Unless you have been financially savvy since you were a teenager, you probably have, or have had a few debts over the years.
Maybe you are still paying on some of those debts. My dad used to joke about one of his credit cards that he is still paying for pizza he ordered when he lived in Maine (over 20 years ago).
That can really put some debts into perspective. If you are not aware of how to pay down your debt then you can be paying WAY more on them and for a longer period of time than you really need to.
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I have invited guest contributor Kazim Raza here today to share his insights on how to remove debts with a personal finance credit.
Essential Tips to Remove Debts with a Personal Finance Credit
How is a healthy mind and healthy life possible without financial freedom?
The cost/expenses analysis when done wrong can lead an individual into the abyss of debts, however, it’s the coming out of that abyss which is problematic and not the other way around.
If you’re someone currently rolling in the abyss of debts, worry not, you’re not the only one.
Opulen Financial Group Arlington VA gathered the following 10 tips to get your way out!
Budgeting is key
Never forget to create a budget for yourself. Having a certain amount of expanding can bound you every time you try sneaking into your favorite brand outlet. Hence, cutting back you’re more than cost expenses which led you here in the first place. After all, you know, if you don’t scale back your spending, you’ll dig yourself a deeper hole.
Not sure how to start and set up a budget, check out Family Budgeting Basics-What You Need to Get Started
High interest first
By paying off balances with the highest interest rate first, you increase your payments to the rest of your debts.Use your money wisely, and tick off that big, scary fish first thing first.
Make a dent in your debt
This is your savior! Try paying more than your credit card’s minimum balance, each month.
Thus, if you’re making payments monthly, gradually moves to weekly, and switching the amount from let’s say $50 to $100. It’s easier done than said!
Transfer your balances
A zero-interest balance transfer can save you hundreds on the interest. And it’s as easy as having a high-interest card with the confidence that the payment can be made in a few months only.
Takeaway: You don’t want to pay AFTER the balance transfer expires though, or else the pros backfires.
Want to learn how to fix your credit? Read A Step-by-Step Guide to Fixing Bad Credit
Use cash instead
For this one, you need more willpower. Regardless of the cash back and regular presence that you may get from accumulating credit cards, halt that accumulation and keep that aside from your wallet. Instead for the time being make cash your best friend.
Why not save some while your at it and try the 52-week savings challenge.
Bonuses are bonuses
Whether it’s your yearly bonus coming up or the holiday ones, you know the drill by now. Avoid the temptations and utilize them in the better good- paying off your debts!!
Don’t save credit cards online
The information stored at the site you regularly do online shopping from makes it easier for the stores to charge you for the items you DON’T need. This instant, go and remove that info from the site you recently checked out of and save it all up instead.
Sell unwanted or unused items
Agreed these gifts must hold deep, sentimental values to you and surely brings fond memories back every time. But is it enough? All those presents from the birthdays, wedding, anniversaries, holidays and casual dinners that are lying at the back of your closet, can surely come to greater use.
Snap some attention-grabbing pictures, do a background check for a fair and reasonable price list and sell these up. This can add you up a good amount of cash and catalyze your journey to financial freedom instantly.
If check and balances are done right, of all the money and its spending, the question of debt must have never arrived. So, ask yourself again:
Does this particular jacket have to be high-end or the thrift store would do for now?
Daily lattes, you sure?
How about walking this mile instead of a taxi?
Trust me, minor changes like this and you don’t even have to sacrifice your lifestyle while altering your habits.
Wealthy people often don’t spend like they are wealthy, learn how to spend like a millionaire!
Paying off your debts isn’t a curse bestowed upon you. It’s merely a phase. And like every other one, this shall too pass one way or the other. However, in the meantime, don’t forget yourself. You’ve been working really hard and it’s time to treat yourself with a little you time. So, every time you tick off yet another payment goal from your list, you know what to do. Don’t forget to be easy on yourself amidst this interval.
You’ve come this far. Don’t give up now. Just keep going, following these tips and you’ll get there at the right time.
Kazim Raza is a professional blogger and digital marketer who works with business owners on branding and marketing. You can find him on Facebook here.
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