Debt can drown people in a bout of depression ,making him mentally weak and draining him out. Hence there's no need for me to list the downsides of it. People can't think straight when they find themselves in debt and many a times, end up taking the wrong step. Instead,in a situation like this, one must be calm and composed and figure out easy solutions to do away with it. There's no single way to achieve so; one needs to try out various suggestions to see which one works fast for him. Here I've enlisted few strategies that can be applied to kick-start the process:
- Pay greater than the least payment: If you want to get off your balance fast, pay as much additional money as you can. The lesser you pay, the more the time it will take to pay your balance off. You can use various free financial apps, to check on your savings.
- Cut off on your expenditure: We all want to live a luxurious lifestyle, and there are no ends to our wants. People usually fall prey to this never ending greed and end up in debt; for they seldom ever think of the consequences after buying something way too expensive for their living. This needs a check. Don't buy something unless you absolutely require it;don't be an impulsive buyer. Save up little by little while cultivating this habit. By the time you're done with the debt, you would probably have saved much and you can then redirect them towards other priorities
- Opt for a used car than a new one: You can save more than you could normally, in investing in a well conditioned used car than a brand new one; Look up the internet or put up an advertisement stating your specifications. This money that you save will eventually help pay off the debt.
- Do away with the costliest debt at the earliest: Mark that one debt which is costing you the greatest interest and make all efforts to pay it off first. Once this is done, move on to the second most expensive debt and direct all your saving to clearing that one off. Prioritizing your debts this way will make the results quick and you'll feel motivated as you see the developments.
- Stock up on groceries: Save money on groceries by buying them all at once when they're on sale and putting them aside. You can skip grocery shopping the next month using the pile you bought last month. This could save you about 30% on your yearly bill. The main thing to look for is buying up the groceries only when they're on sale and preserving them properly.
- Make your own budget : Doing this, will help you keep a track on your expenditures, and make an efficient plan on how long it might take to resolve the debt. You can see where you might be spending more and need to cut down. You can also go for budgeting apps that will help you manage your finances easily.
- Work overtime or apply for a second job: Going for extra shifts or getting a second job , is what most people do when trying to clear a debt. Not feasible for all, but is only a temporary solution to make way for some extra income.