Proven Ways For How To Get Out Of Debt With A Smile
Truly, debt is no fun.
It even sucks the fun out of living.
Lots of bills to attend to, probably not your fault.
Debt is sometimes an unintended consequence of overspending during the holiday or for an important event at any time of the year.
We didn’t have a “pay off your loans” class in school. Don’t even expect help from credit card companies because they even prefer you stay in debt till you die. That’s why they are in business.
Most people are struggling with debt. It is even applicable to students as well, since some of them leave school with loans.
The sufferings of some of them are obvious as they struggle and this also explains why some people just have their heads buried in the sand. For some people, the reality of being in debt is just so daunting and they choose not to.
However, disaster sometimes strikes, which force people to confront their circumstances, even head-on. This disaster could involve a series of unpleasant events such as a sudden job loss, a serious illness, an unexpected and expensive home repair among others.
When this happens, it can knock your finances off track really fast that you just barely keep up with your monthly bills. Moments like these are when the reality of your financial situations dawn on you.
Being in debt can be very stressful. If you signed for a loan, you are obligated to pay it back, no matter what your circumstance is.
People are getting out of debt within a short period of time and you too can.
So, here below are some plans that can help you get your freedom as soon as possible instead of struggling with the headache and hard work that comes with trying to get out of debt:
Make Debt Payment Your First Bill
This is the most important tip. For anybody that wants to get out of debt fast, debt repayment must be their priority. Try and make your debt the first thing that you settle from your salary. This should even come first before other essential bills.
Most times, there are some unplanned or unforeseen circumstances that just appear with the intention to negatively affect your financial plan and sabotage your own effort to repay your debt but this approach can help you combat them.
Consciously Decide To Stop Borrowing Money
If you want to get out of debt fast and are serious about it, then you need to do away with the habit of funding your lifestyle with debt. What does this mean?
It means you should stop signing up for credit cards, financing furniture, test-driving brand new cars you don’t yet have the cash to pay.
This will go a long way in helping you focus more on the debt that you currently struggling with and develop a game plan that will allow you to pay it off quickly.
Track Your Spending
It is important that you know where your money goes. This will help you spot the areas of your life where you can cut expenses. Look for all those big expenses that do not really fall into the category of your priorities.
It might even surprise you to discover how much you spend on work lunches every month. You can start packing PBJs. Keep an eye out for unutilized expenses such as gym membership.
Also, get used to the search for coupon codes for your online purchases.
Get A Seasonal, Part-Time Job (Especially For Students)
Local retailers are looking for flexible, seasonal workers to keep their stores operational at the periods of the busy, festive season, especially with coming holidays.
If you’re able and willing, you could go for any of these part-time jobs and earn yourself some extra cash, which will be very useful towards to use toward your debts.
There are also plenty of seasonal jobs that are available outside of the holidays. The bottom line is that no matter what period of the year it is, there are temporary jobs that do not require a long-term commitment and they are within reach.
For people that are already working, network marketing is another awesome way you can get a plan B source of income, you just have to learn how to do it the right way.
Get Out Of Debt – Drop Expensive Habits
Dropping expensive habits is another effective way to get out of debt fast. If you are consistently in debt and find yourself coming up short every month, then it is time to evaluate your habits. This might be the best idea. It makes sense for you to look at the little ways you spend money every day.
This will help you to further evaluate and know if those purchases are really worth it. Then you can come up with ways to reduce or get rid of them.
Your expensive habit could be smoking or drinking, and I don’t believe that is too hard to give up. Just quit. I have not read anywhere about the health benefits of alcohol and tobacco. They only stand between you and your long-term goals.
Reduce or stay away from fast food or restaurant lunches during work hours. Either get rid of this behaviour or replace them with something less expensive.
Suspend Your Cards (Credit Or Debit)
Truly, this could be a really drastic and painful decision! If you are constantly in debt or always in debt, then learn to let go of your cards. We all know how tempting it is to use those cards.
Cards provide us with some levels of convenience that are hard to let go and it is also easier to get carried away using them. Cards make shopping easier.
This is because you will quickly discover that your pocket is getting hit by your expenses when you keep removing money from there, the feelings that hardly come with using cards.
The high-interest rate on credit cards does not help as well, which is only one among the other reasons you should stay away from Credit Cards in Nigeria. So, it would be in your own interest to adopt this method. Give your cards a leave from work.
Place Yourself On A Budget
Seriously, I don’t think there is anybody out there that enjoys doing this. However, this approach has helped a lot of people to have spending plans and structure ways that made it easier for them to achieve their goals.
It’s not that hard.
Before you receive that monthly alert, make a list of those essential things you would need. Don’t forget that I just mentioned NEEDS, not the things you want.
I get it, this is not a rosy idea but budgeting forces you to cut off unnecessary and unprofitable excesses from your spending habit. It also puts you in a tight corner, preventing you from enjoying all those luxuries you desire.
Even though it is painful, I believe it is a good thing. You will be able to save more and get out of debt fast.
8. Get Out Of Debt – The Emergency Fund
Another way to get out of debt fast is by creating an emergency fund for yourself. Doing this it would help you get rid of the pressure from carrying credit cards, especially at times whereby certain unavoidable obligations come up.
You can’t really tell when the unexpected would happen. It comes in form of unplanned events such as impromptu travelling, car repairs, home repairs and medical bills among others. They happen once in a while, leaving you with no choice when they emerge.
Without an emergency fund, you could go into debt while paying them off. You might also sacrifice your debt repayment plan for that month. For anyone with a plan to get out of debt or looking to save more, creating an emergency fund is very important.
To get out of debt fast requires a higher level of discipline. All these tips above are not rosy ideas at all. Creating emergency fund, suspending your cards or placing yourself on a budget can bring a daunting experience.
No matter your type of debt, you must know that you can get rid of it. You just have to create your own strategies with these tips and discipline yourself to stick with it long enough.
This way, you can become debt-free, which is the only and best way to take control of your life and future.
The TRUTH is, you can do it.