How to get out of debt? The 17 best ways to become debt free
Yes you want to get out of debt, this is the number one thing you should consider to become debt free, you remove the hustle from yourself of someone or companies demanding you
How to pay off credit cards fast?
- Make paying a debt a priority
- Complete one debt at a time/ use avalanche technique
- Pay more than the minimum
- Do debt consolidation
- Make a budget
How to pay off debt fast?
- Create a budget
- Make a list of your expenditure
- Remove non-essential items within your expenses
- Stop using credit cards
- Refinance your debt
- Start a side hustle\
- Sell off items you don’t use and take that money towards paying off debt
- Decide on which payment method is right for you
What are the best methods to pay off debt?
- Avalanche method
- Debt snow ball
- Debt consolidation
- Debt refinancing
- Congratulations, thanks for starting your journey to being debt free
Should you pay debt or save? When should you do one of them?
Before deciding on either to pay debt or save, you need to know how much interest in going to be paid on debt and how much interest you will earn from saving
Pay debt when the interest rate being charged on debt is greater than the interest you will earn from the savings
To determine what to do, you should compare the interest rates on both sides of the coin
Should I pay loan or invest?
When should you pay a loan or invest?
This is almost the same question as paying debt or saving
What you should consider is the interest being earned on investing or interest being paid on loans
If the interest you’re paying on loans in greater than the interest you will earn from investing
I advise you pay a loan but if you expect the interest of investing to be greater than that on a loan, it is better to save
N.B Remember you need to pay all the minimum payment your supposed to pay on all your credit card /personal loans before you can compare saving or investing
Should you pay a loan or save for an emergency?
This is a tough question, you cannot determine when an emergency will ever occur, what will be the magnitude of the emergency and how to prepare for it
So when it comes to paying debt or saving for an emergency, I recommend that you pay the minimum requirement for the debt and leave the balance to be put in an emergency fund
In the case where you cannot afford to pay the minimum requirement, I do recommend that you put money in an emergency fund
The best solution between paying off debt and saving for emergency, I recommend that you do both of them, this is not in contrast with the answer above, you need build your emergency fund as you’re paying off your loans
Don’t do one at a time unless there are other factors like paying off loans and then losing your job
We are keeping other factors constant
Why do people stay in debt?
- Not setting up SMART goals
- Not making it a priority
- Failure to sacrifice money to pay off debt
- Being not committed towards paying debt
- Band wagon or keeping up with the jones
- Not willing to change their habits
- Losing hope in clearing off debt
- Failure to learn good money habits
- Accepting the saying of the poor that “it is normal for someone to have a debt” this is just a myth which is not correct, it only keeps in debt
- Giving excuses that you have limited money, why not start a side hustle
- Continuing to use credit cards even when your still in debt
Commonly asked questions about debt
- How to pay off your debts?
- Should you pay off debt or save money?
- Should you pay off debt or invest?
- Should you pay off debt or save for an emergency
- What are the best methods for paying off debt?
- Is paying debt worth it?
- Pay off debt or save for a house?
- What are the reasons why people stay in debt?
Being debt free starts today, so you need to start your path to becoming debt free
Follow the above methods and I promise you that you will become debt free in the shortest time possible
If you have more than one loan, I recommend that you use debt avalanche, it will help you pay less money compared to use debt snow ball method
What is debt Avalanche? It refers to paying debt with the highest amount of interest, it involves paying off all the minimum requirements and then working hard to pay off a debt that has the highest amount of interest
If you choose to go with debt snow ball, you will have to pay all the minimum requirements and then work hard towards paying that minimum debt first
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