Five Tips on How You Can Manage Your Debts

By Jamie Hill - 18 February 2019

BusinessExpert VoicesCommunity

There is nothing terrible than being in huge debts. You seem not to progress despite your hard work. Nevertheless, we usually find ourselves owing to other people and institutions money. The problem comes when it's time to pay back. If you see that you owe more than three people, then it's about time you take control of your debts and live a stress-free life.

Here are the tips that can help you manage your credit;

  1. List down all your debts

To maintain your loan, you must first know the total amount that you owe different lenders. One way you can do it, is by writing down all your debts. Sort them with the amount of interest each has, and their due dates to figure out which one you should pay first. Always start paying the loan that has significant interest rate such as credit cards.

Alternatively, pay the least amount debt first and do away with it.

  1. Avoid more debts at all cost.

Pay your bills on time to avoid getting into more debts. Delays in measures payments will get you to penalties. Keep your credits card away and don't spend more than what you earn. Any extra income that you have after paying your bills to add it to your repayment funds.

  1. Check whether you’re entitled to a payday loan refund

Do you know you can get your payday loan refund if you had recently paid or in the process of repaying your payday loan? Right. If your payday company lender didn’t care about your financial stability before lending you money, they might be the ones who owe you and not vice versa. If you couldn’t afford the loan and you’re struggling to repay it, you can claim for a refund of the interests and other charges made on top of the credit. See How to make a payday loan refund for more details.

  1. Reduce your spending

Minimize your spending to get more money to repay your debts. Having a budget is one way that can help you keep your spending on track, avoid luxury lifestyle at least until you make progress in paying off your loan. If there is nothing to cut off on your spending list, consider getting a part-time income to help you pay off your debts.

  1. Borrow from your friends or family

As mentioned earlier, you should try your best not to get into more debts. However, if the loan amount is overwhelming and keeps on increasing due to late delays; consider borrowing from friends or relatives who can lend you without interest to first settle other loans. Promise to pay them as soon as your finances get back to normal and please do not take advantage of their kindness.

‘’Desperate times call for desperate measures’’ Well, if you have tried your best to clear up your debts without success, sell some of the stuff that you're not using and raise money to repay your loan. When you’re out of debts, start saving for emergencies not to find yourself in the same situation again.

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