‘Earn more or Spend less’

Have a plan to pay off your debts?- ‘Earn more or?Spend less’

Do you pay your debts by taking out another loan? Getting out of debt is not easy but it is essential to break the chains of debt bondage.

Sometimes it takes everything you have to meet monthly bills and save for emergencies. But if you only make the minimum payments to your creditors, you risk getting stuck in debt and it could take you several months or even years to get out of the hole. But if you're ready to get out of this debt trap, you definitely need to start making progress in improving your overall financial health.

Try to remember the initial reason that led you to fall into this trap.

Was it really necessary? Was it for a need or for a want/wish? Very often we take credits for things that we could have done without. Life is getting more and more expensive and it is important to learn how to develop good habits for healthy finances. Just make sure you understand why you got into debt in the first place and change your?behaviours?to avoid repeating the same cycle once your balances are paid in full.

Re-examine your budget.

There are two ways to pay off your debt faster:?earn more or spend less. It may not be possible to land a part-time job or side hustle or better yet start a new business, but you can adjust your budget. Start by looking at each item in your spending plan and organize them according to their level of importance. Classify each item as a need or a want, highlighting expenses that can be reduced or eliminated. Make the necessary adjustments to your budget and move these funds to your "debt repayment fund" using this money to pay extra on your monthly debts.

Offer?installment?payments?for your debts.

Do not hesitate to call your creditors to negotiate a?installment payments?of your debts. Contact your creditors to offer?instalment?settlements and, if they agree, get the terms in writing. Make sure you?meet?your commitment within the deadlines agreed together to preserve your image and for greater credibility in the future.

You need to make short-term financial sacrifices to free up funds that can be used to pay off your balances faster.