It might take a lot of time and effort to pay off 50000 or more, but remember that there is nothing as satisfying as living a debt free life! Financial freedom is well sought-after in a world crammed with several financial challenges.
To pay off 50000 you can either search for a credit counselling agency with a good debt management plan, select one of the several debt-reduction strategies and “Do it yourself”, or you can file for a bankruptcy.
Are you swimming in the murky sea of debt but still have dreams about a life of absolute financial freedom? Do you need a major breakthrough concerning the repayment of that $50,000 debt you find yourself buried in? If you need answers regarding the questions stated above, you are quite lucky. This article is poised to provide you with significant information and hint concerning how to pay off 50,000 debt quickly, without getting yourself into more debt.
Steps to Take in Order to Pay Off 50000 in Debt
People get into debt because of several reasons. For you, it could be because of those student loans you obtained; while for others it could the mortgage loan or car loan they obtained and so on. Being in debt isn’t a bad thing. Most of the wealthiest men you know were deep in debt at one point in their life. Recently, we heard of how US. Rapper Kanye West, went from being stuck in a debt of $53 million to making more than $150 million in a year! According to Forbes, Kanye West is officially a Billionaire. This could be you!
Debt isn’t a death sentence to your financial life or aspirations. With the right tactic and knowledge, merged with dogged determination, you will smile, eventually. I will provide you with the necessary knowledge and tip, while it is left for you to summon up the determination needed to overcome this financial quagmire. I believe in you, believe in yourself!
Amassing debt of $50,000 is not impossible. Several Americans find themselves in such situation each year. Based on findings by Experian, a primary credit reporting bureau in the United State, 1.6 million American consumers has credit card debt of over $50,000 in the year 2016. That was around 3 years ago.
Go for which ever strategy you feel is best for you and your financial situation.
Gathering a debt as huge as $50,000 starts slowly and innocently, but eventually ends in a frustrating way. You can get into a huge debt by having meals at a restaurant four to five times weekly, taking up bar tabs sometimes, probably purchasing a new car, electrical gadget, going vacation, or even taking on a cost hobby such as skydiving or golf. All you simply have to do, is to flash that credit card of yours a few times and BOOM, you find yourself in debt. Mind you, credit card debt is one of the most prominent debt In the US.
Most people lack knowledge about debt management, and this is one reason why they sink deeper into debt. To manage your debt effectively, do not take on several credit cards and make just minimum payments on each credit cards.
Over 167 million American adults own a minimum of one credit card and the average consumer with a credit card owns about four of them. There exist an average credit restriction for cardholders, and as at the beginning of 2017, it was $8,071, based on findings by Experian. You don’t have to be miles above average with the quantity of credit cards you move around with, and the maximum amount you charge on each cards to attain $50,000. So the big question is: How do you get out?
Like stated earlier, you can get out of this financial quagmire by either adopting a good debt management strategy, using a debt-reduction methods, or filing for bankruptcy (worst case scenario). In this guide, we will be filling you out on the first on the list which is: Adopting an effective debt management plan.
Before You Think of Paying Down That Huge Debt
Regardless of the step you adopt in paying off your debt, be it a credit card debt, a debt from a mortgage loan you obtained, or a student loan, there exist few things you must do to makes sure that it works out fine.
To have full control of your finances, you have to freeze the use of your credit cards, and unfreeze only when in urgent emergency situation. Then afterwards, start paying for all purchases in cash. When you start paying for your purchases in cash, you will grasp how much money you spend daily. Taking such measure would surely hurt, but it is for the greater good because it helps you remain disciplined about the manner in which you spend your money.
Aside that, below are a few steps that will assist you in conquering that $50,000 debt of yours.
Compliment your income with an extra job:
With a second job, you will have extra money to cut down your credit card debt (or whichever debt it is) each month. It would also be much better if you can find someone to share basic expenses (utilities, rent, transportation, etc.) with. This second job can be anything ranging from babysitting, freelancing, etc.
Reduce your expenses:
In order to save more, you need to cut your expenses. When in debt, be it a credit card debt or any debt, you need to be on a strict spending budget; this will enable you save enough money for the payment of your debt. If you decide to spend extravagantly even when in debt, you will eventually run out of cash and find yourself in more debt. Thus, the wise thing to do when in debt is to cut down your expenses. One of the ways to do this is by creating a budget.
Becoming broke is one of what happens when your expenses is greater than your income. So, avoid going down that road if you cherish your financial freedom.
Talk to your credit card companies:
If you have a good credit score, or you are someone who makes monthly payments on your credit card debt, even if it is minimum payments, you can decide to play the loyalty card by requesting that they receive less than what your owe to discard the debt.
Automate Payments:
Making automated payments can help you in two ways. First off, it makes you aware that you need to have money in your account so that you can settle your bill, or you suffer the repercussions of having insufficient money in your account. Second, you will be able to discard the common excuse that “It skipped my mind to mail the check.” This is a very effective way to settle your bills and boost your personal finance.
Even if you adopt two or three of the four suggestions outlined above, you should still be able to settle your debt issues.
Now, the next big question is, what method should you adopt?
Debt Management Program:
This plan might be the simplest way to pay off your huge debt because non-profit credit counselling agencies such as InCharge assist with one of the most challenging parts, which is reducing interest rate on debt and creating a budget that you can stick to.
InCharge’s credit counselors liaise with credit card companies to find an interest rate, including a monthly payment that wouldn’t be much of a financial burden for you. The average incarge customer has their interest rate slashed to around 8%, though it can be much lower than this. Aside from helping you draft a budget, InCharge counselors can also provide you with effective tips on how to properly manage your money. These individuals evaluate all your sources of income and how you spend, then they provide suggestions regarding how to create a budget so you have adequate money to settle the necessary bills and pay off your debt, gradually.
What are the Four Important Steps You Would Take to Pay Off Your Debt?
First, you need to draft a budget then get a side job, sell unnecessary items, and change your spending habits. If you strictly adhere to these steps, you should pay off your debt in no time!
With the right debt repayment strategy, discipline and determination, you can repay that huge debt of yours in as little as two years. Before you start repaying your debt, you need to know the type of debt you are dealing with-is it a student loan debt, mortgage debt, card debt, or something else?
For instance, if the debt you owe are all student loans ( it could be other type of debt) , the next thing to do is to determine the amount of debt you owe. Having such knowledge will help you draft a personalized plan on how to settle them.
Now, let’s go in-depth into those points:
Draft a budget:
This is the first and one of the most important thing to do if you are eager to clear your debt and enjoy a life of financial freedom. A budget will help you determine how your money is being spent and what it is being spent on. Creating a budget is a very easy process. You can make use of a finance tool such as Mint.com to create a budget.
After making a budget, evaluate those budget categories to see if there is something that can be discarded. If you choose not to scale back your spending, you will go further into the dark hole of debt.
Get a side job:
When in debt, you will need enough of money to pay off the debt and settle your bills. With a side job, you will have extra money to settle your debt and take good care of yourself. You can take up a less stressful job to complement your monthly income. This side job could be anything ranging from babysitting, lawn mowing, car washing, house cleaning, freelancing, etc.
Of course, working two jobs isn’t quite easy, but those are the sacrifices you must make if you want to get out of debt. Moreover, it’s only for a while.
Sell unnecessary items:
Do you have any valuable gadget or item that are sitting idle in your garage? Search for home for gadget and items that you can put up on sale on either eBay or on Craigslist. Carry out an extensive research to make sure that you sell these items at the right price.
After successfully selling the items, throw the money generate on your debt. You can start by paying off the debt with the highest interest rate. Making monthly payment is one of the best ways to gradually settle your debt. Ensure that each month, you put some cash into the repayment of your debt.
Change your spending habit:
If you spend more than your monthly income, if you are always eager to draw out your credit card when you go out, or if you spend
extravagantly, you will find it hard to pay off your debt. To settle your debt without much challenges, you have to be ready to make certain sacrifices. One of those sacrifices is keeping your credit card away from your wallet so that you reduce the way you spend. Another one is cutting off unnecessary spending habits such as eating outside, going on vacations, early morning coffee in the coffee shop, etc.
When you spend less, you tend to save more. But when you spend extravagantly, you will eventually run out of money and find yourself in more debt. Change your spending habit if you want to quickly settle your debt and enjoy a life free from debt.
You can also read my other post about the mistakes people make when trying to get out of debt fast on their own in this article.
How Can I Pay Off 30 000 in Debt Quickly?
There are some reasons why you are finding it hard to get out of that debt, and the key to paying any amount of debt is by adopting the best debt repayment strategy. Also, to ensure that your debt repayment plan is quite effective, you will have to make certain sacrifices. These sacrifices ranges from cutting down some unnecessary expenses, getting a second job, selling some items that are not of use, etc.
First, you have to figure out how much you owe, including the type of debt. After that, you need to destroy your credit card. Destroying your credit card will help in curtailing the way you spend. I understand that not everyone have the courage to do so, but like I said in the beginning, you need to make sacrifices if you want to get out of this debt. That is one of them!
Now, you need more money. How do you go about this? Its either you find a high paying job or get a side job. Getting a side job is much easier than getting a high paying job. With the extra money generated from the side job, you can start reducing the debt by making monthly payments. You will also have to discard extravagant spending habit. Halt the purchase of any new gadget or item. Don’t purchase a new car during this period, you can go for used cars instead or totally forget about purchasing a car.
Create a budget and stick to it. Spend wisely. Don’t eat outside. Put all tax refunds and bonuses towards the repayment of your debt. To ensure that you remain motivated, you can create reward plan in your budget. For example, if you attain a feat in the payment of the debt, you can either get yourself a new book (this could be anything) or go out for lunch. With seriousness and commitment, you should be able to pay off this debt in less than two years.
Are you in debt and you need money? There are few things to consider when in such a situation. Also, there are some US. organizations that help families in financial need for free. Contact them if you need financial assistance.
If peradventure, you find yourself in a huge debt. Probably you obtained some student loans (or any type of loan) and you are finding it hard to pay back, you can seek professional help. This help comes in the form of programs that assist debtors in repaying this debt without much difficulty. Find a program which suits your need and give it a try!
