You’re probably wanting to find a fast solution to paying off your debt. The truth is, there is no easy way. I even searched online with the keywords ‘How To Pay Off Debt Fast’ but when I read the articles, it will still take many months or years before you can actually pay it off.
So I’m not going to show you how to pay your debt quickly, but I’m going to show you a realistic approach to paying off your debt.
Make a Debt List
This is the most basic of all. In every problem, the only way you can start planning is when you list down the details of your concerns. Record all your debt in one list.
Below is a sample Debt List:
This table will give you an overview of all your debt, its due dates, the total amount you owe, and the interest rates for each debt.
Why is this important? Because the only way to solve a problem is to solve it one-problem-at-a-time, and the only way to solve it one-at-a-time is to see the details.
Knowing the details will allow you to prioritize which debt to pay first and which debt to consolidate, etc.
I teach this in details in my Personal Financial Management Workshop.
Now that you know the details of your debt, you have to prioritize which one you should pay first.
Contrary to what you may think, my advice is for you to pay off the small ones first. The idea is here is to have small victories at-a-time. The more victories you have, even how small it is, the more motivation you will have to look forward to paying off all your debt.
Your next priority are the ones that has high interest. The reason for this is obvious – it’s building up your debt until you drown with it.
In our Personal Financial Management Workshop, we coach you as you do this.
Find Other Funds
Make a budget and see where you can get more funds. Actually this should go first, but whatever, what’s important is that you check which of your expenses can you cut off or lessen so you will have more funds to pay your debt.
Check if you have anything you can sell. These things you have are just material things, they are not that important. Look around your house and check which ones you can give up and sell.
Another strategy is to borrow money from people who still trust you. Here is an article that I wrote about How To Pay Multiple Debt where I talk about this with more details.
I hope this article has helped you.
If you need a more detailed strategy, enroll in our Personal Financial Management Workshop and get financial coaching.
You can enroll to one of our Personal Financial Management In-depth Sessions (venue is in Pasig City) or invite our team to your company for a Personal Financial Management Seminar and Workshop (1 Day session) by sending us an email at firstname.lastname@example.org or call us at 0927-8931175.