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These 6 Practical Solutions Could Help You Pay off Debt Sooner

These 6 Practical Solutions Could Help You Pay off Debt Sooner

Debt can put a lot of stress on the finances of any household. The financial condition can spin out of control because of any unforeseeable circumstances. Tragic events can lead to you getting in debt. Getting loans can help in getting out of worse circumstances and assist you in getting on your feet, but you have to return the loan as well. When the money is tight, it can be difficult to find money to pay off the debt. There is no need to panic because there are efficient ways of paying off your debt.

You can also take help from debt arrangement scheme to get out of the difficult situation. It is important that you are careful when trying to pay off the debt because several companies can take advantage of your situation and make things worse. Paying off the debt is hard work, and it is important to stay focused. Some strategies can help in paying off the money quickly. Here are some of the useful strategies.

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1. Paying More than the Minimum Payment

If you have credit card debt, student loans or personal loans to pay then it is better to get rid of them as soon as you can. And you can pay them off by making more than the minimum monthly payment. It will assist in saving on the interest throughout the loan. It will save you a lot of headaches if you make sure that loan is not charging any prepayment penalties before you even get started.

2. Trying The Debt Snowball Method

If you can pay more than the minimum payment on our debts, then you can use the debt snowball method. It will help in speeding up the process. The first step is to make a list of all the debts that you have to pay. Include all the debts no matter how small they are. The next step is to throw all of your excess balance at the lowest balance and also make minimum payments on the bigger loans. Once you have paid the smallest debts you can start putting the extra money to the next small loan. Try to pay one small debt at a time. The snowball method is very effective in paying down smaller balances first.

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3. Selecting a Side Hustle

Using the snowball method is effective, but you speed up the process even further by boosting your earnings. If you earn more money, you can make a better effort of reducing your debts. You should look for a talent that you can monetize. It can be any activity like babysitting, tutoring. Mowing yards etc. there are some websites which can help you in freelancing and earn some extra money. The important thing is that you do not get carried away by the extra money and use it to pay the debt.

4. Creating a Tight Budget

If you want to get rid of your debt faster, you need to be very careful about planning your budget. Try to cut your expenses as much as you can. You can use the bare bones budget strategy. It will help in keeping the costs as low as possible. The bare bone budget can look different for different people, but it does not include any additional cost like dining out, going on trips, etc. These budgets are just a temporary solution, and once your financial condition becomes better, you can add some extra spending in your monthly plan.

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5. Selling Excess Commodities

If you want to get some extra cash quickly, then you can sell the things that you do not need. If you have any stuff that is just lying around in your house and you can live without it, then you should sell it. There is always some useless stuff that is gathering dust in your home and you selling them will help in making proper use of these things. There are often garage sales which provide you the opportunity to sell them and get some quick cash.

6. Asking for Lower Interest Rates on the Credit Cards

If the interest rates of credit cards are too high, you will find it impossible to pay off the debts. You should try to call the card issuer and negotiate for lower interest rates. It is common to negotiate for lower interest rates, and if you have a good history of paying bills, then you have a good chance of getting lower rates.

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

More About Thinking Smart

Featured photo credit: Austin Distel via unsplash.com

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