When people start making a random expenditure, they often come into the shackles of debt. Especially new credit card users often purchase things randomly, and that leads to huge credit card debt. To pay those debts, people are forced to make certain lifestyle changes. They cut down on their comforts and give up their luxuries. Well, it is possible to pay back your debts without sacrificing your luxury to a large extent. In this blog we are discussing how to eliminate debts without sacrificing happiness and comfort.
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Why do we accumulate debt?
To avoid getting into the debt trap, it is important to answer this question first. Many people, right at the beginning of the professional career, go for a lot of expenses. Well, this is somewhat expected, since when people get a job and start earning money, they want to fulfill some of their long-cherished wishes.
Now, you have to pay those debts otherwise your credit score would go down.
Why not to avoid getting into debt trap !
Making expenses is fine, but it has to be remembered that financial planning right from the beginning stage is important. Financial planning is not necessarily saving money for the future. It involves systematic expenses so that you do not have to face a short time financial crunch.
Related article: How to control spending too much money
How to Eliminate Debts without Sacrificing Happiness and Comfort
OK, let’s accept the current ground reality that you have accumulated some debts and you would like to pay back without sacrificing happiness and comfort in your life.
Well, you can still pay back your debts without sacrificing your luxury to a large extent. Getting finance related data in the right order is the most important thing for the individuals. In the following section, some effective debt repayment planning tips are being discussed for the convenience of different people.
We believe that Marriage And Money Planning Are The Basics Of A Happy Life
1. Make Every Penny Count
Even when you are expending a dollar, you should be careful. Make sure that you get value for the expenses that you are doing. Make sure that you are expensing money that fetches you exactly what you wanted.
The point is you do not have to leave your luxury, but you should be careful about making no additional expenses when buying your luxury items.
You need to make investments into value for money products as well as services. Unless you get the value for the money you spend, you cannot take control over your luxury expenses. Value for money expenses shall fetch you luxury, along with cost-effectiveness.
2. Plan Expenses for Different Purposes
If you give a close look at your monthly expenses, you shall understand that a few expenses are done on a monthly basis. You cannot escape these expenses.
For example, your monthly grocery shopping is such a type of expense. Many people have to live on regular medicines. This can also be counted as a regular expense. Planning these expenses is easier, as you know that you have to make such expenses every month. You can easily plan your grocery expenses.
Good planning can lower down the expense to a large extent. Firstly, you need to set a fixed amount for making expenses for the grocery. You should not make additional expenses.
- You need to check grocery in your household, and some items may not need to be purchased as they are already in stock.
- You can check the free items that are available with various grocery brands. Some retailers offer freebies if you shop till a fixed amount of money.
- Instead of going for brands, you can try newly launched brands for products as this may help you to save money.
Now, apart from this planned monthly expense, we have to make a lot of expenses in different situations. Life is full of surprises and uncertainty. With so many surprises, it becomes difficult to plan the financial expenses properly.
To plan things in the right manner, a few simple tricks are needed to be followed. The first and foremost tip is to set a fixed budget for random monthly expenses. You should not make any expenses over this monthly budget unless there is an emergency. You have to keep your luxury expenses limited to fixed budget only. This would not detach you from luxury, but it will surely save money for you.
3. Work from Home as Part Timer
In order to fulfill your luxury wishes despite not failing to pay your credit card debt, you need to find additional scope for income. You can go for different kinds of income opportunities.
For instance, your regular job may have some incentives if you fulfill certain target or you give overtime to your job.
If not, you need to go for the part-time side income. The best way to earn these days is to earn online.
Many online working and earning opportunities are there, featuring terrific convenience for the people of the present era. For example, you can work as a freelancer developer, content writer, etc. You can spend time in advertising products or services for a company, and you shall get a good income from that. Steady income is assured through Google’s Adsense program.
4. Check for Cash Back Offers
The most exciting thing is that you can get much cash back offers these days by using various cell phone applications. If you get signed up to the mobile wallets, you shall get excellent cash back offers. This cashback offers will help you to pay more without putting pressure on your monthly budget.
Cash back can be earned through various referral programs. You can ask people to join your referral programs so that you can earn money instantly. To receive cash back, you can also follow some conditions that have been provided by the cell phone apps.
Overall, cash back will help you to make more purchases without making extra expenses.
5. Simple Debt Consolidation Rules
To consolidate your credit card bills, you can use one single payment through another credit card. If you manage to get zero interest credit card for consolidating other bills, it will be the best thing that you can do. For debt consolidation, you need to have a zero interest credit card, and for that, you need to apply for the card. Once all due bills are paid, now you have only one uniform bill to pay. It becomes easier to track your expenses and also it will help you to pay the money with ease.
Towards the end
Following above mentioned golden rules of debt consolidation will help you immensely to deal with your monthly expenses. You can still enjoy a few luxuries without hampering your debt payment plans. Good planning is always the key, and thus you need to plan things pin the proper way.
This article is written by Isabella Rossellini
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