Ways to Pay off Debts
3 easy ways to pay off debt
Paying off debt is the first step towards financial freedom. A majority of Saint Lucians are deeply in debt, and most become overwhelmed when attempting to pay off and manage those loans. If this is you then the first thing you should do is take some time to assess the type of debt you have. Also assess the amount of money that you owe before you begin. Understanding the types and amounts of your debts will assist you in developing a customized debt repayment strategy.
Here are 3 tips to help you manage and pay off those debts
1. Pay more than the minimum balance
You must pay more than your monthly minimum balance to have a significant influence on your balances. Make extra payments to the loan on a monthly basis, and apply lump sum payments, such as tax returns or patronage refund, to your debts. Your goal should be to pay off your debts as quickly as possible.
2. Use the snowball method
The snowball approach is a debt-paying plan that helps you pay off your loans from smallest to largest. Any extra income you receive should be applied to your smallest loan using this approach. When the smallest loan is paid off fully, apply the payment you were making toward it to the next smallest loan installment. As a result, more money will go to this debt, allowing you to pay it off faster. As you pay off each loan, you will feel a sense of accomplishment.
3. Consider debt consolidation
Consolidating your debts is an excellent approach to get out of debt faster. It allows you to combine several debts into one. This means that you would only have one payment at the end of the month. Most of the time, the total payment is less than the sum of the individual installments. This provides you with additional funds to put toward your monthly payment, allowing you to pay off your debt sooner.
References
Debt Consolidation - How to Consolidate Your Debt. (2021). Debt.org. https://www.debt.org/
How the Debt Snowball Method Works. (2021, September 21). Ramsey Solutions. https://www.ramseysolutions.
Steinberg, S., & Snider, S. (2019). 10 Easy Ways to Pay Off Debt. US News & World Report; U.S. News & World Report. https://money.usnews.com/
Zinn, D. (2019, July 15). 10 Ways to Pay Off Debt Fast. Credible. https://www.credible.com/blog/
