Riddled debts to pay? Three easy steps to help you start right

Date Posted: September 16, 2022
By: Maggie Marques

Having debts to pay will always be a burden that needs resolution ASAP. If you want this load taken off your back, here are three relatively easy steps you need to take to give you a good start. It may not be easy, but debt repayment can be made.

1. Start paying.

Others will tell you to pay off the most expensive debt first, while some will ask you to pay off the smallest debt. Regardless of what you think is the best route for you, the important thing is that you start paying. The reason behind paying the most expensive debt is that, in the long run, you end up paying the most because the most costly debt comes with the highest interest rate compared to your other loans. On the other hand, you need to celebrate small victories – so paying off the smaller debt can encourage you to continue paying off debts, and before you know it, you are ticking off outstanding obligations.

2. Pay more than the minimum requirement.

If you keep on paying the minimum debt repayment requirement, it will take years before you can repay your debt in entire – principal + interest. If you have extra dollars, no matter how small they may be, add them to your debt repayment so that you don’t only save money on interest but also get to shorten the life span of your loan. You can also take advantage of balance transfers and debt consolidation if this will help you lessen the interest of your other loans.

3. Spend less and earn more.

When your financial health is failing, you don’t live within your means but live below your means. If it is not possible to spend less now, find ways to earn more so that you can have extra money to pay off your debts. You can look around your house and sell items that have been gathering dust and are unused. Doing so doesn’t only help you declutter, but it can save you money that can go to your debt repayment.

Every repayment step counts, no matter how small, to help you when you have debts to pay.

 

 

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