Paying Off my Debts Fast

10:47:00 AM Rhea Mocorro 0 Comments

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Believe me when I say I was not always financially free. I too experienced facing debts in the face. And let me say that again, debts. Yes, I have more than one debt. I too have been called by the collections agency many times. Good thing I can see the number first before I can opt not to answer it. I too have faced the dilemma of knowing that my meager salary is not enough to pay my debts. Oh, the constant headache and sleepless nights because of it.

If you are in the same boat as I am, don’t worry as it can be solved. I was able to overcome my debts. Yet, it was never easy. It was not a walk in the park. Yet, in the process I was able to jot down the process and the lessons I learned so I emerged debt-free in the end. This is what I will be sharing today.

Are you currently in debt? Do you want to solve it now? Here’s how.

Identify your debts

The first thing you need to do would be to list down your debts. Have a notebook handy or a paper where you can write down your debts and the cost. Should you have credit card debts, list it down as well. It is very important you get to consolidate everything so you will have a bird’s eye view of the debts that you currently have. How much do you owe your credit card companies? How about your loans? How much do you owe to a family member? List everything down.

Pay down smaller debts first

The next thing to do would be to identify the smaller debts and make sure to pay it right away. Pay the ones that are quickest. For easier evaluation on your end, rank the debts that you have identified. Rank number 1 for the smallest and compare the amounts. Being able to crash out a debt is already a great feeling regardless of the miniscule amount. You can be able to have that sense of fulfilment being able to pay a debt or two. Plus, it will get you motivated to topple down the next and larger debts.

Strategize larger debts

The next hurdle would be eliminating larger debts. This is where you will have to strategize. There are many things you can be able to do just to eliminate these debts. The first one to increase your income and second, make small sacrifices. Since I know I have large debts before, I find other jobs that could increase my income. This is where I landed a few online jobs. My salaries from those jobs I redirected to pay my debts. Although paying the minimal amount is tempting, however, I didn’t bite the invitation. My motivation back then was to get rid of my debts fast. I also did sacrifices along the way. I skip shopping for months and again redirected what could have been my shopping money to my debts. This was not an easy feat for me before. However, with a clear goal in mind, it just sets the tone. Perhaps there are vices you can skip for now so you can be able to pay your debts.

Do not incur debts

So you are slowly eliminating debts in your life. Which is really, really good. However, this should not be an excuse to incur another debt or two. We are trying to be debt-free here so it is suggested not to create new debts under your belt. What I did is to cancel my credit cards and hide those shiny plastics. Since I love shopping so much back then, I stayed away from malls for quite some time. I know for a fact that when I go there I might end up buying a dress or two with my card so better pull yourself out from those kinds of situations for a while.

Eliminating debts can’t happen overnight unless you win the lottery. It takes a lot of focus, motivation and sacrifices. However, the lessons and the habits that you can gain in the process is really valuable so you can be able to steer clear from debts for life. And I’m proud to say, I am debt-free for the longest time already. And I know you can be able to fulfil that path too.  So let me cheer you on and say, “you can do it”.

P.S. My very first e-book is finally here. You can buy it using the Buy Now button at the right or via bank deposit. Only Php 150.00. Purchase your copy now.

P.P.S To those doing the 52 Week Money Challenge, it is Week 18 already! Did you deposit the next amount yet?

P.P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too. 

P.P.P.P.S I am also sharing my stock market secrets and information via these resources

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