The quicker you pay off your debts, the sooner you will have more financial flexibility and feel like you can control your own destiny again. Debts can take a real toll on the mind and body as you are always worrying about having to pay them back. With that in mind, here are 3 ways that you can pay off your debt and have more control over your money.
Friends and Family
If you have the option, then you could try and borrow some money from friends or family in order to pay off your debts. This won’t be possible for a lot of people. However, if you can, then it can mean that you don’t have to pay off large interest amounts. It can also give you more time to pay back the overall amount if you are struggling with payments. Make sure that if you borrow money from your friends or family that you pay them back as no doing so will ruin your relationship. If you are worried about this, then don’t borrow from friends or family. If you have friends and family who are willing and comfortable with lending you money, then you can prevent large interest on your debt and pay them off much quicker. You can arrange how you are going to pay them back either through a large sum or a monthly payment. Your friends and family are going to be a much nice debt collector than a loan company.
This is the most common way to pay off a debt. You will make a monthly payment to the company that you borrowed from, and gradually your debt will decrease. Depending on the type of debt you have and the amount you are paying this could be quickly or it could take years. A lot of debts will have less interest the quicker you pay them back, so you might want to increase your monthly payments in order to pay it off faster. Another option is to use debt consolidation loan companies so that you can put all of your debts into a single monthly payment. This is really helpful if you have multiple debts and it can save you time managing each one individually. Instead, you only make one payment to one company once a month which is much easier.
It might sound strange, but you could use your savings to pay off your debts. The reason for this is that once the debts are gone, they are gone. You will be able to save the money that you were spending paying back your debts on saving. Once you have paid them off, then you will be able to save far more money, and you won’t have a debt hanging over your head. You should not use your savings to pay off your debts if it ends up completely draining you of savings as everyone needs a rainy day fund and not having one could just put you into more debt. However, if you feel comfortable doing it then using your savings to pay off your debt can save your money on interest and give you back some financial freedom.