It is easy to get overwhelmed with paying your debts, especially during challenging economic times. Without a doubt, the fastest way to clearing your debt is to pay up more than the minimum. For instance, if you even add an extra $50, you can clear your balance quicker. It is primarily because the minimum usually goes into paying the interest that is accruing on your loan. The extra amount on top will go towards clearing the debt owed. SFGate offers a list of useful companies to help you with debt management.
It is always advisable to pay off your debts before you start saving. Therefore, whenever you bump into some extra cash channel into paying your debt. There are simple ways that you can completely get rid of your debt right on time. Here are some of them:
Come up With a Budget
It is no shame to live on a tight budget if you are trying to clear your debt on time. Come up with a sensible budget for all your needs and a debt payment plan. You can also try to spend even less than what you had budgeted and whatever remains you can direct towards clearing your debt. This tip can save you in the long haul.
Even after you have cleared your debt, you can still work on a budget to save the extra cash. You can work with a worksheet or download a money budgeting app.
Cut Down Your Expenses
You can save hundreds of dollars by cutting down your expenses to what you need. For example, you need not go for a brand new car. You can look for a quality used car. The saved money can then go into clearing your debt. If you have several cars in your household, you can also consider selling some. You can even go the eco-friendly way and walk to work or take public transport.
Merge Your Debts
If you are swamped with paying your debts, you can consolidate your debt. While it can be quite overwhelming at first, lumping your debts can help you have a clear plan on paying up. It can also help you avoid further debts before clearing the consolidated ones. Some lenders can also allow you to renegotiate your debt payments on this ground. All you have to do is ask and make your case. The video below explains more on debt consolidation.
Speak With a Credit Advisor/Counselor
If you have tried all the tips above but are still struggling to meet your deadlines, consult a credit counselor. They usually offer free services and can help you make sense of all your financial problems. A non-profit credit advisor will also keep your information private. Let them in on your debt repayment plans and ask for their input. Due to their expertise, they can help you clear your debt on time.
Falling behind on your debt repayment can be frustrating. However, there are handy tips that can have you paying your debt on time. Come up with a budget, cut down your expenses, and consult a credit advisor. Also, pay more than the minimum whenever you can. In no time, you will be debt-free.