Nobody likes to have debts but in many occasions it is a necessary step to be able to have a car, a house or get out of an economic emergency. Therefore, it will always be important to leave them as soon as possible and pay them as quickly as possible.
The fastest way to end your debts is to earn more income with a new job or with a venture that brings more money home each month. But remember that you also only have to meet your monthly fees to finish them in the best way.
But as that is not always simple, there are other ways to end your debts with the same income but with a little more financial discipline.
Before starting the “debt clearing process” it will be important to be clear about how much money you owe, to whom you owe it, under what conditions and what is the term in which you must pay it. This will be a first step to have a clear map of your future and the payments to be made. You will know the amount you have to pay in total in debt and part of your budget will be allocated to that. Now the goal is to have a greater amount of resources each month to pay off your debts in a period of time less than initially planned.
Here it will be important that you first count all the expenses you have had in recent months. Sort the expenses by categories such as home, entertainment, or children … and then put them from greater to lesser importance. This exercise will help you know where you can cut expenses and thus have more cash. The first expenses to be cut are usually related to ant expenses.
Once all your debts have been identified and all your expenses organized, it will be important that you have a fixed goal each month of the extra amount you will have to accelerate the payment of your debts. For example, you can set that each month you will have an additional Q1,000 to pay for them. The goal is to be constant, and devote more resources to paying to end them as soon as possible.
At least until your finances have recovered an order, it may be a good idea to cancel your cards to avoid temptations that lead to more indebtedness. In your financial discipline process, a good choice is to handle only cash and stick to what you need at all times. The idea is: “If you don’t have extra money to spend, you won’t spend it.”
Now it’s your turn to put it into practice. The advantage of paying off your debts quickly, is that it will allow you to take a weight off and in the future have more cash each month.
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