How to Speed Up Debt Repayment

  • Comments 0
    0
  • OTA 38
  •    +

We can all agree that $90,460 is a significant figure. But do you know what those numbers mean? Well, that is the amount of debt the average American has, according to a 2021 CNBC report.

Advertisements
How to Speed Up Debt Repayment

The debts include credit cards, consumer debt products, student loans, personal loans, and mortgages.

If you are lucky, you are not contributing to these statistics. However, for as many people who are a part of the statistics, they have to fix their debt portfolio, no matter how small.

In this article, we will show you how to speed up debt repayment with clear, workable solutions.

  1. Get Clarity of Your Finances

    Grab a pen and paper and get ready for some honesty. First, make a list of all your total incomes, considering all the sources of income you have.

    The next step is to do the same for all your expenses. When we say all, we mean all. Yes, that includes that cup of coffee you stop to pick up on your way to work every day. Do the same for loan balances, which should fall in the obligatory expenses column.

    At this point, you may realize challenges in remembering what you spent money on. To avoid this going forward, sign up to Chunk Finance. The platform will make it easy to get better control of your finances.

    Every time money goes out of your account, you get a notification. Visual presentation of your expenditure with graphs and charts makes it easy to track your spending. Best of all, the experts give you advice on debt pay-down strategies.

    With an overview of your finances, it can be easy to set up a budget. At the top of the list should be obligatory expenses. Focus on the needs and try to minimize the wants. You should also put aside something small for some of the things you like.

    The best way not to stick to a budget is to be too rigid. You work for the money, so reward yourself a little. Note, the last part please, a little. You will understand why in our workable point number two.

  2. Look For Sources of Extra Cash

    Tighten your belt for this part because it can be difficult. Sources of extra cash can come from cutting out some of your expenditure. You know we are going back to that cup of delicious caffeine pleasure you so enjoy, right? Well, no more stopping at the coffee shop; make your own at home.

    The same goes for your favorite lunch spot at that restaurant that serves delicious meals. The internet has the same recipes, so get cooking.

    At this point, it should be pretty clear where we are going. But in case it isn't, allow us to word it like this. No more frivolous spending for things you can do for yourself.

    And, stop swiping that credit card at every opportunity. Shop with cash or your debit card. That way, it limits your spending to the money you have.

    Do you want to know how much you can save? Here is what you should do. Go to the metal shop and ask them to make you a piggy bank. No, don’t buy one from the shops. We want one that you can’t pry open easily.

    Now, put the equivalent of what you would spend on unnecessary items into the box. So, the $10 you spend on coffee every week goes in, and so on. Give yourself about six months to do this.

    At the end of the period, go back to the metal shop and ask them to open it for you. Please come back here and let us know how much you saved.

  3. Use the Right Strategies to Repay Debts

    Do you want to master the trick of paying off debt fast? Simple, have the right strategies. Let's look at some of them.

    • Debt Snowball Method

      Debt snowball methods provide a solution on how to pay off debt fast with low income. List down your loan balances from highest to lowest.

      Next, allocate a minimum amount to each of them. Now, start by clearing the lowest amount fast. Any extra cash, like what you saved in step 2 above, goes into clearing these balances.

      Once you finish the lowest, move on to the second-lowest amount. Roll over the amount you were paying to increase the amount that goes into settling the second-lowest amount. Maintain the same rollover until you get to the highest loan balance.

      The debt snowball method is fantastic for its motivational factor. It feels good to tick off loan amounts from the list, no matter how small.

    • Avalanche Debt Repayment Method

      The avalanche debt repayment method is the opposite of debt snowball. Start with the highest amount and then move on to the lowest? It provides a fantastic way to clear high loan amounts fast.

      You also get the advantage of taking care of the high-interest rates that come with the high balances. It does require a lot of dedication and commitment, though.

    • Zero Interest Balance Transfer

      A zero-interest balance transfer is the best way to pay off credit card debt. Some credit card issuers give a 0% introductory rate for new cards.

      You can transfer high-interest credit card balances to such. The credit card issuers can give windows of up to 18 months, during which they do not charge interest.

    • Debt consolidation

      Debt consolidation means bringing all the loan balances together. You then take one loan, usually with better interest rates, to clear them.

    • Debt Renegotiation or Refinancing

      Some lenders will be willing to listen if you want to renegotiate some loan terms. Remember, they want their money back. Anything that can help them to achieve this will be a welcome solution. Put on your negotiating hat and present your case to them.

      It can give you more flexibility and leeway with managing some of the debts. Under debt restructuring, you can alter existing debt. It could be in the form of extending the terms or delaying interest payments.

      Debt refinancing is another option if renegotiation fails. In this case, you replace the existing loan with another that has more favorable terms or conditions.

Final Thoughts

Speeding up debt repayment means better management of your finances. We have shown you how in our points 1 and 2 above.

The next part is to adopt the right repayment strategy, as we have said in the third point. Choose the one that will work best for you, and then learn a little bit more about it. With discipline and dedication, unmanageable debt may be a thing of the past.

Check the comment section below for additional information, share what you know, or ask a question about this article by leaving a comment below. And, to quickly find answers to your questions, use our search Search engine.

Note: Some of the information in samples on this website may have been impersonated or spoofed.

Bookmark articleSave

Was this article helpful?

  • Like (0)
  •       
  • Dislike (0)   
Advertisements

Comments, Questions, Answers, or Reviews

There are no comments as yet, please leave one below or revisit.

To protect your privacy, please remove sensitive or identifiable information from your comments, questions, or reviews. We will use your IP address to display your approximate location to other users when you make a post. That location is not enough to find you.

Your post will be set as anonymous because you are not signed in. An anonymous post cannot be edited or deleted, therefore, review it carefully before posting. Sign-in.

Write Your Comment, Question, Answer, or Review

Advertisements
Trending Trending Now

View more...

Online Threat Alerts Security Tips

Pay the safest way

Credit cards are the safest way to pay for online purchases because you can dispute the charges if you never get the goods or services or if the offer was misrepresented. Federal law limits your liability to $50 if someone makes unauthorized charges to your account, and most credit card issuers will remove them completely if you report the problem promptly.

Guard your personal information

In any transaction you conduct, make sure to check with your state or local consumer protection agency and the Better Business Bureau (BBB) to see if the seller, charity, company, or organization is credible. Be especially wary if the entity is unfamiliar to you. Always call the number found on a website’s contact information to make sure the number legitimately belongs to the entity you are dealing with.

Be careful of the information you share

Never give out your codes, passwords or personal information, unless you are sure of who you're dealing with

Know who you’re dealing with

Crooks pretending to be from companies you do business with may call or send an email, claiming they need to verify your personal information. Don’t provide your credit card or bank account number unless you are actually paying for something and know who you are sending payment to. Your social security number should not be necessary unless you are applying for credit. Be especially suspicious if someone claiming to be from a company with whom you have an account asks for information that the business already has.

Check your accounts

Regularly check your account transactions and report any suspicious or unauthorised transactions.

Don’t believe promises of easy money

If someone claims that you can earn money with little or no work, get a loan or credit card even if you have bad credit, or make money on an investment with little or no risk, it’s probably a scam. Oftentimes, offers that seem too good to be true, actually are too good to be true.

Do not open email from people you don’t know

If you are unsure whether an email you received is legitimate, try contacting the sender directly via other means. Do not click on any links in an email unless you are sure it is safe.

Think before you click

If an email or text message looks suspicious, don’t open any attachments or click on the links.

Verify urgent requests or unsolicited emails, messages or phone calls before you respond

If you receive a message or a phone call asking for immediate action and don't know the sender, it could be a phishing message.

Be careful with links and new website addresses

Malicious website addresses may appear almost identical to legitimate sites. Scammers often use a slight variation in spelling or logo to lure you. Malicious links can also come from friends whose email has unknowingly been compromised, so be careful.

Secure your personal information

Before providing any personal information, such as your date of birth, Social Security number, account numbers, and passwords, be sure the website is secure.

Stay informed on the latest cyber threats

Keep yourself up to date on current scams by visiting this website daily.

Use Strong Passwords

Strong passwords are critical to online security.

Keep your software up to date and maintain preventative software programs

Keep all of your software applications up to date on your computers and mobile devices. Install software that provides antivirus, firewall, and email filter services.

Update the operating systems on your electronic devices

Make sure your operating systems (OSs) and applications are up to date on all of your electronic devices. Older and unpatched versions of OSs and software are the target of many hacks. Read the CISA security tip on Understanding Patches and Software Updates for more information.

What if You Got Scammed?

Stop Contact With The Scammer

Hang up the phone. Do not reply to emails, messages, or letters that the scammer sends. Do not make any more payments to the scammer. Beware of additional scammers who may contact you claiming they can help you get your lost money back.

Secure Your Finances

  • Report potentially compromised bank account, credit or debit card information to your financial institution(s) immediately. They may be able to cancel or reverse fraudulent transactions.
  • Notify the three major credit bureaus. They can add a fraud alert to warn potential credit grantors that you may be a victim of identity theft. You may also want to consider placing a free security freeze on your credit report. Doing so prevents lenders and others from accessing your credit report entirely, which will prevent them from extending credit:

Check Your Computer

If your computer was accessed or otherwise affected by a scam, check to make sure that your anti-virus is up-to-date and running and that your system is free of malware and keylogging software. You may also need to seek the help of a computer repair company. Consider utilizing the Better Business Bureau’s website to find a reputable company.

Change Your Account Passwords

Update your bank, credit card, social media, and email account passwords to try to limit further unauthorized access. Make sure to choose strong passwords when changing account passwords.

Report The Scam

Reporting helps protect others. While agencies can’t always track down perpetrators of crimes against scammers, they can utilize the information gathered to record patterns of abuse which may lead to action being taken against a company or industry.

Report your issue to the following agencies based on the nature of the scam:

  • Local Law Enforcement: Consumers are encouraged to report scams to their local police department or sheriff’s office, especially if you lost money or property or had your identity compromised.
  • Federal Trade Commission: Contact the Federal Trade Commission (FTC) at 1-877-FTC-HELP (1-877-382-4357) or use the Online Complaint Assistant to report various types of fraud, including counterfeit checks, lottery or sweepstakes scams, and more.
  • Identitytheft.gov: If someone is using your personal information, like your Social Security, credit card, or bank account number, to open new accounts, make purchases, or get a tax refund, report it at www.identitytheft.gov. This federal government site will also help you create your Identity Theft Report and a personal recovery plan based on your situation. Questions can be directed to 877-ID THEFT.

How To Recognize a Phishing Scam

Scammers use email or text messages to try to steal your passwords, account numbers, or Social Security numbers. If they get that information, they could get access to your email, bank, or other accounts. Or they could sell your information to other scammers. Scammers launch thousands of phishing attacks like these every day — and they’re often successful.

Scammers often update their tactics to keep up with the latest news or trends, but here are some common tactics used in phishing emails or text messages:

Phishing emails and text messages often tell a story to trick you into clicking on a link or opening an attachment. You might get an unexpected email or text message that looks like it’s from a company you know or trust, like a bank or a credit card or utility company. Or maybe it’s from an online payment website or app. The message could be from a scammer, who might

  • say they’ve noticed some suspicious activity or log-in attempts — they haven’t
  • claim there’s a problem with your account or your payment information — there isn’t
  • say you need to confirm some personal or financial information — you don’t
  • include an invoice you don’t recognize — it’s fake
  • want you to click on a link to make a payment — but the link has malware
  • say you’re eligible to register for a government refund — it’s a scam
  • offer a coupon for free stuff — it’s not real

About Online Threat Alerts (OTA)

Online Threat Alerts or OTA is an anti-cybercrime community that started in 2012. OTA alerts the public to cyber crimes and other web threats.

By alerting the public, we have prevented a lot of online users from getting scammed or becoming victims of cybercrimes.

With the ever-increasing number of people going online, it important to have a community like OTA that continuously alerts or protects those same people from cyber-criminals, scammers and hackers, who are every day finding new ways of carrying out their malicious activities.

Online users can help by reporting suspicious or malicious messages or websites to OTA. And, if they want to determine if a message or website is a threat or scam, they can use OTA's search engine to search for the website or parts of the message for information.

Help maintain Online Threat Alerts (OTA).

How to Speed Up Debt Repayment