No one likes being in debt. When you owe money, whether it be on a loan or a bill or simply some money you borrowed from a friend, you want to pay it back as quickly as you can. Unfortunately this is usually easier said than done, and for many people debt is a burden that they need to carry around at all times. We know this isn't a good feeling, and so we would like to offer you some quick advice on how you get yourself free from debt.
First, for those of you will several different debts, you want to get a handle on these. Make sure you know everything there is to know about your debts. Know what you owe, when the payments are due each month, and how much you need to pay back on that date. Also figure out if you keep making the minimum payment each month, how long it will take you to repay the loan in full. There are many calculators online that will help you to figure this out. Once you have all of your information, you can start putting a plan together to pay it all back. List your debts in order from the ones with the highest interest down to the lowest. Since these are the ones that are going to cost you the most if you take too long to pay them back, you want to work on them first.
Now that you know which loans to make a priority, it is time to start making those payments. Put everything you can afford into paying off those loans at the top of the list. Make only the minimum payments for the ones at the bottom, and divert everything else to the loans at the top. This will pay off for you in the long run. Go through your monthly budget and look for areas that you can cut back on. Instead of spending money on your morning coffee, make your coffee at home and put the extra money towards your loans. It may not seem like a lot, but it will add up over time and save you money in the end.
If you have several loans out, look into getting a consolidation loan. This loan will combine some of your smaller loans into one, making it easier to manage and pay back. If you can get a good interest rate on a consolidation loan, it may make things a lot easier and more affordable for you. This principle can also be applied to credit cards. If you have a credit card with a low interest rate, use it to pay off debts with a higher interest rate and save yourself some money. Just be sure to check the interest rates, as some credit cards have higher rates when transferring a balance from another card.
Lastly, try talking to your loan provider about what your options are. If you are having trouble paying back your debt, often they will work with you to find a solution. This could be lowering the minimum payment, or adjusting the interest rate. You won't know until you ask, so give them a call if you are struggling with your payments.
Hopefully these few tips will help most of you get a hold on your debt. Each person's case is different however, so you may need more specialized advice. If this is the case, we suggest you consult with a professional who can give you advice catered to your situation. No matter what you do, it is important that you start taking steps towards reducing your debt now, rather than waiting for it to pile up. Good luck!