10 years ago, I was totally broke! My credit score was on the low and I almost went homeless. Well, I had made some bad choices along the way and my debts were on the roof. From payday loans, mortgage, to car loan, I was on the verge of losing everything to debts collectors. Thanks to a change of mind I walked out of it. How did I do it?
Many people today are going through the same in silence. Without help, you could easily end up depressed and possibly suicidal. In this post, I will show you a few tricks that can help you to walk out of debts and start your path to financial investment.
Try Spending Within Your Means
Don’t be a spend thrift. Always have a plan on how to spend. You can always shelve that family vacation to a time when you have saved enough for it. Have a budget and pay yourself after you have saved. This will save you from incurring unnecessary expenses and in turn, leave you with a few dollars for yourself and a possible plan for a great passive income investment.
Pay More for Your Credit Cards
Paying more than the minimum for your personal credit card payments is very important. When you do so it will help you to settle your debt faster; this makes it easy to prevent higher interests rates which are the main reason why simple debts turn into bad debts. Going with a minimum payment plan on your credit card would easily take you forever if you intended to settle the debt.
Get a Side Hustle/ Get Another Job
If you don’t mind working another shift, a side hustle would be a great pivot point. It could easily help you to earn some extra cash that you could direct to settling the debt. The best way to get a side hustle is to cash in on a hobby, skill, or to freelance. However, you should make sure that every dollar here goes to the loan. The best way is to have a passive income plan. Have a commercial building, buy stocks, or create a business.
Have a Saving Plan in Place Always
Many people will tell you today that there is no need to have a savings account – well that’s a lie. Emergencies are real, you could get sick, have an accident, get a broken knee while skiing, a delayed salary or huge bills than you anticipated. If you saved for such things, you can use the money for these emergencies and avoid payday loans.
Consolidate Your Loans If Possible
The option of consolidating loans will help you to pay off huge loans that might prove to be quite overwhelming. Payday loans, for instance, are good if consolidated as they attract huge interests that compound over time. You can find a consolidation firm that has high experience level to help you determine a plan that works at the best rates.
We are advised to pay off our most expensive loans/ debt first. Focus on the major debts that are charging you highest interests and reduce on it. Then follow it with the next in line. Doing this will easily cut down the debts and allow you to create a passive income from a great investment.