Did you just ask the easy and fast way to pay off debt?
When you ask “easy and fast" way to pay off debt, it depends on how fast you want to do so.
In this article, I'll analyze the various ways to clear your debt in two different conditions.
There is no get rich quick scheme. Conversely, there is no get out of debt quick scheme. The dichotomy of getting out of debt in the fastest possible manner is to take a methodical and focused approach.
Also note that application of this guide may vary from location to location.
I hope you'll see one that works for you and possibly you may have some questions, suggestions and queries. Don't hesitate to share them in the comment box.
Let's get started
Basically, there are two types of debt. So, it's very important to note this from the outset as it can help your decision.
The short term (personal loans, credit card etc) and long term (mortgage, life insurance, etc).
Also, there are two major approaches by which I'll address the subject:
(I) If you've obtain a loan few days,weeks or months ago and you're looking for a safe and scheduled way to pay it off.
(II) If you've obtain the loan, payed some, and the "Ransom" period is fast approaching.
FIRST PERSPECTIVE
I assumed that you have just taken the loan and you want a simple guide to repaying the loan.After taking a loan, do the following to get ahead of uncertainties.
°°°Get a good Job/run a high income margin business.
This is actually the first thing to run through your mind and consider before taking on any loan. In fact, the volume of the said loan must base on your monthly income either through active or passive income.
This also describes the amount of the loan and thewhat it'll be spent on.
So, ensure that you "cut your coat according to your size". Make sure your monthly income can save your monthly repayment schedule.
Don't be much bothered because after accessing your Job/business, the next thing to do is :
°°°Make Repayment Plan
A lot of people found themself in financial crisis simply because the failed to do their assignment.
When you want loan, it is your core responsibility to analyze how you will make repayment
To do this, you need to take a number of factors into consideration.
(1) Salary/Profits (including all sources of your income)
(2) Monthly expenses (such as taxes, rent, food, education, etc)
(3) Then filter the reault by doing these:
---Check out the unimportant expenses out of the list
---Finalize the balance
From the remaining balance, you can save and pay for your loan.
Example
Mr XYZ has a monthly income of $2,000 and after analysing
and filtering his monthly expenses, has $1,000 left.
He then requested for a loan with a yearly repayment of $6,000
The best bet is that Mr XYZ takes out the $1,000 balance, summing it for 12 months which makes $12,000.
With this, he can make a payback every month with $500 left to save.
SECOND PERSPECTIVE
“To climb out of debt, you've got to sacrifice much and if you are used to being a spender, then it is going to be unpleasant"Garrick Salto
(1) Ask for a raise at work
If you are looking to increase your income, analyzing your salary at your full-time job is a good place to start
To do this, you meed to do what is termed “evaluation" : Do you deserve it?
Before you decide to ask for more money,, ask yourself the following questions:
*** Do you meet and exceed the expectations of your job description?
***Are you known as a person who gets things done?
***Are you constantly increasing your knowledge of your industy?
***Would at least one person at work describe you a indispensable to the company?
***Do you deliver consistent or exceptional result?
If you answered “Yes" to many of these questions, you may be a good candidate for a pay raise.
Even if you feel confident about the work you do, asking for a raise can be intimidating. Read this to help the process go smoothly
2. Pick Up a Side Hustle
The idea of earning more money can amplify your effort towards attaching your debts.
Nearly everyone has a talent or skill they can monetize, whether it's babysitting, morning yards, cleaning houses or becoming a virtual assistant.
With site like Upwork and Fivver, nearly anyone can find some way to earn extra money on the side. That is taking any extra money you earn and using it to pay off loans right away.
3.. Create (and live with a bare-bones budget)
If you really want to pay down debt faster, you'll need to cut your expenses as much as you can.
According to Thesimpledollar.com, A bare-bones budget will look differently for everyone, but it should be devoid of any “extras" like going out to eat, cable television, or unnecessary spending .
While you're living on a strict budget, you should be able to pay considerably more toward your debts.
Remember, bare-bones b3udgets are only meant to be temporal. Once you're out of debt- or a lot closer to your goal, you can start adding discretinary spending back into your monthly plan.
4. Get a Seasonal, Part-time Job
With the holidays coming up, local retailers are on the lookout for flexible, seasonal workers who can keep their stores operational during the busy season. If you are willing and able, you could pick up one of these part-time jobs and earn some extra cash to use toward your debt.
5. Sell everything you don't need
If you're looking for a way to drum up some drum up some cash quickly, it might lay to take stock of your belongings first.
Most of us have stuff lying around that we rarely use and could live without if we really needed to. Why not sell your extra stuff and use the funds to pay down your debts?
Our thought and Recommendation
Before you take on a debt, you need to know that most debts can be divided into good or bad debts, depending on whether it is tax-deductible or not.
Robert Kiyosaki explains what good and bad debt is: the key is cash flow.
Cashflow is the sum of cash revenues and expenditure over a period of time. Cash flow might be in form of long term or short term, depending on the project.
Taking a loan/debt on something that has good cash flow is what will help you pay off your debt with less Hustle.
So, a good debt is a debt that generates income after obtaining.
It is important to mention ASSETS, as they are what takes money out of your pocket and in short or long term, brings money back as residual income. Assets include: Bond investment, real estate investment, etc.
Conversely, a liability is anything that takes away money out of your pocket, takes money to maintain it, and brings no return to your pocket. Examples: Mortgat5, Credit card, if not paid in full.
So, taking loan on liability is attributed to bad debt, which can make you go bankruptcy since there will not be return on investment to pay back the loan.
Note: student debt so could either be a good or bad debt. As a student, you shouldn't absolutely 100% guaranteed taht you will come out to graduate.
The person has to know, what are they going to study.
Robert Kiyosaki cited a case of his two friends taht are both medical doctors amd they came out of school with 500,000% student long debt.
So they paid up in 5 years because they are medical doctors, they had high paying Jobs. But there are lots of students who have no idea of what they are going to school for.
Now,
Should I go on a Debt?
Possibility: It depends. Only if you're spending it on assets and not liabilities.
I hope this piece help you...
Please share your thoughts through the comment box.
Thank you.
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