Ways to Pay Off Your Debts this Year

Ways to Pay Off Your Debts this Year
19 Feb 2018

Pay Off Debts

Dealing with debts can be very stressful. Many people are not able to sleep well thinking about the debts they owe which they need to pay. As a mom, you usually handle and manage the finances at home including the budgeting.

There are times wherein there is no other option but to borrow money like for example credit card bills, fixed rate home loan, car loan and many others. Since you are in-charge of the finances, it is also your responsibility to pay these debts with the money you and your partner earn every month. It takes a good budgeting and management skills to be able to say good bye to your debts.

In this article, we will share some tips to help you pay off your debts as soon as possible:

Tip 1: List Down All Your Debts from the Largest up to the Smallest

Seeing the entire picture will allow you to plan and prepare thoroughly. Thus, you need to list down all your debts to know the exact amount you need to pay and how are you going to divide it per month to include the payment to your monthly budget. This way, you know how long it will take like 6 months or 1 year for you to pay off everything according to your budget. Some people does not want to know the exact amount of their debts thinking it’s “just big”. Well, it will not lead you anywhere if you will close your eyes to the reality.

Tip 2: Allot Budget for Each Debt

After seeing the entire damage that you need to repair, it is time to plan your actions. You should allot budget to pay each debt like how much will go to your credit card bills, to your loan, and other things. Make sure to be consistent every month.

Tip 3: Come up with Weekly or Monthly Budget Plan

Speaking of budget, it is also advisable that you come up with weekly or monthly budget plan for the household including all expenses every month. Once you do that, you will see how much is left every month. Then, you can probably add some amount to your original budget for debt repayment. That way, you will be able to pay off faster.

Tip 4: Pay Your Monthly Dues on Time

It is also important to ensure that you will pay your dues on time especially credit card bills and loans since they accumulate interest and late payment fees.

Tip 5: Avoid Abusing Your Credit Cards

You should also refrain from excessive use of your credit card. It will not help you, instead, it will even make you go deeper into debts. You should use cash in your purchases to also avoid interest fees. Also, spending cash will prevent you from overspending.

Tip 6: Stay Away from Vices

Vices like smoking, drinking or gambling will do you no good and it will not pay off your debts. In fact, you will probably accumulate more debts with these vices. So just stop and use the money for debt repayment instead.

It would be a lot more peaceful when you have no debts to worry. Follow the tips that we discussed in this post to help you say good bye to your debts and be able to manage your finances well.

Featured Image Source: pxhere

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Thomas Elliot Young

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