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How to Beat Debt Successfully

Clearing your loans and borrowings can require a lot of effort and planning, especially if the size of your debt has been increasing steadily over time. Small loans can be paid off easily by making minor changes to your daily life, but serious cases need serious attention to pay off the loans. Here are some tips to help you get out of debt successfully.

Calculate your payables – The first step in paying back a loan is to sit down and work out the exact amount you owe. Do not ignore small bills, as small bills piled up over a long period of time can lead to a huge amount of loan. Ignoring your debts will only result in the creditors making claims on your property, which is the last thing you would want. So make a list of all your payables before you move on to the next step.

Plan your budget – Once you have a list of your payables, you then need to write down your income sources. Write down what you earn from your day job, and what you might be earning from a part-time job and any other benefits you might be getting. Next make a list of your monthly payments, such as rent, mortgage payments, insurance fee, utility bills and any others which you make on a regular basis. When you are done calculating your earnings and fixed expenses, then you will be left with the amount you have available to spend or save.

Use a household budget calculator to make an estimate of what you may be spending on items like grocery, clothing etc to get a realistic picture of your disposable income.

Discuss the problem with your partner – A lot of people hide their financial problems from their partners, but if you discuss your financial problems with your partner, you can come to a workable solution together to pay off the debts. Your partner can also give you advice on how you can pay off the debt and they might be willing to start a part-time job to help you with the payments.

Pay off the priority debts first – When you make a list of your debts, prioritize them and pay off the most urgent ones first. Usually, the most urgent ones are those loans which you have been delaying for a long period of time.

Don’t just pay the minimum repayments – Many people just pay the minimum payment on their credit cards, which is not good, as it takes longer to pay back loans in this way. Moreover, in such a case, you end up paying extra in terms of interest rates.

Try and avail subsidies and grants from creditors – Most people find it difficult to talk with their creditors about repayment difficulties, but talking with your creditor will be in your best interest. Lenders are experienced in helping customers who are facing financial difficulties, and the same applies to utility companies who have grants and subsidies available to help customers who are struggling with repayments.

Author Bio

Richard Jacobs



  1. Several deem credit cards as evil. I beg to differ. I used to have bad credit ratings myself until I decided to change my spending habits. I paid more than the minimum monthly. When I finally had my cards paid off I never spent more than could afford. Keeping my spending down to the bare minimum made it easier for me to pay off my balances each month. Now my credit rating has never been better.


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