During my younger years, I was also into debt and while, I was thinking how I got into that situation – a lot of things running in my mind – peer pressure, the society, my environment, being deprived and upgrading my lifestyle even though I can’t afford it. Plus, I was overwhelmed with the number of credit cards I had in my hands that I kept on swiping even though my salary can no longer afford it. In the end – it was a lack of discipline and being financially illiterate dragged me onto trouble. It was a lesson learned the hard way, for sure!
And then one day, I woke up and decided to live my day simply and within means. It was not an easy peat but the sacrifice and delayed gratification worthy of who and what I am today. With that being said, here's the top five ways on how I faced debt management and eventually get rid of it.
Goal: Get off from debt. Increase the credit score.
The Strategy: List down the credit cards with its corresponding amount and sort in decreasing order. I started paying the highest amount while the others – I am going to pay the minimum.
Analyzing how much I was earning and what were those mandatory expenses. I tracked the day in and day out of the money and listed everything on a spreadsheet so I can easily check and spot the ins and outs of money. The highest percentage was dining and eating outside with friends, my overpriced coffee and shopping on clothes. As a result, I opted to brought food from home, look for alternative cheaper coffee for my caffeine intake and stopped the shopping for the meantime, until I achieved the goal.
Since I already have the list of non-negotiable expenses; I started living within means – of what I can afford. I also maximized the benefits of living under my parents’ house which is paying of bills were not required.
Yes, it is okay to borrow money from institution that offers short term financial solutions. They usually offer lower interest rate compared to banks, similar here. After doing some math and computation; I took the opportunity to loan money to pay for the other debts. By doing so, I also re-building my credit score. Check this credit loan site, click here.
This is the most important! I had been onto debt because I wanted to experience and tried new stuff that I never had growing up and so – I got overwhelmed. So, whenever I ticked one off the list – I rewarding myself! Reward doesn’t mean have to be extravagant or fancy – for me it was like having my overpriced caramel macchiato.
And then one day, I woke up and decided to live my day simply and within means. It was not an easy peat but the sacrifice and delayed gratification worthy of who and what I am today. With that being said, here's the top five ways on how I faced debt management and eventually get rid of it.
1. Listed all the credit cards with the corresponding amount that I needed to pay.
Goal: Get off from debt. Increase the credit score.
The Strategy: List down the credit cards with its corresponding amount and sort in decreasing order. I started paying the highest amount while the others – I am going to pay the minimum.
2. I analyzed and listed down my income vs expenses.
Analyzing how much I was earning and what were those mandatory expenses. I tracked the day in and day out of the money and listed everything on a spreadsheet so I can easily check and spot the ins and outs of money. The highest percentage was dining and eating outside with friends, my overpriced coffee and shopping on clothes. As a result, I opted to brought food from home, look for alternative cheaper coffee for my caffeine intake and stopped the shopping for the meantime, until I achieved the goal.
3. I lived within what I can afford.
Since I already have the list of non-negotiable expenses; I started living within means – of what I can afford. I also maximized the benefits of living under my parents’ house which is paying of bills were not required.
4. I loaned money that offers a lower interest.
Yes, it is okay to borrow money from institution that offers short term financial solutions. They usually offer lower interest rate compared to banks, similar here. After doing some math and computation; I took the opportunity to loan money to pay for the other debts. By doing so, I also re-building my credit score. Check this credit loan site, click here.
5. Rewarding myself every time I was able to finish one debt until everything has been paid off!
This is the most important! I had been onto debt because I wanted to experience and tried new stuff that I never had growing up and so – I got overwhelmed. So, whenever I ticked one off the list – I rewarding myself! Reward doesn’t mean have to be extravagant or fancy – for me it was like having my overpriced caramel macchiato.
Cheers to our journey to financial freedom!
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