Are you ready to finally address your debt and start your journey to a debt-free life? Excellent! That is the first step to fighting bad debt and paying up on what you owe. Even though most people believe that the best way to clear their debt is by getting a better-paying job, you can get out of your current debt if you practice good money management.
This dynamic guide will involve getting urgent cash from a licensed moneylender in Singapore to give you the money you need to start a business going for extra cash flow or as a way to offset another high-interest rate loan. Apart from that, here are other things you can do to get yourself out of debt and on the right track:
Choose Your Debts Well
High-interest rate loans are the worst. They will keep on piling up no matter how hard you struggle to pay them. A clever payment option could be taking another low-interest loan to get a lump sum to pay part of the high-interest loan. This will drastically lower the total interest you will finally have to pay to settle the first loan. Just remember to diligently pay the second low-interest loan to keep your credit score up.
DIY Whenever Possible
Do you often hire someone to take care of the lawn, clean your house, or do laundry as you relax and watch TV? Well, it’s time you stop doing this and start doing things yourself. Take care of menial jobs you would otherwise have hired someone to if you have the time. Calculate how much you would have paid someone else and put that money toward your debt repayment plan. Not only will you get more involved with your own life, but you’ll also be proactively doing something to settle your debts.
Be Shrewd With Windfall Money
Windfall money is those funds that come unexpectedly out of nowhere. This could be from winning the lottery, a present from a relative on your birthday, a work bonus or tax returns. Most people celebrate this money by spending it all on fun or holidays. If you want to clear your debt faster, you should consider putting this windfall cash into better use by paying up your debt. You can still keep some for the fun – just don’t spend all of it without settling some aside for your debts.
Try Debt Snowballing
Debt snowballing is a great repayment concept that could discipline you especially if you are handling multiple debts at once. The philosophy focuses on making minimum payments on larger loans while paying extra on the smallest debt. This way, you can clear smaller debts faster and move on to the bigger ones. This makes it easier to see progress and stay motivated. The only loophole in this plan is it doesn’t factor in the interest rates of different loans.
Sometimes, settling your debt faster is just a matter of organising your spending and saving habits so that you can put each and every coin to better use. The above tricks might be all you need to bring yourself closer to a debt-free life.
