Several factors can lead us to find ourselves in debt: illness, emergencies, unexpected job loss, etc.
Debt can cause stress and anxiety and negatively impact your overall health. If you find yourself overwhelmed by excessive debt, it’s never too late to start taking steps to pay off your debts and get back on track financially.
Here are five ways to pay off your debt and stay debt-free:
Know how much you owe
Before you start tackling debt management, you need to know its full scope. Determine the amount of your debt in all its forms and calculate the grand total. The rule of thumb is that you should pay the bills with the highest interest rate first.
Create a budget, track and reduce expenses
Sometimes debt is the result of foolish overspending. Set a budget and keep tabs on your spending to put you on the right path to good credit. Have a clear idea of how much money you need to pay your bills and how much you have left for savings and entertainment. Set a limit and reduce your spending to stick to it.
Pay more than the minimum payment.
If you only make the minimum credit payments each month, it will take years to pay off your debt. Where possible, make additional payments to start reducing your debt. This will save you money in the long run because you will pay less interest on your debt.
If you owe money in the form of many different debt repayments, you may benefit from debt consolidation. This approach allows you to make one low interest payment per month for all your debts. It can also help you pay off your debt faster if you make more than the minimum payments.
Negotiate your debt
If you find yourself stuck with debt you can’t handle, contact your creditor to see if they can work with you.
Sometimes they’ll reduce the amount owed or help you create a more manageable payment plan.
You can access instant and payday loans online even with a low credit score with iCASH. Visit icash.ca to get started.