Getting Rid Of Your Debt, Bit By Bit

PICTURE: m3wealthadvisors.com

Onthatile Sepeng

Knowing where your money goes and budgeting is very important. In order to get out of debt one needs to know how much they have and what they use it for.

Getting out of debt can be an overwhelming task, especially when you are in too deep and don’t know where to begin.

First try spending some time analyzing the way you spend your money, this will help you save some money. It could be cutting down on your data and airtime use, cooking at home instead of takeaways, or finding cheaper and smarter ways to bank.

Rather than trying to quickly pay off your debts by taking loans, pay using the debt snowball method, where you start of by paying the smallest balances and paying the minimum amount on the bigger debts.

List your debts in ascending order and pay them off in that way, it will feel good to see some of the debt being cancelled off of the list. And each success will motivate you to pay more debts of.

When it comes to store accounts, when you are done paying off your debt and decide that you no longer want to use the account, don’t just cut the cut. What you have to do is go to the store and close the account and request a letter stating that you have paid off the debt and close the account. Submit this letter and submit it to the credit bureau.

Stop taking unnecessary debt, just because you qualify for something, it does not mean you can afford it. Let’s try by all means to live within our means. If your expenditure exceeds your income, try cutting down costs.

Once done or when in the process of paying off your debt, set up an emergency fund, where you will turn when days become dark. Ensuring that you don’t get into anymore debt because your micro-oven is broken or you got mugged.

Commit to pay off all your debts using the snowball method, repeat until they are all complete.