What You Must Do To Pay Off Debt The Right Way
When you decide to pay off debt, you may be met with feelings of relief and dread at the potentially long-winded process. But with proper guidance, you'll be able to repay relatively easily, ensuring you get your life back on track as rapidly as reality will allow.
In the next sections, we will discuss five steps to repaying debt before showing you how to get money quickly while you are focusing on becoming debt-free.
How To Pay Off Debt The Right Way
1. Make A Budget
Creating a budget is the first step anybody looking to get out of debt should take. Why? Because it lets you monitor your income and expenses accurately to see how much wiggle room you can afford.
Start by calculating your income. If you work on a freelance or contractual basis, calculate your average income over the last three or six months.
Then, write down all your outgoing income, ensuring you label each figure, so you know precisely where your money goes.
Take your total outgoing away from your income and consider the amount left over.
Is it enough to pay off debt? If so, you can allocate the amount you want to contribute every month. If not, you should think about eliminating some unnecessary outgoing income like Netflix or magazine subscriptions.
2. Pay More Than The Minimum
Paying more than the minimum required can make a real impact on your debt —if it's a viable option for you.
The faster you pay off your debt, the less interest you'll be expected to pay, saving you money long-term.
3. Prioritize Repaying Debt Over Saving
It's always helpful to have a financial emergency buffer. But think about it logically — there's no point in having a hefty savings account if you also owe money on an overdraft or credit card.
Using the money accumulated in your savings pot could save you hundreds of dollars in interest over the years.
4. Separate Savings And Debt Paying
If you're saving money with the same provider as you have debt, they withhold the right to use the money in your savings account to pay your debt.
While unlikely, it's known to happen, so consider separating your accounts to avoid this situation.
5. Pay The Most Expensive One First
Repaying the loan with the highest interest rate first can reduce the overall interest and, thus, debt. After that, choose the next highest interest rate and so forth until you're debt-free!
This is often called the avalanche method of paying debt.
Struggling to Make Ends Meet This Month? A Car Title Loan Is An Option
Here at At Home Title Loans, we connect wannabe borrowers like you with a direct title loan lender, allowing you to get a quick influx of cash while you pay off debt.
The lenders we work with can offer up to $15,000, depending on the value of your car, truck, or van. Just note that they don't accept motorcycles, RVs, quad bikes, trailers, tractors, or other types of automobiles.
To get a car title loan, follow the simple steps below:
- Start by using our online form. It's secured and sends your information directly to us so we can pair you with the perfect direct car title loan lender.
- At that time, a knowledgeable agent from the lender we connect you with will give you a call to discuss your request, walk you through the process, and ensure you have everything you need for approval. They'll also ask you to choose a meeting point — think home or office, or whatever is most convenient for you.
- The loan agent will then meet you to deliver your loan packet, quickly verify the VIN, and assess the value of your vehicle to determine how much they can offer you.
- As long as you're satisfied with the amount, they'll ask you to sign a few forms before emailing the documents.
- simply provide an e-signature on the emailed documents to agree to the terms.
- Once the lender receives your signed paperwork, they will transfer the money into your bank account on the same or the next business day.
The Final Word On Debt
Pay off debt the right way by:
- making a budget;
- paying more than the stated minimum;
- prioritizing debt over saving;
- separating savings from debt payments;
- paying the most expensive debt first; and
- avoid the headache of repaying debt again.
Following these tips and tricks ensures you find your financial footing in no time at all.
However, if you hit a stumbling block and need to make ends meet for one month, remember you can turn to a car title loan from one of our direct lenders.
Get started by submitting our quick form, and we'll connect you with your perfect lender in a matter of moments.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
