Do you have Credit Card or Loan debts? We know the feeling of wanting to get rid of them and just be DEBT FREE.
We’re pretty sure that last year, especially during the Holiday season, you went ham on spending and went shopping for gifts and stuff for yourself that you felt you deserved. So, swiping and applying for personal loans are a big hit for you.
Here are some tips to repay your debts and things you must do before everything else.
PRIORITIZE your biggest debts first.
START with the highest interest of credit first while paying your regular balance with your other cards or loans. Write down a list of your credit card debts or personal loans or you can make a simple spreadsheet that includes interest rates and minimum monthly payment required. You must be prepared to cut off those spending habit you do everyday and focus on repaying your debt.
STOP incurring more debts.
Make sure that you don’t add any more debts to what you already spent or borrowed. Cut off your spending habits but make sure you don’t sacrifice your health and security. Have an emergency money for yourself. Eating outside and shopping must go while you’re prioritizing to pay your debts.
MAKE extra money so you can repay your debts faster.
If you’re paying your bills at home and repaying your debts at the same time, might as well look for an alternative way to add a little extra money on your pockets. You can start selling pre-loved items that you don’t need and create an online store to do that. This is a big help on repaying your debts. You can do this until you are able to pay off your debts and your personal loans. Try to live on surviving a bare-minimum budget. You can adapt this kind of lifestyle until you have managed to pay off everything. There’s nothing wrong in tightening your budget and cutting off your spending habits. Once you’re close to becoming debt free, you can now go back to your regular spending and applying for a Personal Loan only this time, you know you’re more cautious and more RESPONSIBLE and will not make the past mistake again.