Ready to finally get out of debt? Paying off your debts isn’t easy, you might have to make some sacrifices but it’s worth it. Here are some tips to help guide you through.
Make a list of everything you owe
Step one to getting out of debt is figuring out just how much you owe. Get your bank statements and a notepad and start writing down how much you owe, how much you earn and how much you can realistically pay off the next few months.
Focus on one debt at a time
You can make amazing progress when you make a large payment to settle just one of your debts each month until it is completely repaid. If you can do that while still paying some of all your other debts, that would help immensely. When you’re through with one debt then do the same for another debt, and then another, until they’re all paid off.
Try the debt snowball
The debt snowball method is a technique where you pay for your debts with emphasis on the smallest one. Make your usual minimum payments on all your debts but, on your smallest one, pay as much as you can toward it. By “snowballing” your payments toward your smallest debt, you’ll reduce it quickly and move on to the next smallest debt while paying minimum payments on the rest. The debt snowball method can help motivate you build momentum and stay on track.
Become a smart shopper
If you're serious about eliminating your debt you have to become a smart spender. Learning how to budget and sticking to it will do wonders for your finances. Read; Tips for Managing Income and Saving Money in Nigeria
Recognize your triggers for impulsive spending and figure out an effective plan to avoid them. If you’re more prone to careless shopping at the supermarket you can make sure the next time you go you take a list and stick only to what is on it.
Earn More Money
The best way to pay off a large sum of money is to earn more money. It goes without saying that earning more money would help a great deal to get you out of debt. These days you can earn easy money by starting a side gig selling things you make or a service you provide online. You could also get a part-time job! If you have a 9–5, you can consider joining Uber or Taxify as a driver in your spare time.
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