Getting into debt might be the biggest challenge of time. When you have debts, you don’t just lose money while paying the interests, you also lose your privilege to invest because you keep on using the money you have to pay the principal and the fees attached to it. Imagine paying 5 or more different lenders monthly with your minimum salary. The chances are, you will borrow again just to pay your existing loans. So, is there any way to get out of it? Yes, there is! In this article, I am going to show you 5 simple ways on how you can live debt-free.
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Stock Smarts Cebu — April 6 & 7, 2019
Investing Insights Japan – April 13, 2019
Stock Smarts Singapore — May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Manila — June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
Before you can recover from your debts, you have to simplify your lifestyle. Forget about your expensive frappe, coffee, shoes, bags, and other things you can kept on spending on. Go back to the bare essentials. Remember, you don’t need too expensive stuff to live and rock your life. You can always find cheaper things that have the same quality you prefer.
The secret to paying your debts faster? Find more sources of income. If you are buried in 5 or more kinds of debts and your only source of cash is your salary, it would take you years to pay for them if you don’t look for other income channels. If you’re a full time employee, you can look for passive or active income like online selling, freelancing, and investing.
List down all the things that you own and filter those you need and you don’t need. Sell what you don’t need so you can get extra cash you can use to pay the portion of your debts. It’s a simple act to help you declutter your stuff while earning from the selling them.
Having credit cards is not bad. It’s fine to own some as long as you are paying the full instead of minimum. If you keep on paying the minimum, you will have the pay for interests until you fully paid your debts. If you do this, your loan will keep on compounding. The best way to get out of debt is to cut your credit cards. This is how you can avoid the temptation of using it.
Pay for the loan with the highest interest first. If you think you can’t pay your debts all at once, aim to retain those with low interest rates. This is a strategy of minimizing the payments you are making while slowly finishing off your other debts.