Young minds are always considered to be precious, for they will take this civilization forward, from the point where the old gets withered!
They will be embarking on new discoveries, groundbreaking inventions, and definitely make up the new face of
But, if these young professionals have too much
Thus, to become “ready-
The issue is, by the way, not at all why debts are a hindrance to a happy and financially stable life, or why you should clear debts!
This post is created so as to provide you the best ways and strategies that can be used to pay off insurmountable debt amounts.
Note: This page contains affiliate links, which means that if you buy something using one of the links below, I may earn a commission.
In what smooth ways can you pay off debts?
Debt ethics and pros and cons of debts will definitely be touched, in this blog post, at times! But, what will be evaluated more, are the modern-day tactics that people are using to break the debt chains.
Never rush in paying off secured debts.
The biggest of all mistakes that people, in general, make is that they get all hurried up in paying off mortgages and other big loans that are secured.
You need to understand something deep down here. There are good debts, and then there are baddebts. Both are important to have, but it is not necessary to pay both of them fast.
Good debts, overall, mean that they carry some sort of investment factor along with them. Theseinvestments quotients can either be materialistic assets, or anything of moral significance.
The mortgage that you have, is a high priority secured debt. If you have made the right purchase decision, then you will end up owning an asset that has significantly appreciated in value, over the years.
Again a student loan, that you have utilized in the best ways possible and are therefore successful in your career, is not a bad loan or debt either. It can be said to be a moral investment that you have done.
A student loan might not hold a physical asset, but it has something more than that. It guarantees you a well secured and successful financial future.
These debts are what we call good debts. And, there’s absolutely no rush in paying them off fast. Take your time and go according to the payment schedules given to you by your lender.
Thus, you should be more focused on paying off the unsecured consumer debts, that carry interest rates way more higher than the secured debts.
For paying off your unsecured debts, you should develop a payment strategy.
As per the typical meaning, unsecured debts are also referred to as consumer debts. They are the most general form of debts, we use.
Unsecured debts include credit cards, personal loans, payday loans, and any other type of debts that has no security, asset, or collateral attached.
These debts usually carry high interest
What payment options do you have?
You can surely start off with the Debt Avalanche Payoff Strategy. It has great significance if you have multiple debts with
With this plan, you first encounter the debt that has the highest interest rate. It’s better that you organize your debts in
You will have to target this high interest debt and do extra payments, for getting rid of it as fast as possible. This extra payment amount depends on your affordability, as you will have to continue doing the minimum payments for your other debts falling in the line.
Now, once you have cleared the highest interest one, you start to hit the next high rate debt by doing extra payments again.
This way, you will be able to pay off all your debts, if not soon, then at least sometime later, but effectively.
Still, on the other side of the river, you have professional debt relief options as well, that will help you to organize your unsecured debt payments.
Example of one such strategy is Debt Consolidation. Highly effective and easy to use, in nature, a professional debt consolidation plan can really help you to clear debts in a more systematic way.
You can refer to the online websites of debt consolidation companies and law firms, to get good details about it.
You also have the credit card balance transfer that you should use, if you have too many credit cards to keep up with.
With balance transfer you get all the balances from your existing credit cards into a new credit card, that has a credit limit equivalent to your total credit card debt amount.
Still all of the hard work can go to vain, if you don’t budget in your expenses!
Nothing can supplement a well designed budget.
A good budget is really what you need. Let me tell you that. You will need no payment strategies or anything if you are having a well-designed budget.
In
There I have discussed quite a number of budgeting strategies that we all should start to follow at some time or the other.
A good budget will give equal importance to savings and debts! It will disburse your income seamlessly into all of your expenses, and then also save space for doing savings.
If you are successful in forming up a budget, that gives debt payments the first priority, then you should not experience many issues with paying off your debts fast.
Hence, a budget is your call, my friend!
Earning more income will help you eliminate debts faster.
We have now come to a point where everything is invariably dependent on the income you have.
The more is your income, the better are your chances to be debt free. Therefore it’s better you find out your best ways to make more money, regardless of your income.
Now, the question is how should you utilize your extra income. Should you be making extra payments with that, or should you be expanding your savings to reach a better financial position?
I would suggest you
But, if your debt amounts are pretty manageable with your current income, then anything extra you make, you can use it to build savings or do investments with it.
Bring in a few changes to your lifestyle so as not to incur more debts.
The situation might still not see betterment, and you might never get clean of debts if you can never bring some good changes to your lifestyle and habits.
A frugal zero spending lifestyle is obviously the most desired one, but no pressure on you.
You are reading this post, and have come down to this part.
Assuming you are young, smart, intelligent and money savvy, I have full faith in you. You can really mold your lifestyle to your benefit.
You have ample time in your hand to realize any lifestyle mistakes you have made. Things like unethical spending, throwing thick dollars on booze and party, or being lazy and missing out on opportunities to have a good income.
For in the end, it’s your life.
It’s totally on you, how you will play the game.
As a footnote suggestion, all I can say is, give more importance to your savings, and the least importance to those enticing credit cards (and any other consumer debts, that include payday loans too), that give you false hope of possibilities.
Take care mate! May this life bring you enough peace and
Guest Post Author
Andy Masaki is a blogger and contributes specifically
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