DON'T RETIRE RICH

Monday 25 March 2024

CRUSH YOUR DEBT WITH OUR EFFECTIVE TIPS

 

A person in debt is always in fear and full of tension. Dealing with debt can seem overwhelming.

FEAR NOT!!

We are here to guide you on the right approach and give you PRACTICAL steps to conquer debt and achieve Financial Independence.

 

 

Step 1: UNDERSTAND YOUR SITUATION

The 1st and most important step is to UNDERSTAND WHERE YOU STAND.

Before you take control of your debt, you need to do a bit of planning.

Firstly, gather all your loan statements be it Credit Cards, Home loans, etc.

One by one check each of these loans with a particular focus on

How much Interest is being charged,

How much Minimum monthly you must pay,

How much total amount you need to pay back.

This will give you a clear picture of your debt situation, which will be your roadmap to kill your Debt.

 

 

 

Step 2: Understand Interest Rates

Interest rates can be confusing, but we'll simplify it for you.

Fixed rates stay the same as a SOLID ROCK, while variable/floating rates can change like a moving CLOUD. So you need to know whether your interest rates are FIXED or FLOATING to help you manage your debt.

If it is a fixed rate, you will have a PREDICTABLE outgo every month but in a FLOATING rate, the outgo depends on interest rates going up or down confusing you with how to manage cash flows

  

Step 3: Choose Your Repayment Strategy

There are two main approaches:

 

Avalanche Method: Start by paying off the debt with the highest interest rate. It’s like removing the HEAVIEST BOX first. This will be a bit slow progress, but BIG outgo reduces faster and helps you breathe better.

 

Snowball Method: Begin with the smallest debt to gain momentum. Quick wins can keep you motivated. But since BIG outgo continues. the pain will be longer and ultimately cost more.

 

 

Step 4: CUSTOMISE YOUR PLAN

Everyone's debt is different, and everyone's strategy should also be different as each one will have to face different challenges.  Do what works for you. don’t blindly copy others' formula/strategy.

 

Do you want to save the most money in the long run? Focus on the biggest, meanest debt monster first (Avalanche).

Do you need a quick win to stay motivated? Start by defeating the smaller debt monsters (Snowball).

There's no right or wrong answer!  Pick the strategy that will make you want to keep battling until you win the debt-free game!

 

Step 5: Step on the Accelerator and Become Debt Free quicker

 

Ready to speed things up? Here are some tips:

 

Boost your earnings: Think about ways to make more money, like taking on extra jobs or asking for a raise. It's like finding hidden treasure chests that can help you crush your debt faster.

  

https://srikavimoney.blogspot.com/2022/04/easy-simple-methods-to-increase-your.html

 

Trim your spending: Take a close look at where your money is going and cut out any unnecessary expenses. Every coin you save can be used to slay your debt dragon.

 

Pay more than the minimum: Don't just poke your debt monster with a stick—give it a big whack! Paying more than the minimum each month can help you knock out your debt quicker and save you a ton of money in interest.

 

 

FINALLY,

Friends, with strong determination, the right plan, right strategies, you can come out of the Debt Burden quicker than you think and take control of your finances and life.

So, gear up. use the simple effective steps given by us, crush that debt monster, and don’t forget to give us a treat.

All the very best.

 

REMEMBER,

One of the easiest ways to avoid getting into a debt trap is by

 

a) Having an Emergency Fund

 

b) Having a pre-planned expenses list and sticking to it

 

c) Pay all your bills ON TIME

 

 Regards & wishing Super Financial Success

Srikanth Matrubai

Author: Don’t Retire Rich

 

 

 all the best,

Regards,
Srikanth Matrubai
MUTUAL FUND DISTRIBUTOR
REBALANCE VOLATILITY CERTIFIED COACH
Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH


You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 
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