To get rid of debts fast you are going to need five things;
If you are not ready to develop the above qualities if you don’t have them already then you are at the wrong place and you should forget about ever getting out of your debts situation fast because the tips I’m going to give will require you to have them. But if you are ready to walk this path then consider doing the following ;
1. One bite at a time
One of the worst mistakes you can make in trying to get rid of multiple debts is trying to do it all at once. This can bring about confusion will make tracking your progress difficult and can in turn demoralize you. You need all the support you can get in trying to get out of this situation. That is why you need to tackle one debt at a time. You finish with the first you go to the second upto the last. This will make tracking your progress easier and you will do it faster this way. It is also advisable to start with debts with high interests first. Eliminate that with the highest interest down to that that that has the lowest rates.
2. Pay more than the minimum
If you want to get somewhere early walk fast, if you want to get at the same place a little bit earlier, you need to walk faster. The same apply to paying off your debts. You cannot hope to pay them off faster while still paying them at the same rates. You need to pay as much extra as you can afford to make sure you clear the debt off in a short span of time. You can even consider doubling your debt payments if you can.
3. Find ways to increase your income
If you are going to pay more than the minimum then you must ‘the more’ that you are going to use in paying your debts. That is why you must have extra cash. Look for ways that you can have more money flowing into your wallet. You can consider options like;
- Teaching online in your free time
- Creating tutorials on YouTube
- Selling used items online
- Doing social media marketing
- Starting a side hustle business
- Conducting a webinar
- Taking paid surveys online
- Writing online…
There are several ways of getting an extra coin so it is up to you to choose and put in the work. You should then use the extra cash that you get to repay your debts.
4. Reduce your expenses
In the quest of getting rid of your problem called debt; you are going to require all the cash you can get. This is why you need to look at what you are spending your money on and see if in your list there is something you can forego at least until you clear out your debt problem. Cut on costs and spend less than you always spend. After paying off your debts you can then reconsider if you are going back to your old ways. The extra amount that you get use it in paying off the debt. You should also avoid using credit cards.
Reducing your expenses and increasing your income may not be the only way getting some extra cash to pay your debts. Through budgetting you can also have this extra cash. Be accountable and budget for everything. Know how much money you got coming in and how much do you need to go out so that you can use the amount remaining to service your debts. Through budgetting you will also be able to track your expenses and know how much you are spending on what so you can find a way of reducing some if you are overspending on something so you can have some extra cash to pay your debts.
6. Create an emergency fund
Emergencies can mess up your plan of trying to eliminate your debts fast. Because you did not plan for them, they may force you to dig into your savings or use cash that you were to use to pay debts to service them or worse still they may force you to get into more debts to manage them. This will mess up your plan and hence need of setting aside some emergency fund. The emergency fund will help you tackle any unexpected expenses that may arise while you are still continuing with your fight over your debts.
7. Take advantage of windfalls
In circumstances where you receive a windfall like a bonus at your work or a tax refund or anything of that kind, you should for this one time sacrifice and consider using them to pay down your debt. When this happens, you should consider it a massive boost and put it to the best use which is at that time paying your debts.
Getting rid of debts is not an easy task and doing it fast is even an harder task. It will require massive sacrifice, discipline, organization, hardwork and accountability just like the tips above may require you to be. Find a way of developing these qualities and debts will be something you will write off fast.