It’s a new year and being debt-free is the goal for many in 2022. The thing about owing money is that it can be overwhelming and scary at times — but it doesn’t have to be. What you need is a plan to pay down your debt in a way that’s feasible and agrees your budget.
Here’s exactly how to pay off your debt in a stress-free way.
Find out how much you actually owe
Get a clear picture of how much you owe and who you owe it to. Figure out how much you actually owe, the interest, and the time period given for you to pay. This setup will allow you see things clearer especially when you have multiple debts to sort out.
Eat the frog
Once you have laid everything out on the table, you can start figuring out a way to pay it off.
If you owe multiple debts, you can address the biggest debt first. Owing money in itself is overwhelming, now combine that with owing huge sums. Feels like a life sentence right?
Plan Repayment Into Your Monthly Budget
Once you have arranged your debts from biggest to smallest, start planning to pay them off. You have to factor in your debt repayment into your monthly plans or budget. Fix the amount that you have to direct towards paying off. This can be a bit difficult but to ensure you stick to this, you may want to set up an automatic monthly payment.
As you focus on paying down your biggest debt, continue to make the minimum payments on all your other debts. Once you have your highest priority debt paid off, move on to the next one.
Once you pay off one of your debts, move on to the next, apply the previous steps mentioned until you have paid off all the money you owe!
Your mind should be at peace now with these tips. With patience and determination, you’ll get closer to becoming debt-free.
And if you want to pay down your debts faster, the best way to do this is to increase your income. You can take up a side hustle or gig that won’t be expensive to maintain or grow.