Once again we discuss debt payment. I know sometimes it can be unavoidable going into debt. You may be at a low paying job with growing needs,perhaps you have urgent issues to settle like a medical bill or school fees, or mortgage. It is understandable at times, however this article is also aimed that those who refuse to stop accumulating debt due to bad habits of overspending,lifestyle luxuries and wanting to look good. Some of us suffer from the "appearances" illness.You need to keep up a certain kind of image to be known or recognized or keep a status or title. Now am not here to criticize you. It is important to keep your pride but it is also important to keep your dignity.This means you should also look at the bigger picture and realise, debt will eventually lead to a downfall so a little minimization can go a long way to spare you some rough consequences.
Here are some few ways you can start paying off your debt this new year!
1.Creat a budget to cut back on spending.
First you nee to calculate your debt. There are several online sites where one can use personal finance tools to calculate debt and also, don't you own a calculator?? Make a list. Jot down names and amounts, then start cutting back.
You don't need to go buy a cup of tea at Java after work when you can do the same at the comfort of your home. Neither do you have to say yes to a nyamachoma binge weekend when all you have is money for house shopping. Mid week you will feel the pinch when you have to park your car and use the bus to work on a rainy day! You can carry your lunch to work instead of ordering something from the cafe. You won't believe how much you'll have saved from your weekly budget! Now you can put that money where it needs to be.
2.Pay off your most expensive debt first.
You know how much you borrowed from whom, and sometimes the most expensive debt is the one that will cause you the most emotional ditress. Pay back that guy who calls every two hours because you didnt pay him when you said you would.Make sure to pay off the debts or loans with the highest interest and prioritize to make the usual payments to your SACCOS or chama,and keep in mind your monthly living expenses. You should start feeling difference after your initial payments are made.
3.Pay off more than the minimum balance if you can.
If you owe 10k you can put in 15k to show goodwill and the next time you make your payment it can be a pleasant surprise to find that you owe less this time!It could be an unusually stressful period so you will thank yourself for putting in more cash.
4.Stop spending your debit or credit card.
This goes both ways.When you don't carry cash you feel you probably won't spend more,but with direct access to the money you have at the bank your VISA card can soon read declined because you just kept swiping and spending at the new mall in town. Carry limited cash.It means you only spend what you need to.
5.Put any bonuses towards paying your debt.
If you work at the king of organization that rewards their employees with a regular bonus,maybe it's time you spend it elsehwere other than logging onto Jovago to book for your stay at Tiwi beach!
6.Sell unwanted gifts and household items.
7. Ask yourself, what can I do without changing my lifestyle so much?
That is the first step to a new hopefuly,lifelong habit.