7 Ways to Pay Off Debt Effectively

[Suba]

Financial problems are often our main problem, especially for those who have an uncertain income, especially if we have a lot of debt, then financial problems will become even more complicated, so we have to think hard about how to pay debt installments that are more than 30% of our income each month, meaning that person If you are trapped in debt, you must seriously find a way to pay off your debt. Here are some powerful or effective ways to immediately pay off your debt as follows:

1. Don't create new debt.
If debt installments exceed 30% of your monthly income, you should immediately stop creating new debts, whether it's just purchasing PayLater goods of small value, etc.

2. Make a Debt Recapitulation
Immediately make a detailed debt list or debt recapitulation, perhaps consisting of mortgage installments, vehicle installments, credit cards, etc. Provide information about the total amount of debt and debt installments that must be paid each month, then compare or calculate it with your income per month.

3. Increase Intention and Determination
At this stage you need to introspect and think healthily and clearly after knowing the total debt and interest that must be paid. Instill in yourself the determination that you can pay off your debt. Determination and strong intentions will help with discipline in paying off debts.

4. Create a Priority Scale
From the list of debts that we have created, we can determine the priority of debts that must be paid first or paid off immediately, thereby reducing the amount of debt burden.

5. Looking for Side Hustle
Looking for part-time work both online and offline will cover the income that has been used to pay debts, so that basic daily needs are not disturbed. If your debt has been paid off but you are still doing side hustles, it can be allocated to an emergency fund or investment.

6. Selling goods
You can sell items, especially items that are not used, such as having more than two laptops, televisions, so it is better to sell one unit to immediately be able to pay off debts.

7. Take over credit
If the car installment is the largest installment and the term is still long, then it would be better to take over credit (sell the car to someone else so that we are free from monthly installments). We will also get replacement money from the amount of money we have deposited.

 

[Rena]

The 7 Ways to Pay Off Debt Effectively are: creating a budget, prioritising your debts, negotiating lower interest rates, cutting expenses, increasing your income, utilising balance transfer credit cards, and seeking professional help.

These strategies can help individuals tackle their debt in a systematic and efficient manner. By creating a budget, individuals can track their expenses and identify areas where they can reduce spending. Prioritizing debts allows individuals to focus on paying off high-interest debts first, saving money on interest payments in the long run.

Negotiating lower interest rates can also help individuals save money and pay off debt faster. Cutting expenses and increasing income provide additional funds that can be allocated towards debt repayment. Utilizing balance transfer credit cards can help consolidate debts and take advantage of lower interest rates or promotional offers. Lastly, seeking professional help from credit counseling agencies can provide individuals with expert guidance and support in managing their debt.