“What shall I pay first – my already accumulated overdrafts or my student loan?, Oh! Wish I could get extra bonus this month from my boss!!”. Well I know how many times you have cringed at the very idea of compromising your insatiable materialistic desires while going on a spending spree. It pinches you especially when you are loaded down with debts. Debts are sinister, the slower you pay, the more it will suck every worth penny of yours!! There’s only one trick : the moment you owe someone you prepare the means to give them back. Adding to this it will be easier if you pay before you start counting your grey hairs.
Here are few of the tips every young man should know to pay off their debt in the shortest and fastest time:
1. The Planner
Be a planner always. Keep checking on your income and expenditure power. In fact have a bookkeeping record of your every monetary activity. Next time when you open it for new entries , you will at least know that you are low in income and higher on expenditure. This will ensure you to keep the savings. Savings are always a boon to anyone. They are life savers. So planning properly about your monetary affliction will make it easier to spend and pay off your debts sooner.
2. Throw away your credit cards
Stop living on credit, expecting to pay it really in the future. When I was in the freshman year of my college, I got into this bad habit of spending. My father being a true businessman, however rich he was, he valued money. So when I crossed the limit of my ‘credit luxuries’, he has to deliberately block my card. It didn’t take me time to realise what a blunder mistake it was. Living on credit may give you a temporary satisfaction but long term it will make the situation worse.
3. Stash as many cash as you can
Not that you need to steal. In spite of being a full-time on job, seek for part-time also. Boosting your income in any possible way is welcomed. In the U.S. one is never a dearth of jobs. Be it employed in big restaurant chains like McDonald’s or on university grounds service for scholars like professions in bookstores, buffets, university offices and other site sections. If you are a pro at ice-hockey, then be a coach or if you are pro at racing, join the race team wagon or else you can . The sources are limitless, you just need to know the means to add up your bank account.
4. Selling your stuffs
Auction your no-more-used stuffs on eBay and bang you are a seller!! Probably the easiest and quickest way to get some traction on your debt is to start selling things you don’t use. If you are high on debts, you have to keep your emotional track aside and try selling your children’s childhood stuffs, your wedding dress and even your old Ford truck stacked in your garage. Selling all these major stuffs will make you pay at least 10% off your debt.
5. Spend according to your pocket size
As the saying goes think before you act. So the same goes with think before you spend. People spend too much exceeding to their purchase limit. Every time you go out, know your purchasing power. Knowing this will really tone down your expenditure list making you to save more money to pay off your debt easily. In general, stop buying things you cannot afford.
6. Live ‘less’ luxuriously
Do not care if you are friends who have just started their career like you, has already started to spend lavishly. Probably, they are spending on credit, making their debts increased up. Every time you think to buy a new iPad or a new car, rethink about your debt ledger and start saving money instead of saving for a new gadget. A mere decent 150$ in an insurance or in a recurring deposit or compound deposit will help you to return lump sum money than you have deposited. So try to keep your money for paying off the debts rather than buying a car on loan only to add up another debt.
It’s never easy to pay off your debts but if you are ever willing to live a debt-free life with no burden on you, you probably start paying down one debt and then another debt till it zeroes down to zero. In the meanwhile, enjoy your life like going for a wild experimenting cooking or going for snorkelling. You can make life anything as you wish.