Whether it’s consumer debt on credit cards, student loans or a mortgage, most people find themselves weighed down by debt at some point in their lives and want to look through every trick in the book to get rid of the high loans and massive debts. If you’re going through a problem of high expenses over a major loan to pay off then certainly you have something to worry about or if a load of cash out flow is resulting in late payments to the bank then you must be going through hell.
Paying off loans quicker is a smart choice and will ensure that your budgeting and sanity remain intact! Here are five simple tips to ace your loan problems.
Stop creating new debt:
If you want to get out of debt, for good than you must train yourself to say NO. This means no more financing furniture, no more signing up for credit cards, no more test driving brand new cars that you don’t have the cash to pay for. You should basically just freeze your credit cards (no joke). You should know that you don’t need more money to make you happy, all you need is financial peace of mind.
Try the debt snowball method:
If you’re in a mood to get done with your loan crisis then give this method a shot. As a first step, you’ll want to list all of the debts you owe from smallest to largest. Throw all of your excess funds at the smallest balance, while making the minimum payments on all your larger loans. Once the smallest balance is paid off, start putting that extra money toward the next smallest debt until you pay that one off, and so on. Eventually all your smaller loans will be paid and you’ll have cash for all your big loans.
Earn on some extra bucks:
Earning extra money can speed up the process of paying off your debts and that can come from some freelance work or part time jobs. If you’re looking for ideas then try freelancing, or look up business ideas that you can take up on the side. You could also use Careem or Uber as an option to earn on the side.
Ask for lower interest rates:
If your credit card interest rates are so high that it feels almost impossible to make progress on your balances, it’s worth calling your card issuer to negotiate. Believe it or not, asking for lower interest rates is actually quite usual. And if you have a solid history of paying your bills on time, there’s a good possibility of getting a lower interest rate. Always remember, the worst anyone can say is no. And the less you pay for your fixed expenses, the more money you can throw at your debts.
Sell everything you don’t need:
It’s the age of digital and everything now literally on your fingertips. If you’re not the ‘garage sale’ kind of a person than began selling everything you don’t need any more or maybe doesn’t fit to your requirements online. This way you’ll earn some extra money plus get rid of the things you don’t need which will lead to more space for you!
Always use handy comparison tools to find loans that have low interest rates, and ones that you can easily pay back without minimal hassle. Do share with us your key tips that have helped you pay back loans easier and faster.