Debt can feel like a suffocating burden. But fear not, fellow financially faithful! With the right strategies, you can not only conquer your current debt, but also develop healthy habits to keep it at bay. We have carefully considered master strategies that when used, can get you out of debts and stay out. Try this!

Face the enemy: Understand your debt

Gather Intel: List all your debts, including outstanding balances, interest rates, and minimum payments. This knowledge gives you an etch to close down on all your debts. If you don’t have proper knowledge about your debt, it becomes difficult to know how to start repayment.

Pick a repayment strategy

Avalanche or Snowball: The avalanche method prioritises debts with the highest interest rates, saving you money in the long run. The snowball method focuses on paying off the smallest debts first, providing a quick win to boost morale. Choose the strategy that best suits your goals and personality. However, if you get a windfall, consider putting it in debt repayment rather than enjoyment as the faster your debts are cleared, the more relaxed you will be.

Whatever repayment strategy you choose, be sure to communicate it with your creditor so they fix you on that repayment mode. You can also automate your repayment to save you time and reduce stress.

Track your spending

Every penny counts. You remember the saying that little drops can make a mighty ocean? That is it! Track your income and expenses to identify areas where you can cut back. Don’t exclude anything on the list. By doing this, you are able to know what you spend more on and what you will need to cut out for your debts sake.

Make a pick— Increase income or reduce expenses?

Anyone you pick helps in your journey to beat your opponent, debt. If you are increasing your income, what do you do? You can consider a side hustle or explore opportunities for a raise at your current job— cross functional collaboration should be a consideration. Efficiency and availability are good qualities for someone who wants to earn more.

So what if you’re reducing expenses? Spend Less and re-evaluate your spending habits. Do you really need that gym membership, or can you find free workout alternatives? Can you buy the hair when your debts are cleared or you just want to own the latest now? Every little bit adds up and can make a significant difference.

Consider debt consolidation or negotiation

Consolidation enables you to combine multiple debts into one loan, ideally with a lower interest rate, simplifying your repayment process and potentially saving you money.

On the other hand, negotiation provides you the opportunity to renegotiate with your creditors and explain your situation to them as sometimes, they may be willing to lower your interest rate or offer a repayment plan. Don’t be shy to consider these two options as they may just be what you need to finally clear your debts.

Additionally, there’s no shame in seeking help. A credit counsellor can provide personalised guidance and support on your debt-busting journey. Credlanche Limited, a vast rising financial firm has thought professionals who can help you overcome your debts and stay out.

Key takeaways

• High debt level can lead to lower credit score, which can make it more difficult to get financial products subsequently.
• Consider paying off your debts starting with the highest interest rates first or paying off your smallest debt first.
• Look for ways to reduce your expenses and put the money you save toward your debt.
• Don’t be ashamed to consult a professional credit counsellor about your options for your situation.

By following these five strategies and maintaining a disciplined approach, you can overcome your debt and achieve financial peace of mind. You are not alone in this fight, fellow comrade! With hard work and dedication, you can become a master of your finances and build a brighter financial future.