Debt is something that virtually all of us have to face at some point. Whether it’s a student loan, mortgage, car loan or even just your credit card, we use a lot of borrowed money in our lives to pay for things that we can’t afford in a single payment. While most of these financial products are designed around our income, unfortunate circumstances can lead us to owe more money.
For instance, you might find yourself struggling to pay for emergency medical expenses because your budget doesn’t allow for it. This can lead you to take out a loan or be forced to pay it back in instalments with interest. You could also lose your job which removes any form of income you have, leading to a difficult financial situation.
Start Paying More Attention to Your Budget
It’s important to look for ways to start budgeting your expenses. Understanding how your money is flowing in and out can make a huge difference in the way that you use your funds. We suggest trying out a personal finance app on your phone to record your incoming and outgoing money. This will help you identify areas where you spend too much and give you some idea of how you can save more money that can be spent on paying off your debt.
Consider a Debt Discharge Program
A debt discharge program such as DTSS is a great way to learn about financial freedom and how you can free yourself from serious debt. Debt discharge can help you get out of debt around 10 times as fast through professional advice and guidance from financial experts. We wouldn’t recommend this for minor debts such as a small credit card, but if you’ve found yourself in serious financial trouble then it’s a great option.
Pay More Than the Monthly Minimum Each Month
One of the simplest ways to get out of debt fast is to pay more than the minimum each month. Even if you paid just 10% more, it’ll add up to less interest over time and could see your debts being paid off several months earlier.
Find a Profitable Side Hustle
There are many ways to earn a bit of extra cash on the side that can be used to pay off your debts. One of the most popular methods is to work as a freelancer. This allows you to make a sizable amount of income using skills you already have (or are interested in learning) and allows you to pay off your debts faster. It also gives you financial security should you ever lose your job or face a temporary reduction in your hours.
Learn to Live With Less
Many people develop a fear of missing out when entering social circles. As such, they might spend more money on things that they normally wouldn’t, such as buying extra rounds of drinks at a work meetup or buying entertainment and clothes they could do without. By learning to live with less, you’ll save a considerable amount of money each month which could go towards paying off your debts and savings.