Start by setting a realistic goal
It may take time and self-discipline to pay off debt. It’s important that you establish realistic goals to motivate yourself. Set clear, achievable goals for you to pay off debt.
Pay more than the minimum required
Paying only the minimum prolongs the repayment process. It’s important to keep in mind that the longer you pay, the more interest you pay in the long run. Increased payments will save you thousands in interest payments.
Renegotiate terms with your creditors
You could always negotiate with your creditors and ask for a new and lower repayment schedule. You could also request a lower interest rate.
Stay conscious about your spending
One way of keeping track of your spending is by paying for your purchases with cash instead of credit. If you need to, you can even take your credit cards out of your wallet. By paying with cash instead of credit you become more conscious of your spending habits.
Prioritise your debts
Make a complete list of all your debts and prioritise them in order of importance.
Create a monthly spending plan and ensure that you are living within your means. This can help you create a timeline on when you can expect to become debt-free. Reduce your expenses so that you can free up some cash which can be used to pay off debt.
Use your savings or bonus payments to service debt
You can use your annual bonus to pay off debt faster. The money you save by paying down your debts faster will be substantially higher than the interest you will earn in a savings account.
Consider refinancing your mortgage
If you own your home, you may have equity available to consolidate your debts into your mortgage.