We have all been there; taken a loan or spent way above our means leaving us with a burden that we have no idea or plan of how to put down. If you have at some point in your life refused to take a call from a debtor or switched off your phone on the date when you are supposed to pay a debt installment, the problem might be more serious than you care to admit.
When we speak about financial freedom, we are referring to a state in our finances where all the money we make is in our control. If you have no control over the money you earn, then you probably hate working because your sweat is not yours to enjoy; that is the fix that debt places us in.
Whether you have been in debt for years or just days, you will feel much better, sleep better and even work better if you worked at eliminating it. Everybody probably knows this is what they are supposed to do but few know exactly how to do it. Here are some tips that will guide your way.
Create A Debt Pay Down Cycle
There is no way around debt –it must be paid off. You might be discouraged because your efforts do not seem to change the balance on your account but leave the debt installments unpaid for a while and you will realize that it is not true. If you have multiple debt accounts you can try to maintain a slow payments pace on all accounts. If you have a uniform amount you pay into each account every month, add some money into one of the accounts. If you target one that has the least debt amount, you will clear it within no time and you can channel everything that went into it to another account, repeating the strategy. The secret to achieving big with paying off one account at a time is to set a target of clearing the little debts first as you move up to the large ones.
Raise Money From De-cluttering
If you look around your house right now, you are most likely going to see items that you have never used in a while and others which you will never use. Why not gather such items from every room and sell them to people who need them? Most people have unused clothes, electronics or furniture in their houses which they can use to raise extra income. Do not be anxious about selling off some of your belongings; you never use them so you will not miss them. The extra income you raise can be channeled towards debt repayment.Get A Second Job
A second job to the one you are already in means more income at the end of a pay cycle. To be successful at working two jobs at the same time, plan your time such that you have dedicated hours for each commitment. You must also allow enough rest between jobs so that one does not affect the other. A second income stream whether in form of a job or business venture will speed up debt clearance and you can soon go back to working regular hours. If you decide to use this tip to clear your outstanding debts, prepare your days adequately as you cannot afford to waste any time between jobs. You may also want to establish your main employer’s policy on moonlighting to avoid getting in trouble instead of bailing yourself out of trouble.
Shop For Better Credit Facilities
When it happens that you must take a credit facility for any reason, ask around for the most favorable rates. If a debt accrues less interest and offers a flexible repayment plan, it means that the debt amount owed is low and the strained is manageable. Before you go to that bank or financial institution for credit, consider the option of family and friends. They will know you have money problems but you will pay them with less hustle because unlike institutions, they will not send collectors on you and some will even allow you to repay in kind.