your budget accordingly.
4. Have a Budget and Stick With It
When you write down all expenses, you can easily build a realistic budget. Here is a more detailed post on budgeting: what it is and how to stick with it.
5. Have a No-Spend Week or Month
If you need to entertain yourself or your families, find a way to do free activities. Here are 6 tips on how to stay dedicated to No-Spend commitment.
6. Stop Using Credit Cards
Having credit cards is, no doubt, one of the biggest temptations of going into debts deeper. Use cash or debit cards for everything so you don’t get tempted to spend more than you earn.
7. Take Care Of Your Emotional Health
Some debts are caused by addiction to shopping sprees, gambling, drugs, etc. This addiction often comes from the need to escape certain unwanted emotions, such as trauma. It can also come from a perpetual feeling of being not good enough.
When you have an addiction, you’ll need to reflect, find help for your emotional issues so you can properly heal without relapsing.
8. Increase Your Income
Find a way to increase your income. You can ask for a raise, have a second job, or have a side hustle. Here are 7 ideas on how to earn money online.
