Demonstrate self-control in taking buying decisions to pay off debts quickly
Since it is a well-accepted fact that people have to live with debts, it is natural that you would like to make life easy and remove the stress arising from debts. Stress starts building up when you either owe too much money that is beyond your capacity to pay back or you find it extremely difficult to manage too many creditors.
Whatever is the case, the ideal solution is to pay off debts as quickly as possible so that the balance does not acquire menacing proportions. If you have credit card debts, paying the minimum balance is the most damaging decision that you would take. The interest rate on credit card keeps compounding on the balance that you carry forward every month, and it could soon grow so much that you could never think about paying it off. Therefore, paying higher amounts is the way to wipe off the credits quickly. Moreover, this is a money saving approach in the form of paying lesser interest on the balance. Read on to know more about some other ways of efficiently getting out of debt while saving some money too.
Differentiate between wants and needs
The problem of debts begins when we give too much importance to our wants over needs. Since wants are not the basic requirements, which needs are, it requires some self-discipline to keep the wants under control. Wants are nothing but fanciful wishes that keep growing just because we tend to indulge in it for getting the satisfaction of owning things that we can even do without.
The tendency of buying what you want and whenever you feel like is at the root of the problem of growing debts. You must realize that it is not possible to buy everything that you wish just because you cannot afford it. Just as you should not bite more than you can chew, do not buy something when you do not have the money. This approach leads to saving some money that you can use to pay off debts.
Debit cards save money
According to surveys, people tend to spend more when they use credit cards. On an average 15%, higher spending happens when you use credit cards. Since credit cards do not immediately put stress on your bankroll, you tend to become a bit reckless in expenditures. Therefore, using debit cards or cash payment could help to save the money that you would have otherwise spent had you used credit cards.
Target the expensive debts first
Allocating your funds properly for paying debts could help to pay off debts faster. Select the debt with the highest interest and make the maximum monthly payment for it while paying the minimum amount of debts with lower interest. As the most significant debt is paid back early, you can use the money for paying other debts with ease.
However, if you feel that you need professional guidance in debt management, talk to the experts at for showing the most efficient way of living a stress-free life with debts.
Thank you,
Glenda, Charlie and David Cates
