Debt Payoff: Find Out How

2007-03-08 10:33:40

( Financial )



Paying off all your debts should not remain a dream. Complete debt payoff can be a reality if you follow these pieces of advice.

Rationalize Your Budget

Monitor your spending for each month. Check if you are spending beyond your monthly income. If you are overspending, then you need to do some serious budget cutbacks. Stop making unnecessary purchases. Instead use more of your monthly income to pay off small loans until you clear them. A leaner and trimmed down budget will bring you several notches closer to total debt payoff.


Try A Second Job

If you still have some spare time left, why not getting a second job? With the extra income, you can pay a few small loans thereby reducing your debt burden. Doing part time work on your spare time even for just a couple of years will do wonders to your pursuit of debt payoff. A second job needs to be as close to your home as to minimize travel expenses. Also, look for one that suits your interests for you to be motivated to keep that job.

Bills Must Be Paid Early

Debts will just keep piling up if you miss paying your bills on time. Start a habit of paying your balances as soon as you receive then and not when they are due. By doing this you save yourself from paying charges for late payments and higher interest rates. You also show your creditors your commitment in repaying them which could lead to a more lenient approach on their part.


Get Rid Of The Cards

Debt payoff is close to impossible if you have a ton of credit cards in your purse. Do away with all your credit cards except for the one that charges the least fees and lowest rates. Use this remaining card only when completely necessary.


Get Help

You don’t need to do this all alone. Financial advice from credit counselors and fiscal advisors can enlighten you on what you need to improve on and what courses of action to take. They can even direct you on how to calculate payoff time. Of course, emotional support from family and friends wouldn’t hurt either.


Never Run Away From Your Obligations


Sure creditors can sometimes be too upsetting to deal with but this is not enough reason to run away from your debts. The only thing you’ll gain is a ruined reputation which will make your debt payoff dreams much harder to reach. Face the problem and never run.


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