Debts can crush and weigh you down but what we do know is that if you really want to get out of debts the most important thing is to start making better financial decisions.
Below are some action plans we think can help you get out of debts.
- Use the 50-30-20 budget rule for your spending
The 50-30-20 budget rule is an effective and simple strategy to help maintain a healthy money habit. 50% needs, 30% wants and 20% on your savings and debt.
- Identify your Debt
Make a list identifying who you owe and arrange this list in order of importance. This list should contain the amount you owe each creditor, the interest rate and the agreed means of payment.
- Make it a priority to pay your debts before satisfying your wants
Now do not forget that no matter how happy your wants make you as long as you have debtors on your neck it is your responsibility to jazz up and pay up. No enjoyment for who is owing money.
- Set a reminder to see how far you have paid up
Choose a payment timeframe that is reasonable and set a reminder for yourself on the set dates so you don’t forget to pay.
- Take your debts as your responsibility and give no excuse for not paying back
Commit to a payment schedule that works for you and the person who lent you money. Show you are committed to paying your debt, nobody likes to see their debtor feel nonchalant about their debt.
- Get a side hustle
Do you know what’s better than one source of money? Two. A side hustle helps you make money outside of your 9 to 5 job. I mean more money gives you the freedom to buy things you need or want, lower any financial worries, and also pay your debts.
I hope these few tips will help as you navigate your way out of debt. If you also need to have better control of your finances, see here (add a hyperlink for our financial mantra post) for an article we put up on financial mantras you should live by. Good luck on your journey out of debt.