We want to get rid of credit bondage as quickly as possible. Especially if payments on a cash loan, credit card, or mortgage eat up a significant portion of the budget. Fortunately, there are effective ways to pay off the loan ahead of time much faster.
- Plan your repayment
First, you need a plan. It is necessary to see the enemy, so to speak, in all its glory. To do this, you need to take a piece of paper, a pen and write down all your debts and obligations. What information is required to specify:
The name of the Bank;
The outstanding balance;
Loan duration (how much time is left to pay);
The payment type is annuity (equal payments) or differentiated (the amount of debt is gradually reduced, which is typical for credit cards).
This record will allow you to clearly see the size of your debts and understand the order in which they need to be repaid. For example, if your budget is not enough to service the debt, you first need to pay off those loans that have the largest monthly payment: this way you will reduce your monthly debt load. If the amount of payments per month is comfortable for you, then first you need to repay those loans that have the largest overpayment: this way you will save money.
When you have a step-by-step plan for getting rid of loans, you can move on with more efficiency.
- get your budget in order and start saving
The advice is banal, but it works. Determine how much money you receive per month and where you spend it. Now you don’t even have to calculate your budget manually — just look at the history of your online Bank. If you often pay by card, then all the information about your expenses for several months will appear in front of you.
Try reducing each expense category by at least 10%. It is clear that you will not be able to» squeeze » the rent and mandatory payments, such as paying for school or feeding a child at school. But you can reduce your spending on food, transport, entertainment.
Optimize your expenses by eliminating unnecessary subscriptions, expensive mobile and TV tariffs, spontaneous and unnecessary spending, and so on. Don’t think of shopping as a stress reliever. Yes, going to the store for delicious food is also an option of shopping that you need to give up.
You should strictly adhere to the budget. If you think that you should not spend more than 15 thousand a month on food, then do not spend more. Special apps will help you keep track of your budget. They calculate the spending limit per day — just don’t go over the limit.
- Adhere to the principle of » pay yourself first»
Even if you have an iron will and necessarily schedule your budget for a month, it will not always be possible to meet it by the end of the reporting period. There will be unexpected expenses. Or you might want to treat yourself to something. Or you will have to spend urgently on clothes, gifts, treatment.
To stay within your budget, stick to the simple «pay yourself first» rule. What does it mean? Link budget planning to the day you receive revenue. During planning, you take three compulsory payment:
set aside money for loans (you may even be able to pay them off immediately);
top up your personal Fund-a » pot » or piggy Bank (call it what you want);
transfer money to a separate account to make mandatory payments.
You need to act in this order — first loans, then a personal piggy Bank, and only then-mandatory payments. The rest of the money is your monthly budget. Here it can be disposed of at your discretion.
- Find additional sources of income
You can’t go far on savings alone, and you can’t keep cutting expenses. Therefore, when paying off the loan early, you need to think about increasing additional sources of income.
There are many ways to earn money, here are just a few ideas:
working on freelance exchanges as a copywriter, artist, translator, designer, developer, tester, etc.;
outsourcing services: accounting, filling out documents, tax returns, website support, maintaining groups in social networks, etc.;
consultations on a variety of issues, including online;
help around the house (repairs, finishing, walking animals, child care);
private delivery and delivery