Almost everyone is in debt one way or the other – and even most countries of the world are in debts. But debts must be paid off if anyone would live a life of peace and control.
Whether student loan debt, mortgage debt, credit card debt, business debt, or loans taken from friends – all debts must be cleared off in a lifetime and as speedily as possible, or your children may inherit your debts for another life cycle.
Here then are the 7 surest ways to pay off your debts faster and live a 2020 debt-free life:
1. Formulate a debt payoff strategy
Everyone must formulate a debt payoff strategy for clearing his debts. It is a personal thing, since no debts are exactly the same, and individual situations determine why debts accumulate and how they can be paid off. Your best bet is to create a budget whereby you cut costs here and there to scale back your expenses in order to have a leftover for debt clearance.
2. Pay off the highest and most urgent debts first
In a situation where you owe a series of debts, pay off the highest and most urgent ones first. This will give you peace of mind and the capability to deal with the lesser ones over time.
3. Shorten the repayment period by paying more
If you have a loan that is spread of 12 months, you can help out yourself by completing payment in 8 months or lesser. The only way this can be done is by paying more each month. Let’s say you’re repaying N120,000 over a 12-month period by paying N10,000 every month, you can shorten the period to 6 months by paying N20,000 if your finances allow.
4. Apply all bonuses or found money to your debts
If you earned a bonus for some extraordinary performance on the job, you must apply the extra money to your debts. If you also found some money on the ground across the street, you must also apply it to your debts. Put off the vacation or luxury wristwatch/handbag until you cleared off your debts.
5. Pick up a side hustle
Earning a little money from a side hustle will always enable you to clear off your debts faster. You can monetize your skill by mowing yards, babysitting, cleaning houses, working online as a freelance writer or website and graphic designer – anything that will give you extra incomes that can be applied to your debts.
6. Sell off everything you do not need or use
We all have household items we rarely use and could live without; why not sell them to pay off our debts? Old furniture, outdated electronics, gardening implements, out-of-print books, and car spare parts among others could be sold off to pay pressing debts.
7. Drop expensive habits
If you are used to drinking expensive wines or partying every weekend, then you must drop the lifestyle to clear off your debts. If you must buy every designer clothes and fashion accessories in the market, then you must quit the life. If you must eat lunch at work, then why not prepare your meals from home instead of buying lunch every afternoon and possibly buying for friends too?
Whatever you can do to clear off your debts as soon as possible should be done, because sometimes other emergencies happen and these after our planned ability to pay off our debts in due course.