5 EASY WAYS OF CLEARING DEBTS AND HAVING FINANCIAL FREEDOM IN 2023

Do you have a problem clearing your debts?

Welcome, this article is mainly for you. Paying debts is not something easy, sometimes it can
even hinder us from achieving our goals. It may take years to even get out of some debts,
because the interest keeps increasing and the higher the debt the bigger the interest. Many
people spend their whole life paying debts not having the time to think about their dreams or
achieving their goals. Clearing your debts will give a head on achieving your goals.
Debts can cause a lot of emotional and even physical stress to a person. It tampers with mental
health too. Thinking about how to repay debts may sometimes lead to sleepless nights,
headaches and inability to focus and this often leads to depression and high blood pressure. If
you feel anxious when you think about repayment of debt then it is a sign that you need this
article.
Without wasting time let’s find out ways to clear debts so you’d be able to think about achieving
your goals

1. Pay more than the minimum:

the fact here is the higher the debt the higher the interest so
when you pay more than what you are supposed to pay every month, the rate of the interest
reduces. By paying more than minimum every time you pay enables you to pay the debt faster.
The more you pay the faster you will be debt free. This would even make you happy and have
peace of mind, you will be able to sleep better and think with a clear mind. Also you will be
saving you some money because the interest will not be as much as the paying actual minimum
payment. However, paying the actual minimum payment will increase your credit score and will
end up paying more than your credit limit, which will have a negative effect on your credit score.
But paying more than your minimum payment will improve your credit scores.

2. Pay off your most expensive loan first:

This is the loan that has the highest interest rate.
Paying it off first will reduce the interest rate which will automatically decrease the overall loan.
By paying off your most expensive loan first will save you from more debt, because more
interest means more debts.
Also, following this method will help you pay your debt and will enable you to sort out the debts
in order of the most important and expensive ones. Making you less worry about the future
interest of the smaller debts since it is small, the interest will not be much. You just have to
continue to use this method, paying down the next debt with the highest interest rate, before you
know it, you will be almost done with clearing your debts.

3. Re-examine your budget:

you might want to count down some of your expenses by
spending less money. Create a new budget list, this time writing only the important things you
need and you can’t live without.
Cutting down your expenses doesn’t mean you should not include your wants after paying off
the debts, but for that period of time, removing most of your wants from your budget will make
you have extra money to pay. Making such a financial sacrifice will help you pay your debts
faster, giving time and a clear mind to pursue your goals. You will not have to worry about any
interest or debt anymore. Discuss it with your wife and kids that you are cutting off some things
for a period of time to clear off your debts. Explain to them why it is necessary to cut some
things off and once the debts are cleared or almost clear you can go back to your normal
budget.

4. Find a side hustle:

one of the best ways to pay debts quickly is earning more or spending
less. There is no bad side to side hustle, it actually means extra money and there are lots of
side hustle you can start. It doesn’t have to be time consuming or stressful.
Examples of side hustle are affiliate marketing, freelancing, transcriber, you can create an online
store, sell your old stuff etc. Most of this side hustle can be done online. You can also find a
part- time job. Although it is not something easy, like I said before, making financial sacrifices to
clear your debts is worth it in the end. You can discuss it with your boss to allow you to work for
a lesser hour so that you can be able to do other jobs for a period of time.

5. Stop saving and investing for some time:

if you are really determined to pay off your
debts then you should direct all your attention to it. I have said this before, paying your debts is
like saving money too because the quicker you pay the lesser the interest.
Once you are debt free you can start saving and investing again. Besides, you will be able to
pay your debts on time when you direct all your attention to it. After you get your needs and the
necessary things that will sustain you through the month, instead of saving or using the
remaining to invest, you can use it to pay your debts. If possible, you can pay more than once in
a month. The faster you clear your debts the better for you and your future.

BOTTOMLINE
Breaking free from debts can be challenging, but by following these tips it will be a lot easier for
you. Because debt has a lot of negative impact on one’s life, the interest rate increases with
time, some employees will not employ you if you have too many debts. Being in debt also
makes it difficult to get qualified for other loans and this will lead to borrowing at higher interest
rate. Finally, get to know the reason you got into debt at first and be sure not to repeat the same
thing over again.