Tips to Help You Get Out of Debt Faster
Whatever your job may be in Singapore, there will always be times when we’ll have to make loans or borrow money. Getting in an emergency and paying for hospital bills, losing your money from gambling, and many other situations may arise in which you’ll have to borrow some money. At times, we might forget our debts and end up piling them on top of each other. We might reach the point where we’re stuck in debt that our financial life is going down in a spiral already. So, here are some tips you can try so that you can finish paying off your debts faster.
Use different strategies
Even when you’re not trying to pay off debt, you should still employ strategies when spending or saving money. A good method to try is the 50/30/20 strategy, whether you intend to pay your debt faster or just want to save money more efficiently. Basically, 50% of your income goes to your necessities, like food, electricity bill, and etc. 30% goes to your wants and 20% should be left as savings or payment for debt. Take note that you don’t have to use up all 30% of your money on wants. If you have some left (and you usually will), add that to your savings/debt payment.
Make a list of your debts
Having a list can be a good way to organize and prioritize the payments you need to make. This is because you can immediately see the things you have to pay off and you’ll also see your progress. You can also use that list as a reminder so that you at least won’t miss a day paying. On the list, you can write down your balance, the interest rate, your monthly payment, and other necessary information.
Get a side hustle
If you are desperate to pay your debts fast, it may be a good idea to do extra work. This way, you won’t have to rely on only one source of income and you can simply earn faster. If you have time to spare and you have a certain knowledge on content writing, web design and etc. you can try looking for side jobs on the internet or anywhere around Singapore. If the thought of having a second job feels tiring, try ones that don’t really require much effort like ones you can just do at home.
Cut unnecessary expenses
You usually won’t notice that you’re spending a lot of money on the wrong things. Taking control of your spending habits is probably one of the more straightforward ways to pay debt and save money faster. Take a bike to work if you can, cut your website subscriptions if you don’t go to those websites anymore, or maybe cook your meals at home instead of eating in restaurants.