By: Raymond James
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals
Having outstanding debts can be a daunting and frustrating experience, especially when it feels like you are constantly paying just to keep your head above water. However, there are ways to simplify the debt payment process to make it more manageable for you. Here are ten tips to help get you started:
Create a Budget and Stick to it
The first step to taking control of your debt is creating a budget and sticking to it. Determine how much money you have coming in each month and what expenses you need to cover, including your debts. If you are not able to cover all of your expenses with your current income look for ways to reduce them or find new sources of revenue.
Start with the Lowest Debt
When you are creating your budget, start by focusing on the lowest debt that you owe. Pay as much of it as possible each month to get it paid off quickly. This will help give you a sense of accomplishment and motivate you to keep going.
Create a Payment Plan
If your debts are spread out over several different creditors, it can be difficult to keep track of who you owe what and when. This is where a payment plan can come in handy. Create a list of all of your debts, along with the amount that you owe and the due date. This will help you stay organized and on top of your payments.
Use a Debt Calculator
There are several online calculators that can help you figure out how long it will take you to pay off your debts if you continue making the same payments. This information can be helpful in creating a payment plan that works for you.
Make Extra Payments When You Can
Whenever you have extra money, put it towards your debts. This could be money from a side job, a tax refund or any other windfall you may receive. Even an extra $50 each month can make a big difference in the amount of time it takes to pay off your debts.
Create a Debt Reduction Plan
If you have multiple debts, consider creating a debt reduction plan. This involves consolidating your debts into one loan with a lower interest rate and then focusing all of your efforts on paying that loan off.
Use Cash Instead of Credit
Try using cash instead of credit cards. This can help you stay within your budget as well as help you avoid accumulating more debt.
Get Help from a Financial Counsellor
If you are feeling overwhelmed by your debts, consider getting help from a financial counsello. They can assist you in creating a payment plan and provide support and guidance throughout the process.
Take Advantage of Debt Relief Programs
There are several debt relief programs available, such as credit counseling and debt consolidation. Evaluate your options and see if any of these programs would be a good fit for you. You can check out Rapid Loans for their debt consolidation programs.
Avoid Making New Debts
The best way to simplify your debt payment process is to avoid making new debts. This means being mindful of your spending and only purchasing what you can afford.
By following these tips, you can take control of your debt and make it more manageable. Debt doesn’t have to be a stressful experience – with a little organization and effort, you can get it under control and start enjoying your life again.