One thing worth noting is financial problems. Where, you may not be financially independent, especially still in debt bondage. Indeed, debt or also commonly referred to as a loan is a solution that is most often done by people when experiencing financial problems. However, it turns out that most debts actually backfire for the borrower because sometimes when they owe they don’t pay attention to the long-term risks. In this case, of course, we cannot say if debt is a bad choice, because debt may be the only available path. If you belong to the group of people who are in debt and want to get over it quickly, then it’s worth trying 10 quick ways to get out of debt. How to ? Here are 10 right ways to get out of debt:
10 Fast Ways To Be Free Of Debt
- Prioritize Paying Off Debt with High Interest First
Debt with very high interest is sure to suffocate you. Therefore, make sure you pay off debt with high interest first. This takes an extra struggle and you may have to focus on making savings in order to pay off the debt. Paying off debt with high interest does not mean you have to ignore other debts. If there are still sufficient funds, immediately pay off other debts. You can learn more about it here
- Evaluate Your Income and Expenses
Every month check the number of bills you have to pay with your monthly income. When checking the bill, also pay attention to your expenses in detail from the big things to the smallest things, such as starting from costs for eating at restaurants, shopping, recreation, and so on. In this way, you may be surprised if you see one or several needs that are not really important, but get a large portion of the cost than others. If you have found that burdensome need, do an evaluation immediately and you should remove the need from the monthly budget in the next period.
- Create a Budget and Start Paying Off Your Debt
After completing the income evaluation, now is the time for you to start paying off debt. Eliminating unnecessary needs will certainly not make you feel a big loss, because these needs are not primary needs. For example, you don’t really like going to restaurants, but it turns out that in that month you spent a lot of money to eat at restaurants with your family. It’s things like that that you must reduce.
- Think Smart in Shopping
As long as you are on a mission to pay off debt, then you are also obliged to think smart in spending money. For example, when you go to the office, you are used to buying food for breakfast and lunch with an estimated cost of 20,000$ per day. To save more money, you can actually bring food from home when you go to the office. If it is calculated every week, you can save 100,000$ and every month you will make Rp. 440,000, which is quite a large amount of money to pay off debt, isn’t it?
- Looking for Additional Jobs
If you feel that there is still a lot of free time in the week to get additional work, then you can maximize that too. The type of additional work you are after must also be adjusted to the skills you have, so you don’t take a lot of time to do it, considering that you also have a main job. If you are confused about finding a job, then you can become an online freelancer. Being an online freelancer can be a good option for you too, because by becoming a freelancer you can work from home while relaxing with your family. Currently, there are several freelancer sites in Indonesia that you should visit if you want to get additional work.
- Make sure your expenses are less than your income
When your expenses are greater than your income, it is almost certain that you will fail in your attempt to get out of debt. According to some financial planning theories, your total expenses for regular monthly expenses should not be one-third of your monthly income. You can use the remaining 2/3 of the funds for savings, investment, insurance, and also emergency fund preparation.
- Don’t Delay Payment
If your funds are available to pay off debt, then you should immediately make payments. Believe it or not, delaying payments can have fatal consequences because you may be tempted to use them for other things. Given that the money is not included in your monthly expenses. If the funds are already available, then assume that the funds never existed, so you will not want to use them for other purposes. Also remember, delaying debt payments can result in fines.
- Discipline in Implementing the Plan
Make sure when you are in the process of paying off debt, you are not in debt again. If you do this, your motivation to pay it off will likely decrease significantly. If you really have an urgent need, you should reconsider whether to borrow or make a few sacrifices by reducing some expenses to meet these needs. If indeed these needs can be overcome with a little sacrifice, then you should make that option.
- Don’t Think About It Every Time
Thinking about your struggles while trying to pay off debt is perfectly legal to do. But do not think about this all the time, because it will certainly make you depressed. Remember, if at the beginning you have planned well and everything goes according to plan, then you should not think about it too much anymore.
- Asking for Family Support
Invite your family to make savings with a promise to give them a gift when the debt is paid off. When you are no longer in debt and your financial condition is stable, it will be possible to fulfill that promise. This way, all of your family members will at least support austerity measures or budget cuts.