Debts are so oppressive especially when you can not show what you did with the loan you took. But one thing you need to know is that settling debts is a step towards financial freedom.
Below are the tips to help you clear your debts easily despite the tight budget;
Make a list of all debts
Make a list of those you owe and be honest with yourself. As you list them plan on how to pay them starting with those with higher interest rates and those that are urgent.
Pay off debts before saving
It is important to save even if you have a lot of debts. You can reduce your monthly savings and pay your debtors with the rest. But before you plan on saving, pay all the debts first then you can save
Identify the cause of the debt
Look at your financial behavior. This means you may be spending more than you earn. Once you identify the habit that leads you into debt, you will be in a position to clear up the debts in a reliable and efficient way.
Get financial advice
You may need advice from experts on how you can service your loan. An experienced debt advisor will treat your information with confidence.
Watch your daily spending
Watch out your daily spending and see that thing that takes a lot of money. Any expenses that lead you to debts, you need to do away with it or reduce the amount used in it. If you are not sure of it, you can keep the receipts for reference.
Budget
Come up with a budget if you know you are extravagant. Use only what you have planned to use. When writing down a budget, include savings because it is an integral part of your budget.
Talk to those you owe money
Talk to those people you owe money that you remember about the debt. Let them know what is happening in your life and what you are doing to ensure you continue servicing the loan.
Sell your loan
You can sell your loan to other people on lower interest rates. One can also find a bank whose interest is lower than the creditors