How To Pay Off Debt



The word debt has been thrilling to me. in one way or the other, we all have what we are indebted to, but in this article, we are going to be focusing on financial debt so let's dig in.

Financial debt is the money that one owes and is require and mandatory to pay back as a result of a loan, or other transaction.

Nobody loves to be constrain or indebt to anyone for any reason, because being in debt limits and regulates your finances, which might not be favorable to you.

A debt is like a yoke or burden that puts you under subjection to the lender until your transaction is over, nobody loves to be in this situation but challenges arise sometimes that put people in it.

As inflation rises and the exchange rate triples, most people are preparing for recession, despite the unemployment rate, and hardship, many are struggling to survive the turbulent times.

If you have a debt to pay, and you are struggling financially to make hands meet due to the current hardship In the economy, you may wonder how to pay off your debt, without being drowned, this might put you in depression or cause you to think more than you should, so saving money during economic stability can be of help typically when you don't have a safe means. And do not let yourself be too comfortable being in debt


The aim of this article is to show you a quick and progressive way to pay off outrageous debt. Note- is not going to be an easy process but with the formula that I will be listing below when it is apply you will get a positive result.


1. Take Note Of Your Debt


1. Take Note Of Your Debt

This is the first step to liberating yourself from debt, Taking Note of all your debt. This can be overwhelming especially when you find out you have more than six (6) debt to pay, but if you do this, it will create a sense of urgency in you, and ginger you to pay off your debt.

If you have taken a loan, and your agreement requires you to pay in installments, calculate the amount of money you owe, and set some amount of income aside for the purpose of paying off your debt. When your debt is the type that accumulates interest, know that the faster you pay off the capital the lower the interest.

If you use a credit card, add the total minimum payment per month, so that you will be able to give a reasonable amount of your income in paying off your debt. 

You can create a spreadsheet on your computer that will direct you on how to pay off debt, the purpose of this spreadsheet is to know how much debt you have, for example.

* The creditor table- that's who you are paying the debt to. The one in charge

* The total amount you owe

* The actual amount you have.

* How much you tend to pay from your income installment

This will help you, and give you the readiness to fasten your payment



2 . Create A Budget Plan 


Pay Off Debt

To know how to pay up your debt is to have a budget plan for your debt payment, and a way of creating a systematic plan for paying off your debt is to have a budget plan for your income. 

A lot of people don't find it necessary to allocate a space in their budget for debt payment, like I said earlier, debt is like a yoke, and not everyone can take the yoke of debt on themselves for so long. Creating a debt payment in your budget plan will put you in check on how to spend your income sensibly.

Creating a budget together with your debt payment will help you monitor all your monthly income with your expenses accurately. 

When you have your debt payment fixed in your income or monthly payment, you won't have to worry much about your debt, because there is an answer for it.

 A debt payment fix in your budget plan can also assist you in identifying all of your lucrative spending, giving you the option to cut back on your expenses so that you can have a remnant for yourself after paying your debt. 

you can still try using a budgeting program, such as MINT, to trace your spending and debt repayments when tracking your expenses.


3. Make A Debt Pay-off Plan.

When you know you need to pay more than your minimum and along the line, you discover the waste in your budget, when something like this pops up all you need do is make a debt pay-off plan, create a plan on how to pay off your debt in a way that it will not hurt you, cause a good plan will put you on a solid track, with result to show forth.

There are two methods use in creating a debt pay-off plan, which includes


This method always starts with the smallest balance whereby you can pay each month by paying only the minimum due on your debt.


This angle starts payment from the highest rate and then moves on to the next highest rate until you complete your debt, bear in mind, that it might take a very long time to achieve it but along the line, you are likely to pay off your debt faster and then save more of your interest.


4. Financial Goal, Pay Off Your Most Expensive Debt First

Pay Off Debt


Having a financial goal keeps you organized and prepared on how to allocate your income. If you do not set up a financial go you will spend your money foolishly and you won't be able to account for it, which might as well put you in debt.

Your financial goal includes how much debt you owe, how you intend to offset this debt, and the time frame set up for yourself to offset the debt. But this will take a drastic effect if you start up by paying off your most expensive debt.

Paying off your most expensive debt, helps you to regulate your financial spending, and develop a sense of self-discipline, and courage, if you can pay your most expensive debt, then you can raise a reasonable amount to do something positive and productive for yourself.


5. Change Your Spending Habit

5. Change Your Spending Habit



There is always a certain level of joy you have while purchasing anything for yourself or someone, especially at the shopping mall, when you've finish shopping you pay your bills with confidence, and pride yourself in fulfillment. Oftentimes you come to realize that most of the things bought were irrelevant, and this realization often takes place at home, But the money has been spent.

Anything that has to do with overspending always ends up accumulating a very large debt, while in some cases it is often a behavioral issue. When you overspend you won't be able to give account, and you might crawl into debt.

Learn to spend some time thinking about how you spend your money each day, each week, and finally every month.

Take some time and ask yourself some questions when you plan to go shopping.

Questions like,

I really need this.

What if I don't need this at the moment?

And have a written list of what you want to purchase, this will help you quit unnecessary spending.

you work in a company instead of buying food daily, and buying lunch daily, five(5) times a week, why not prepare your breakfast and your lunch yourself and take to work? with this habit, you will be able to save up and stop unnecessary spending habits, the same goes for other perishable things. once you know your spending habits, you will be able to track down some areas that need to be cut down.

One thing about this spending habit is if you are not honest with yourself, it will never work, even if you do research or read thousands of books, it will work for you when you are being honest with yourself.



6. Pay More Than Your Minimum Balance

it is very important to pay more than your minimum balance especially when you are financially capable.

When it comes to managing your debt making use of credit cards can be extremely costly, if you try to make a minimum credit card debt payment each month, it can take a very long time to pay off your debt because the majority of your minimum payment will go towards paying that of interest rather than reducing the amount you owe.

So is best you pay more than your minimum, you can only achieve this when you reduce your spending habits as I said earlier in number five (5), and when you have a side hustle which I will be speaking on next.

You can't pay more than your minimum when you are not financially stable and don't have a side hustle, and The more you pay more than your minimum the higher your debt payment reduces.


7. Increase Your Income With a Good Side Hustle

One of the most effective ways to pay off your debt is to have a side hustle, you can't depend fully on your monthly salary, and there are many expenses to take care of, Coupled with your debt payment, you will find out that your monthly salary won't do the job, so is best to have a side hustle.

Side hustle creates a very strong assortment in your stream, especially when you are financially unstable. you can start a side hustle by using your talent, and skill, you can increase your income by being the best in what you do in your working environment.

You can take a part-time job or any volunteering service, and from the money you are paid, you take from it and repay all your debt on your neck.

It is not necessary to start up a side hustle so quickly especially when you are not well-balance in your career, but keep the thought, contemplate on it, and see what works best for you, either a side hustle or you create a niche for yourself.


8. Pay With Cash Rather Than With a Credit Card

Pay Off Debt


It is often known that credit cards carry a high rate of interest and if you keep accumulating them, it may take time for you to pay off your debt, so it is wise to patronize cash than a credit card.

Credit card debt can have a major effect on your financial score, especially when you don't know how to maintain healthy spending with your credit card debt. it all starts with one credit card debt and in the blink second, you begin to wonder how your financial score drop so low, but when you patronize cash more, you will be able to give an adequate answer on how you spend your money, and you become conscious of what to get and what is not necessary.

You will accumulate more debt when you keep on paying with your credit card debt, and this might affect your credit financial score, you should know how to maintain good credit and keep your credit card debt as low as possible. 

When you put away your credit card and stick to cash, all you have to do is make a list of what you want before you go out or do anything else. At the end of the day, you will be able to make a debt payment from the extra amount reserve, and from the excesses gotten from the cash.


9. Be Organize.

When we talk about paying off debt, it is important for you to be organize in your mind, mentally, emotionally, and physically. Don't entertain negative thoughts, all that are a bit of a distraction for you not to be able to put yourself together, in calculating how to pay off your debt.

When you give heed to distraction, you lose focus on what you actually need to do to liberate yourself from your debt.

but when you are organize all round, paying off your debt won't get a strong hold on you, you will be able to set aside enough time to go through your debt payment, take note of the debt you have paid, and the one yet to be paid, and how many months are left for you to pay off your debt. Then you will be able to sketch up a plan on how to pay off your debt.


10. Avoid Returning To Bad Habits.


10. Avoid Returning To Bad Habits.


When you get to the end of your goal, all you need do is stick to the good habit that has brought you thus far, and lift you from debt, and when you stop your bad habit, never think of going back to such life, no matter how pleasure and enticing the bad habit was, never have the mindset to turn back. 

However, like I always say it's never easy to stop a bad habit and learn a good habit, it takes time though but once you put your mind and effort into it, you will see a great change and nothing will take you back to your bad habit.

When you've paid off your credit card debt, it can be very tricky at times to slide back Into old habits, there might be little difficulties that can spark the old habit, but don't buy into it, and don't make it a habit go back and forth, rather it should be in the past and you need to see yourself as a changed person. 


11. Get A Consolidation Loan

Debt payment comes with a lot of tasks and stress, sometimes it might not be easy to make a debt payment, due to some financial constraints, depending on the situation, you might think of running away from your lenders when your debt has accumulated more than you expect, and it seems all doors all shut against you. 

when you see yourself in this mess, take a consolidation loan, and what is a consolidation loan it's a loan that has to do with you taking out a fixed-rate loan to pay off more loans in installments over a set period.

One good thing about a consolidation loan debt payment is if the bank or any organization, or company you are working with or patterning with, helps you consolidate all of your debts into one single loan with a lower interest rate it will be so easy and comfortable for you, because it will help you create a budget by saving up a bit of money every month and also help to keep you from building up new debt, while you are still paying the consolidation loan.

Consolidation loans allow different types of borrowers to repay each money that was given to them as a loan, to just one single loan with a one-month payment, which often falls at a lower interest rate.

Finally, the only benefit of a consolidation loan in the aspect of paying off debt is making use of a spending plan by ensuring your spending habit is under your subjection.


12. Sell Unwanted Items.

While it may seem absurd to you, the truth is that selling unneeded stuff might help you raise cash to pay off debt. Not everything in your home is necessary, not everything is important, but some might be expensive.

Find out those goods that are not necessary, but are expensive, and you don't have a need for them, put them up for sale at a discount price, you be surprised at the amount you earned, and use it to pay off your existing debt. 


Save this for later


Save this for the latter


Don't worry, you can always get out of paying off debt. It may look like an insurmountable undertaking at the moment, but if you follow the crucial steps I just outlined, you will realize that it is really simple to pay off your debt

Have a budget that will help you resolve your debt. regardless of how large your ambition or vision is. There is money involved, and if your spending matches your goal, it can help you save and eliminate your debt. 



xoxo, Denoshe
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  • Osaretin says:

    Your site has been so helpful to me. It has help me level up in so many areas of my life. God richly bless you.

    • Gift Edese says:

      Awooo. So nice to hear. Keep the good work going. Thanks I appreciate


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