Most people struggle because of too much debt to pay. It is strongly advised to only have one debt at a time. Never acquire multiple debts because it will be hard to pay off. Payment dates should also be strictly followed in order to avoid interest and penalty charges. This will increase the amount you have to pay when you miss the due date.
One must have discipline when paying off a loan. He should learn how to follow rules and dates strictly and save some money at the same time. Here are some tips that can help you plan on how to repay loans and debts:
How to Set Up a Debt Repayment Plan in 6 Easy Steps
Follow these 6 easy steps to set up a debt repayment plan.
- Make a List of Your Debts
First, you need to make a list of all your debts. Your list should include the minimum payment amount, the interest rate, and how much you owe total.
This list should also include all of your debt: from credit cards and personal loans to student loans, even your mortgage. If you owe money to family and friends you should also include it on your list.
- Rank Your Debts
Next, you should rank your debts in the order you want to pay them off. Some experts recommend going from the smallest amount to the largest since this helps get the momentum going.
Others recommend listing the debts from the highest to the lowest interest rate since this will save you the most money. The order you choose is up to you, but the important thing is to stick to the list once you make it. Read more…
You will notice that life will be much better after you have completely finished off paying your debt. If possible, never get another loan or debt if it is not that important. Save money for something you want instead of getting a loan for it. Saving for something will be a challenge and it will make you feel more proud to buy something from your hard earned money.