For some, the word duty sounds like a curse. In all fairness, having little debt is better than no credit at all. The key to success lies in the right balance of spending and profit.
If your expenses are higher than your income, it's easy to get into debt, which will lead to stress and ruin. But there are several methods to reduce the amount of debt without making payments.
First, we will discuss several ways how you can reduce debt when there is no extra money to pay. And don't forget to read about the 20 best places to hide your money.
1. Work on your credit score
Having a good credit score can help you pay less tax and qualify for other types of support, which will help you avoid overpayments while paying off your debt.
You should start with a detailed study of everything related to the credit dossier, make sure that the information is accurate. By dispensing with the minimum payments, you will ensure a positive balance, and at the same time you will have free cash on hand to pay off the principal amount of the debt.
2. Get lower interest rates
The most important factor in repaying a loan with a fixed time frame is what percentage you pay. Even if interest rates have risen after the end of the advertising period or because of several payments later than the deadline, you can call the credit company and discuss the possibility of lowering the interest. There is nothing shameful in this, the worst thing that can happen is that you will be answered “no”.
Freeing up money in the budget
3. Cut your monthly bills
If you do not have money now and there is no way to increase your profits, you should work on reducing your regular bills. Cancel unnecessary subscriptions and automatic payouts, close your gym membership you don't use, install energy-efficient lighting. Make an effort to cut costs where possible.
4. Working with companies to restructure loans
There are times when it is best to go to a specialist. By contacting a reliable agency, employees will be able to negotiate a reduction in the total amount owed, lower the interest rate, and stop calls from collectors. Such institutions specialize in conducting dialogues with credit companies and will be able to organize business better than you yourself.
5. List your credit card debt
Want to save more money to pay off your debt Check if you can get a credit card with 0% and transfer your debt to it. If not, then a consumer loan or even a credit card with a lower interest rate will save you tons of money in interest in the long run. Just take it responsibly and do not increase the size of the loan.
6. Reconcile invoices
If you want to reduce your total debt, sometimes all you have to do is ask. You can reduce the amount of bills you have to pay, especially if they were issued years earlier and are still outstanding. Call your credit or debt collection company and ask for a one-time settlement. Totals are often discussed.
7. Try to reduce your mobile phone bills
What is the easiest monthly bill Mobile phone bill. Many people pay for it without hesitation. Instead, you can change a large cellular operator to an alternative provider, not so big. Cellular bills can be halved or more.
8. Talk to a debt counselor
Learning all the information on debt reduction is no small feat. Instead of trying to fix the problem yourself, make an appointment with a debt counselor. It will help you get things done, whatever the circumstances. You shouldn't follow someone else's example from the Internet. You will have a plan based on your unique situation.
9. Create a debt reduction plan
It is impossible to get rid of debt if you do not know what funds you have. Before you start solving a problem, sit down and count how much and to whom you owe. Even if you cannot pay immediately, you will know where you are. This is the first step to paying off your debt.
10. Get motivated
Struggling to achieve financial independence to retire? Do you want to go on a long-awaited vacation? Do you dream not to think about money? It doesn't matter what motivates you, but take it seriously if it ever works.
Whether you're using a financial calculator to figure out when the long-awaited debt-free day is (assuming you stick to the plan) or rewarding yourself along the way, staying motivated is the only surefire way to achieve your goal. Do not miss the opportunity to earn extra money on the side.
11. Find additional income
Living "paycheck to paycheck" it is impossible to carve out the funds to pay off the debt. What to do? Learn to make more money.
Consider how you can provide additional income. If you bake well, sell your treats at the local market. Can you teach? Take up tutoring. Do you love children? Suggest that the neighbors hire you to babysit the children. There are many options for obtaining additional funds and every ruble will be good for you.
The most common mistake
12. Stop increasing debt
It sounds like crazy, but the most reliable way to get rid of debt is to stop increasing it. Before tackling your debt, cut open all your credit cards and vow not to use them. The sooner you start living on the money you have, the better. Luxury items are not for you at the moment
13. Cut costs
Study your bank account in detail and find out where the money is going. Then decide what costs can be avoided. For example, making coffee at home instead of buying it on the road can save you a few hundred rubles a week, which is best left to pay off your loan. But remember to relax.
14. Don't harass yourself.
The most important thing to remember is that you should not be ashamed of your duty. With the right plan and the right tools, everyone can pay off debt and live a carefree and stable life. Give yourself time and in the end you will emerge victorious.
Based on materials: https://zebra.credit/
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Why are there debts? And how can you shorten them? And how, if possible, do not get into them anymore? Answers to these questions will be given by this video.
