Here are five ways to clear your debts once and for all.
1. Implement a money management plan
Without a plan, you are likely to fail. So start by setting clear and achievable financial goals. Rethink your entire budget, after assessing your monthly expenses. Find ways to save more money each month, by cutting costs wherever possible (for instance, giving up the gourmet coffee you buy every morning on your way to work and preparing your own lunch instead of eating out every day, etc).
2. Pay off the credit cards with the highest interest rates first
If you want to get rid of consumer debt as quickly as possible, the rule is simple: pay off the credit cards with the highest interest rate first and always make more than the minimum payment. It’s best to target one card at a time, it will make you feel much better to know that you have managed to pay off one credit card entirely. It also helps to double the payments each month until the debt is completely paid off.
3. Don’t buy things you don’t need (especially not using your credit card)
In order to clear your debts, you need to make certain sacrifices. One of them is avoiding unnecessary purchases. If you don’t need it, don’t buy it – it’s as simple as that. Before making a larger purchase, such as an expensive gadget or clothing item, take a few days to think about it and make a conscious choice, not an impulsive one. By avoiding unnecessary purchases, you’ll gain self-discipline and manage to save a lot of money in the process.
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4. Make saving a priority
There’s no way around this one: you need to make savings a priority if you want to get rid of debt. Just think how much money you could have saved by now if you had made saving a priority years ago. The best wa to go about it is to automatically deduct a certain amount from your paycheck at the beginning of the month and direct it towards your savings account. The more you save, the more you will enjoy it and the more financially secure you will feel.
5. Increase your income
If all else fails and you still aren’t able to clear your debt, it’s time to take more drastic measures. This may mean increasing your monthly income by getting a part-time job, finding a better-paid job, or starting a side business.
It won’t be easy, but if you give it your best, you can succeed. You don’t have to start a huge business to make extra cash. You can consider online jobs in your spare time, such as virtual assistant jobs or online tutoring services.