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.
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,
Srikanth Matrubai
https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/
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