Helena Hunter, Executive Chronicles | Being under the debt doesn’t look horrible unless you start to face continuous recognition and stress from the debtor’s side. Indeed, paying off the debt is not simple as you need to manage money, shrink your expenses, give up your materialism love and focus on coming out of the shell of debt. Here are four ways you can pay the debt faster—
Don’t consider “Found money” to make your pocket heavier
Found money refers to the money you get besides what the amount of money you’re working for. Bonus, gifts, bonds, and incentives you get are part of the found money. Dedicated to human behavior, we consider “found money” as a money to have fun and shop; however, when you’re under debt—you must forget this human behavior and act like a sensible individual who has a complete debt manual to concentrate on. By putting “found money” towards your debt (with the highest rate) is critical and makes a good difference in your financial status. Using the trick for few month or a year, you will surely see the difference.
Hustle—choose two roads of earning
Aren’t you skilled in something that may help you making money? Yes! Find that skill in you. Choose something part-time, over-time, and freelancing at night or evening or early in the morning. Cut-off your non-urgent chores. It is one of the applied tricks in Canada between millennials. But first, you need to set statement in mind “the other road’s money isn’t for fun, it must be given to the debtor on monthly basis.” Stick to the statement and find your balance moving from loss to profit and zero debt amount.
A credit card is one of the tricks of bankers to trap the customers into the role of debt. Manipulating customers with the words like quick payments, monthly paybacks, and less interest rate is effortless, however, trapping them at the high-interest rate is more effortless. You can always go to a reliable lender, try to consolidate your debt. Get revolving credit and you are able to re-borrow the amount you spent. Debt consolidation puts an end to the credit card debt circle. Indeed, while re-borrowing, sometimes you are only required to pay the interest and thus, half of the burden of debt get off the shoulders right away.
Financial modeling could either be your favorite to do or rests at the bottom of interest list. However, you need to model a budget. Analyze your spending, saving and non-essential expenses for past few months. You will find yourself somewhere spending uselessly, saving but not smartly and not cutting down expenses but adding. Now, categories you’re monthly earning into three parts—savings, spending and to the debtor. Stick to the budget model.
Remember, not stick to any of the above methods may dig you deep the debt-trap.