Are you being hold back in life because of your loan and want to learn how to pay your debt faster? This article will give you some tips on how to first take control of your finances and secondly how to pay off your debt faster.
Figure out how much debt you really have.
Figure out how much debt you really have by taking a good look at your finances. Do you have a mortgage, credit card debt or maybe both? Maybe you have different kinds of credit card debts? Let all your debt add up so you can see the big picture. How much in total debt do you have? Figuring out how much you really have is important so you can start to plan your way out.
Figure out WHY you want to pay off your debt.
Ask yourself the question; “why do I really want to pay off my debt?”. Your answer may be because debt is bad. But challenge yourself to dig a little bit deeper and ask yourself; “why is debt bad?" When you ask yourself “why?” a few times, you will eventually come down to the emotional answer. Do you believe debt to be bad because you feel trapped or like a slave to your money? Or do you feel that your freedom is taken from you because you can’t do the things you really want to do, like traveling the world? Figure out your WHY and remind yourself of it when you start to doubt yourself, want to quit or feel discourage about your finances.
Set up a goal.
Once you know how much debt you really have and why you want to pay it off, it’s time to plan and set a SMART goal. Which loan are you going to pay off first? How much money are you realistically going to pay each month to pay it off? Once you know that, set up a goal so you know where you are going and to track your progress.
Find tips, inspiration and motivation.
When you have a clear goal you are working towards, it's always helpful to have support or someone who can inspire and motivate you. Read a few books on personal finances like The Total Money Makeover, Your Money Or Your Life, I Will Teach You How To Be Rich and learn from those. There’s also some great blogs you can read for free like Man vs. Debt and Get Rich Slowly.
Sell your crap.
Get rid of the things that you don’t need or use anymore. The money you bring in from these sales can be put to pay off your loans. This is a fantastic way to pay off your debt much faster than you normally would, and you will start to realise that you don’t really need all the things you once had.
Increase your income and lower your expenses.
This is probably the two most obvious things you can do to get some extra money you can use to pay off your loans faster. So how can you increase your income? Can you can find a second job, work there for a while and take everything you earn there to pay off your debt?
What kind of expenses do you currently have? Track your expenses for 10 days and you will see what you spend money on. Can you skip that daily Starbuck-coffee, cut your cable or cancel that subscription? Use all the “extra” money you get from cutting these expenses to paying off your loans faster.
Please share this article with your friends on Facebook and Twitter if you think it can help them in some way. Also feel free to leave a comment below. Thanks!