Stay Debt Free and Worry Free in Five Hassle Free Steps
In today’s society, debt is one thing common to almost everyone. It has been included in one’s lifestyle. The saddest part is that more people have debts to pay than they have savings. When in fact, to save is the most important thing to practice. But if you ask the common people about their savings, majority will say they have none.
Five Easy Steps to be Debt Free
How can you pay your debts faster? If you are determined to clear off your debts, you can do so. One important thing you can do is to follow a pattern. There are five steps to help you succeed in paying your debts.
Step 1 – Calculate your total debt
Make a clear computation of all your total debts (credit card bills, salary loans, bank loans). List down each of them including the monthly amortizations, interest rates and due dates. If you can, communicate with the creditors and negotiate to lower down the interest rates. In this way, the burden will be lesser; making it easier for you to pay all your bills.
Step 2 – Create a work plan or repayment plan
It is very important that you follow a payment scheme. If you have multiple creditors, choose the lowest amount owed and make it priority number one. Break it down into how many months you can pay it in full. If you can, pay it one time in full amount. For the other creditors, set a minimum payment and make sure to follow the payment schedule every month.
Step 3 – Examine your monthly income and monthly expenses
There is a need to examine your income versus expenses. See if the monthly income is enough to suffice the monthly expenses. Whatever excess money you have can be added to make excess payments to your debts. See as well if you can cut down on the other unnecessary expenses, in order to save more. Still add the money to reduce more debt obligations.
Step 4 – Learn to save to pay your debt
Once you have identified all your debts, do everything to pay including the interests. Save as much as possible; do away with all excessive expenses. Just like watching a movie in theatres, instead rent a disc and watch at home with your family. Also, instead of dining out in restaurants cook your own meals and eat together with your family. Both of these activities will let you save money, spend time with your family, and most importantly be able to pay off your debts.
Step 5 – Make all these steps a habit
Continuously repeat all these five steps until all your debts are paid. Once all debts are paid, be wiser to choose your next expenses. Spend your money carefully.
As you can see, to be able to pay all of your debts also needs planning. Together with determination and discipline, there will be no debt that will remain unpaid. It is never too late to start because it is better to sleep at nights worry free and stress free. So choose now to be debt free.
Victoria Anderson is a finance advisor for Guarantor Loans. She writes articles about finance, business and debt consolidation.
