That mountain of debt staring you right in the face is extremely tough to pay off. And, it may seem like a mountain you are not going to be able to climb or conquer. With this in mind, you also have to understand that a mountain of debt, no matter how high or steep it may appear from the ground up, is doable; yes, even by you, and even if you don’t think you are going to find a way to hike up it. So, how are you going to conquer it? You are going to need the right tools in hand in order to tackle it and make it to the top.
You are going to need the right tools, which include learning how to apply your money management skills in order to save, properly allocate funds, and to know when and how much you are going to pay, be responsible and stomp towards the many debts you owe. So, you need to prepare with the right training, and learn how to spend your money, if you wish to see the mountain get smaller as you begin to climb up it.
Cash Flow – Beginning of your journey
This is the very beginning of your journey. Step one is for you to take a look at cash flow, so you are fully aware of just how much is coming in, and how much is going out at the present moment. Looking at prior bank statements is a good way to track your spending. You can see how much is coming in, where you are spending money, where you can cut back, what you can do so you can save, and so forth. When you can track and know where funds are going (and coming from), you can start to make a plan in order to change your poor spending habits.
If you have expenses which are not necessary, you have to find a way to reduce them, if not eliminate them altogether. You are going to go through all expenses, so you can start to see where to cut back, and the type of debt you can begin to eliminate, which you really should not be spending on a monthly basis. Gym membership, magazine subscriptions, that morning coffee you can make at home (rather than go to a coffee shop), and other unnecessary bills truly have to be looked at. From there, you can start to see what you really need, where you are spending (and should not be), and how you can cut back on those expenses. All of this is going to be a benefit to you in the long run, and it is going to teach you how to differentiate the needs in your life, versus those expenses you are just going through, and burning money, where you really do not have to.
That $40 gym membership is not being used daily. So, why not go biking, or go to a local park to do your jogging instead? It is free, and you are going to get the workout in, without having to pay for it. How about the magazines you only read once then push aside? Why not get rid of that subscription, and make that additional payment to a debt you are trying to pay down and get rid of overtime instead? You can do this with all of the expenditures you have each month. And, from there, you will begin to see a majority of them, or a great deal of them, are truly not necessary, and that you can cut back by simply eliminating a few of those expenses you are mindlessly paying for on a month to month basis.
In 2015, there were more than 101,000 delinquent debts alone; so, Singaporeans are falling for credit card debt in high numbers. You need to look at yourself and find a way in which you can get rid of those debts, and learn how to reallocate your finances, in an attempt to begin paying off your debts and getting out of the unnecessary debts you are facing. This is in addition to the whopping $1.55 million in debts we are facing last year alone!
We need to begin collating all credit card debts, in an attempt to get rid of these debts. You should begin by noting all credit card debt you have, and the interest rates you are paying for each of these cards. From there, write down those debts based upon which ones have the highest interest rate next to them. And, you are going to want to begin paying the highest amount each month, to the credit cards which are carrying the highest interest rate, and the highest balance by them. Doing this will help you stomp off more of the principle as opposed to simply paying on the absurd interest rates which so many credit card companies are charging you for the use of their cards.
Using your cash flow budget, you can allocate a realistic budget to pay off these credit cards in a timely fashion. Once you pay them down, you can begin to re-establish yourself and to begin to regain financial stability. In times when you are struggling to pay off your debts, you can always seek for a temporary alternative such as getting an instant personal loan and this is hassle-free as you just need to apply online on a licensed money lender‘s web page and the staff will get back to you right away to solve your problem. Otherwise, or if you need some encouragement, a good way to find it is to speak to people who are close to you and inform them of the progress you are making. Who knows they might even offer some advice that is going to help you pay off the debt even faster than you are currently paying it down. You may wish to read on some tips to beat on monetary stress.
Pen Down Your Dream
Draw an accomplishment board, so you can visualise what you have done, and where you want to go with your financial dreams as you pay off, and get out of debt going forward in your life. Visualising what you want, and actually seeing it come to fruition, is going to help you keep going, and help you in reaching the goals you are setting so you can become debt free. The road ahead seems tough; but, if you hang in there, and are willing to work it through, you are ultimately going to see the debts dwindle, stomp your debts to death and regain your financial stability moving forward.
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