Money Matters: 4 Easy Ways To Pay Off Your Debts

money matters, money talks, tips and tricks

Paying off debts should be a primary concern for everyone whatever your status is. Although, it might be true that there are millions like you who are facing the wrath of debt out there in the world, this should not be an excuse to let it accumulate and leave it unattended for a long time. It is not healthy to live off month after month by owing people money. Β If you are this neck-deep in your debt, it will start to take its toll on your relationships with children and family member, as well as your health.

Keep A Record Of Your Debt

If you are in debt, it is wise to be on top of things by keeping a record of all your debt. This way you can easily assess the clear picture of how bad your debt situation is and formulate a plan to work your way out of it. It pays to keep a record of all your IOU’s, as well as of your monthly bills, including your mortgage or personal loans, car loan, credit card bills, as well as your medical bills. Everything should be taken into account. Get a credit report if you must to make sure that all your debt statement is accurate and up-to-date.

Create A List

Nothing will make your debt more tangible that creating a complete list that includes the rate interest for each of your debts, the monthly bills, the due dates and more. You should also include the amount you have already paid, as well as the minimum payable amount for each, along with any other specific clause or deadlines. It is also better to make a chronological list of your debt where the one with the highest rate placed at the top. After creating your list, select a goal as well as a pay-off plan to pay off each of the items on your list. You can also install an app or search for debt advisor online to aid you with your plan.

money matters, money talks, tips and tricks

Create A Budget

Creating a budget is the most important thing to do if you want to regain control over your finance. Cut all the extra spending, delete all the wants from the needs and make a comprehensive budget sticking to the bare necessities. Spend according to your budget, follow it diligently and monitor it from time to time to eliminate any chance of overspending or mistakes.Β  With all the money saved, you can now start paying off the debts according to their order in your prioritized list.Β It will be easier to monitor your progress this way.

Negotiate When You Can

Try to negotiate for lower rates and higher tenure from your lender whenever you can. You should also research for lower rates if you have to take any debt consolidation loan for paying off the debt. Also, take advantage of loan reconstruction schemes and programs whenever they are offered so you can get discounts on interests and penalties. But it would all depend on your credit score to get a loan as well as loan reconstruction. Therefore, it is necessary to keep a good score by clearing your debt as fast as you can.

images via Pixabay

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34 Comments

  1. Great tips you have in here, Vix. My post about money-saving tips also includes paying off debt as one of the best ways to save. As a teenage mom then, I also experienced asking my siblings and friends to lend us some money for my school needs.

    1. I guess having debts is inevitable and somehow this will always be part of our lives. The key is to find ways to pay off these debts on time. Lucky are those who do not need to borrow from anyone ever!

  2. There is nothing wrong with debt as long as you know that you can/will pay for it. Yung iba kasi nagkakasakit bigla ng amnesia pag may utang. hehehe!

  3. I guess one of the main priority for financial freedom is being free from all debts. And then you’ll be able to go to the next steps of stabilizing an EF, insurance, savings and investments. Cheers to financial freedom πŸ˜‰

  4. Those were great tips. I think one should be responsible enough and really should be disciplined enough to stick with his or her own budget so as not to acquire debt and also when paying, it also applies..

  5. Great tips! I’m thankful we’re debt-free. We always go by living within our means. We don’t own credit cards. If hindi kaya ng cash on hand, then we save up. If we have the money na and the item we wanted isn’t available anymore then it’s not for us. πŸ™‚ Less temptations. Hahaha! The last time we borrowed money was when we fell short when I gave birth. Konti lang naman, so we were able to pay it agad.

  6. Great tips! Will keep them in mind. Being debt free (even just cleared credit card bills) is the best feeling in the world.

  7. I tread between two mantras when it comes to financial decisions: (1) Live within your means; and (2) Live a lifestyle a level lower than you can afford. Following these two made me stay out of debt. πŸ™‚

  8. We’d like to keep ourselves debt free. Though it’s inevitable, as much as possible we need control it. Anyway, great tips you have in here. I will surely take note of this.

  9. we recently celebrated being finally and completely debt-free! these are exactly the same things we did and a bit more customisation to our situation, hehe. πŸ™‚ Great blog!

  10. These are helpful tips Vix. Jeff and I could not sleep knowing that we have debts to pay so we always make sure to only use our card if we can really pay for it, or just pay straight cash

  11. Paying of debts is a way of saving, sometimes people don’t notice it but it can pile up and eventually take over everything you earn! Steady payments with correct budgeting can really help pay off debt.

  12. This is a nice tip. As much as possible I avoid debts, that is one reason I don’t have credit card. i try to spend in cash and i do wise budgeting so i can expand what our small income can do for our daily needs…

  13. To pay off our debts is something I aim for. Hoping to do it sooner rather than later. Will definitely take these tips to heart. πŸ™‚

  14. These are all great tips. Still, let’s not forget that the to pay off our debt, we should accept that we have debts too. Some people kasi, in denial and will just rely on next month’s paycheck.

  15. I find negotiating helpful, especially when I’m a few days late in settling my credit card bills. If you negotiate well, you won’t be penalized. The Php500 late charge is still a big amount that can be used to purchase more important stuff.

  16. Live within your means, that’s one of the main lessons we try to teach our kids so they will be debt-free.

  17. Great tips! I always have a list of my debt(s) and kung when ako nagpay or naghulog so I keep track of when I will be able to get off of it.

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