Are you one of those individuals that continuously struggle with paying back your loans? Don’t get swallowed up by the debt circle and eventually get yourself in more financial trouble than you can handle. Instead, start thinking about practical and achievable ways of how you can start paying your loans back and work towards a more stable and debt-free financial situation.
Tips on how you can pay back your loans smarter and quicker
- Start by making a spreadsheet, detailing, and categorizing all your debt, ranging from the highest to the lowest interest rates.
- Draft a monthly budget that includes an amount for paying back your loans.
- Start by paying off the smaller debts first. It will give you a perception of accomplishment and motivate you to keep going once you start seeing some of the debt disappear.
- Review your expenses and assess where you can cut down costs and instead pay more towards your debt. Try to make more significant or more frequent loan repayments wherever possible.
- Whenever you get money back from the taxman, utilize the money towards paying off your loans faster.
- Always make loan repayments on time, as late payment can lead to penalties and hurting your credit score.
- Try not to use your credit card if possible since they will only add to your debt.
- Try to find a new means of income to put towards paying back your debt.
- Don’t be hesitant to ask for assistance. You can speak to your agent at Mammoth Investor, your debt counsellors, or creditors. They may be in a position to lower the repayment terms.
5 Ways of generating an additional income
If you need a little extra cash on the side to relieve some of the pressure, you can maybe consider some of these choices, even if it’s just for a while until you’re back on your feet or feel more comfortable with your present financial situation.
- Signing up for focus groups and getting paid for your opinion.
- Taking part in paid surveys to earn a bit of extra cash. It doesn’t allow you to make a living off it, but it does bring in some extra money.
- Turn your hobbies into a business by selling some of your baked goods, jewellery, art, and crafts at your local markets or advertise on social media.
- Become a consultant or direct seller. If you are good at working with the public and have a knack for selling, then you can start out small and sell products that you would recommend to people you know.
- Consider being a film extra since local film and TV productions often require people to be part of background scenes.
Try to borrow responsibly and not get yourself into trouble by having too debt and too little money to pay for it. Before applying for a loan, first, assess if you can afford the debt and strategize on how you can pay it off as smartly and quickly as possible.