How to Become Debt Free in the Next One Year

The most surefire way to keep yourself in a financial mess is to accumulate debt. You could have student loans, credit card debt, car loans and maybe even a home loan that is bogging you down and making your life miserable. There’s always resources available online like SoFi to help you manage these debts though (https://www.sofi.com/student-loan-calculator/) but getting out of this mess won’t be easy. However, if you make a plan and are consistent enough, you will be able to manage it with ease.

As soon as all your debts are paid off, you will likely be left with some extra money that you could use elsewhere. Why don’t you opt for bitcoin betting. It is also a good way to turn up your fortune for the good.

Here is to how to become debt free in the next one year.

Pay all short-term loans

Taking a loan has become essential for most people these days because prices are rising rapidly and the wages are still not moving an inch. If you manage your loans well, there will be no problems in your life whatsoever. To end your financial troubles, start by paying off short term loans. These often have the highest rates of interest and continue piling up. This would include payday loans, credit card loans and loans from friends etc. Don’t keep this money for too long. Ideally, don’t take more than you can pay off next month.

Renegotiate with long term loan providers

If you have a home loan, student loan, business loan or auto loan, talk to your lender and check if they can negotiate the repayment process. If you have some extra money left each month that you could use to pay more, do so. If you think that you won’t be able to handle your expenses without taking extra loans each month, ask for a smaller payment each month and increase the loan tenure. Most lenders have provisions for renegotiating loans. Trying won’t hurt.

Make more money

Try to include a side hustle in your schedule that could help you earn some money. The time that you spend club hopping, eating out etc. can be utilized in making more money. Even if you are making a little, it will be enough to add something to the loan repayment amount. You could even utilize your paycheck to pay off your loans and the money from your side hustle to pay for your other expenses.

So, what are you waiting for? Take the first steps to becoming financially independent by removing debt.

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Alison

Finance Blogger at Payday Jester

I have a passion for all things finance and business so if I can help you in anyway then please get in touch and if you have any comments or feedback please leave a message.