4 TIPS TO PAYING OFF YOUR DEBT FASTNovember 21, 2018 / by Marco / Categories : Business
Debts can be a never-ending pain, a cage that holds you captive for years. You can become a slave to debts and never enjoy financial freedom. Whether you have a student loan, a car loan, a credit card loan, a personal loan, or any other kind of loan, you need to have the right kind of information and strategy to clear off the loan fast and become debt free.
To help you out, here are 4 tips to paying off your debt fast:
Work An Extra Job
For you to become debt free, you’ll need more money coming into your hands and channel it towards the debt repayment. Paying the debt using the single source of income you have may take ages to complete. As such, it would be a good idea to take up an extra job.
With an extra job, you will be able to make some extra cash. This money should be fully channelled towards payment of the debt. Adding this with the other contribution you make from your first source of income will increase the monthly payment amounts you make and in turn, you’ll end up clearing the debt faster.
Pay More Than Is Required
There are loan repayment terms that are given to you which you must follow to clear off the debt. One of the terms is the amount of money you have to pay per month. There is also the interest that keeps accruing on the debt which adds up to the principal debt amount you have to pay.
To pay off the debt fast, you can consider making larger monthly payments. If say the terms state that you pay $300, you can double that and pay $600. It may seem like a strain at first but it will get you out of debt faster and save on the interest accumulated.
Employ The Balance Transfer Approach
If your credit card company isn’t willing to tone down on the interest rates, you can opt for a balance transfer. This is a process where you transfer a high-interest debt from the current credit card to a different card which has a low-interest rate.
You can get a 0% Annual Percentage Rate for the first 15 months. This will then allow you to make more payments each month on the principal balance as opposed to the interest charges accumulated. This makes it less of a burden to you and by making higher monthly contributions, you can clear off the debt faster.
Use The Snowball Method
The snowball method is an effective way to clear off the debt faster. List all your debts from the least to the biggest. Make high contributions towards the smallest debt and lower contributions towards the bigger debt. Once the smaller debt is paid off, take up the next smallest debt and repeat the process again.
The benefit of this snowball method is that you are able to eliminate each debt quick and easy. It also has a positive psychological effect seeing that you’ve cleared one debt and are motivated to tackle the next one. With this approach, you’ll end up paying off all your debts faster than you imagined.
These four tips will help you pay off your debt faster. Getting a custom payment solution for your debt is an even more effective and fast debt payment method. To get you started on it, check out MyPaymentSavvy
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