How to Get Out of Debt in a Year
Borrowing money may help you in buying some fancy stuff that you cannot buy on your own but it does bring a lot of baggage with it. Although in the short term it brings joy, in the longer run, one has to pay the debt off and also pay the interest that is charged on the amount that was spent.
Some people can have a lot of debt on them and it is not easy to get rid of it. However, if the endeavour is approached the right way, one can get rid of the debt in a single year’s time. It takes a lot of commitment and perseverance to achieve that goal though.
Instructions
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1
Stop Taking Debts
The first thing to do is to stop making use of any kind of loan that you can avail. These can be personal cash lines, credit card or any other kind of debt. Make sure that you only make a purchase on cash. This will stop the debt from increasing. -
2
Make it a Mission
Loans can take years to be paid off so if you want to do it in one year, it has to be your mission. Your actions and the plan should move in unison for you to be able to achieve that goal. It is easier said than done but it needs to be done. -
3
Cut Corners
Cut on the expenses that you can avoid. There is no need to have cable television when you can watch normal television on offer. You can also buy products in bulk to save on prices. Do not waste electricity and use as little as possible to add to your savings. -
4
Balance Transfers
This is particularly useful in case of credit cards. You can balance transfer from one card to another on a lower Annual Percentage Rate to significantly reduce the amount of interest that you have to pay every month. The amount that you will save will add up to the payments that you will be making. -
5
Earn More
Try to increase your income so that you can pay more. It is important that you pay as much as you can and an increased earning can certainly help in that matter. A second job or a side business on temporary basis to get rid of the debt in a hurry is a great idea.
