Strategies on how to get out of Debts: Tips that will help you pay your Debts

Strategies on how to get out of Debts: Tips that will help you pay your Debts – It’s not rare to find people running and hiding from their debtors. It is not a Fun exercise; none of us ever want to be in such situation.

But what if we didn’t have to Run?

What if we didn’t have to live our lives in debt?

What if we all lived Debt-free lives?

Don’t giggle in scorn yet. It’s possible and attainable. We can escape the ditch of debts. Let me show you how:

1. Contents

   Have a Clear Financial Information:

Financial Information include records and information that is comprised of your bills, expenses, income and source(s) of income, etc.

It is Important to have this Information as it helps you get acquainted with yourself; knowing your Spending Pattern (if you’re Expulsive or Thrifty in Spending), your Income Sources (whether sufficient or deficient), your Lifestyle demands etc.

This will help you fault areas of loopholes and strike a balance between expenses and income.

2. Have Accurate Debt Information:

Have a concise list of all your debts, the Amount, Interest Rates and Payment deadline. Also include the minimum payment amount required for each debt.

This may be although frightening and discouraging especially if it runs up to big figures. But it keeps you aware of what you have to tackle and also instills the urgency for clearing them up.

When you start paying up, a good debt information will let you know when you’ve cleared up debts or the progress you’ve made in clearing them.

3. Have a Debt Pay-off Plan:

Having a Budget helps us avoid the incidence of debt. But this comes as a first step when debt doesn’t exist.

But when already in debt, after gathering accurate financial records and debt information, the next line of action is, Creating a Debt Pay-off Plan.

This would contain ways of clearing up the debts, maybe by seeking for grants, crowd funding from friends and family, your salary. It doesn’t have to be complicated.

It may be Long term or short term but the critical point is sticking to the plan to the end.

4. Reduce the Interest Rate:

A Major Reason people find it difficult paying back debts is the Interest Rate attached to the Amount borrowed.

A High Interest Rate elongates the Span of time for Payback. So, negotiate your Interest rate to be Fair and moderate.

It is true that you may have already borrowed the money and started remitting it, but you can consider appealing to the lender for a reduced interest rate. This may be successful depending on how persuasive you are and how persuaded the lender is..

And for Future refs, never take on a loan with a high interest rate. It elongates the payment time as you may find it difficult to pay.

5. Don’t be Restricted to the Periodic Amount Payable

Whether you’re asked to remit the money daily, weekly or monthly, don’t be restricted to the stipulated amount. You can pay higher than what you’re expected to pay.

This will help you clear up your debt faster. Discuss with your Lender, this will be beneficial to him/her as it will help him/her regain their money faster. The Faster you clear your debt, that faster he/she regains the money.

6. Increase your Income Sources:

To clear up your debts, your Income must be greater than your expenses. A way to go about this is to increase your income sources; take on new jobs, try out new businesses, in general, have a side hustles and a means of passive income.

In this modern age, there are more opportunities than ever, for anyone to diversify their streams of income.

And interestingly most of these gigs are conveniently; you can run them from the comfort of your home.

7. Cut down on your Expenses:

Evaluating your Spending patterns and lifestyle habits is important in getting out of habits.

You’ll to be honest enough to cut down on unnecessary expenses. Spend only on what’s an asset and not a liability. Live only on bare necessities and do away with frugality.

No matter the debt, it is clearable. It is possible and attainable. Be intentional about every aspect of your life, especially with your finances.