4 Budget Tips To Pay Off Your Debt Faster

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Have you ever felt overloaded with so many loan and credit card bills that you had no idea where to start? In this article, guest blogger Michelle Blackmore advises you to make a budget and explains how it can help you pay off your debt faster.

There are various ways to avoid falling deep in the caverns of debt, and budgeting is one of best debt management tools. Budgeting works as a daily work log, where you can make entries based on your income and expenses. It also helps you stay financially fit and well versed.

Budgeting – The debt management tool

Budgeting makes life easier. If you stay true to yourself, and follow a budget plan strictly, you will pay back your debt faster. Whether you are using budgeting tools or the help of a financial planner, in both cases you should:

1. List down your total income

2. List all of the expenses, static and variable

3. Make a list of the debts to be paid off

4. List down some extra savings for yourself

Proper debt management

In order to manage your debts properly and take control of your finances, I would advise you to:

1. Define your objective: What gives you peace of mind? Is it paying off debt or saving money? In the first case, you should prioritize paying down the debts as fast as possible. In the second case, you may have to be partial towards savings. In general, balancing both is important.

2. List all of your debts and prioritize the payments to be made: Once you have listed down all of your debts, you should prioritize the ones that need to be paid off immediately. I do the same, and that too every month. I list down the payments to be made in a month as per their priority and then tick off one by one as those get paid off.

3. Determine by when you would like to become debt free: Determine the time within which you would like to have all your bills paid off. Device a debt payoff plan accordingly. If required, you may have to lower your borrowing limit. For that, you may also be required to cut back on your expenses.


About the author: Michelle Blackmore is a financial writer who has insightful knowledge on the contemporary financial issues and the economic state that the nation is going through. Presently she writes financial articles for websites, communities and blogs . 

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