Many ways you can do to way to paying debt down until they are finished. However, not all of these methods make your debt settled in a short time. Actually, there are several ways to quickly pay off debts that are guaranteed to be very easy to do.
As long as the quick way to pay off the debt is done consistently, your installments will inevitably quickly be paid off. Surely you want to be free from debt so as not to overload your mind?
No need to linger anymore, this is how to quickly pay off debt for you who want to avoid debt bondage. Come on, let’s look at together which has been summarized by 101write.com below:
1. Recalculate how much debt repayments you have to pay off
Why count again? Yes, even though you already know how much debt is being borne, you should know exactly how much is allocated for paying monthly installments.
This is important so that you can measure how well you are able to pay debts. Ideally, the allocation of expenses to pay debt is a maximum of 30 percent of monthly salary. More than that is a sign that your finances are not healthy.
Thankfully, the monthly installments are less than 30 percent. That means you are still able to pay the installments to completion. Another story if more than 30 percent. Do not rule out the possibility you will potentially fail to pay your debts.
Now, after knowing the amount of debt repayments that you must pay, follow the quick way to pay off the following debt.
2. Prioritize paying high interest debt first
Next is sorting out debt from those with the highest interest rates to those with low interest rates. In calculating the amount of debt installments paid, you can also make a sequence of high-interest debt.
How to quickly pay off debt this one asks you to prioritize debt payments with the highest interest rates. This is called the debt stacking method.
The debt stacking method is a way to pay off debt by prioritizing debt payments with the highest interest rates. Why is high-interest debt paid first? Because high interest is the main cause of the swelling of debt that creates non-performing loans.
While low-interest debt, the buildup in the short term can still be anticipated. At this point it’s clear why should I use the debt stacking method?
3. Reduce debt interest expense
Can debt interest be reduced? Debt interest can be reduced anyway. Unfortunately, this only applies to some debts. As you know, debt varies from credit card debt, credit without collateral, to public housing loans.
For those of you who have credit card debt, use a credit card balance transfer to be a reliable way. Credit card balance transfer is the transfer of one bank credit card bill to another bank’s credit card. By using this quick way to pay off debt, credit card users who initially paid bills with interest on old bank credit cards can pay bills with light interest from new bank credit cards.
Another case if you have a debt from a loan without collateral or public housing loans. You can get interest relief by rescheduling, reconditioning, and restructuring.
Rescheduling is intended to change the repayment period or tenor from two years to five years. Long tenures can make installments become lighter. If the reconditioning is intended to change the amount of interest adjusted to the debtor’s condition. While restructuring includes everything from rescheduling to reconditioning.
4. Change the expense budget scheme
So that debt quickly resolved, you also have to do a quick way to pay off debt on this one. Changing the spending budget scheme can encourage rapid repayment of debt. For example, you have been using 50/30/20 budgeting rules in allocating expenses. If it were changed to 40/50/10, the debt would be paid off.
How come it doesn’t pay off? 50 percent of your salary is allocated for bill payments. While 40 percent for meeting basic needs and 10 percent for saving or investing.
Come to think of it, this means you have to downsize and stop while spending is not too important. However, after all in debt repayment, there are consequences that are borne by this savings.
5. Look for extra income or sell a few assets to paying debt down
How to quickly pay off debt is also reliable. Looking for extra income does not make you have to sacrifice some expenses that you usually meet regularly. However, the consequence is you have to sacrifice time such as weekends.
Well, if you don’t take the option to look for additional income, you can sell the assets you have to pay off debt. Unfortunately, this option also requires a great willingness from you. The thing is you have to sacrifice the assets that you’ve collected so far.
That was a few ways to quickly paying debt down. The methods above can just be useless if you are not serious about doing it. For example, only done at the beginning, but the longer is not continued anymore. The point is how strong your intention is to pay off debt.