Are you struggling to pay off debt?
If so, you’re not alone. In 2014, South Africans ranked as the biggest borrowers in the world.
The good news is that, as a whole, things are slowly looking up for South Africans in terms of getting debt under control. Still, the vast majority are still struggling with some sort of household debt.
If you’re looking for easy ways to pay off your debt, you’ve come to the right place. In this post, we’ll reveal 4 creative ways to become debt-free.
1. Change Your Spending Habits
A sure way to help you pay off debt is to avoid getting more of it.
How can you accomplish this? Well, some bills are unavoidable–your mortgage or rent, car payment, and utility bills. But what about the things that truly aren’t necessary?
Do you really need to buy a latte from the coffee shop every morning? Could you bring your lunch to work instead of eating out? Could you cut back on alcohol consumption or quit smoking cigarettes?
Even seemingly little changes can add up to big savings over time!
2. Sell Unnecessary Items
Chances are you’ve got money lying around your house in the form of unnecessary or unwanted items.
Remember that old birthday gift from your cousin you never used? How about those wedding presents collecting dust in the closet? Do you really need to keep the old clothes or bicycles your kids long since outgrew?
Once you start searching, you’ll be amazed at what you find you can part with. Take photos of the items and post them for sale online, or hold a yard sale over the weekend.
Then take the cash from the items you sell and put it towards paying off debt.
3. Use Bonuses Wisely
When we get a lump sum of money, it’s so tempting to treat ourselves to a nice vacation or a trip to the shopping mall.
Don’t do it! If you receive a holiday bonus, an unexpected raise, or a family inheritance, don’t go out and blow it.
Instead, put that money to work for you. Start by paying off your loans with the highest interest rates first. It’s more important to improve your financial standing than to own the latest designer shoes.
4. Borrow from Family or Friends
This one can be tricky, but it’s a viable option if you’ve got friends or family members who are more financially stable than you are.
If you’ve fallen onto hard times, your family and friends are likely to be more sympathetic than a bank or creditor. Explain your situation and ask if they can float you a loan until you get back on your feet.
In this situation, it’s still best to treat the loan like you would any other. Write up an agreement with a repayment schedule and any interest rate. Then sign it and stick to it–otherwise, you risk damaging the relationship!
Still Need Help to Pay off Debt?
Of course, for some of us, it takes more than a few creative ideas to fully pay off debt.
Luckily, there are short-term loan options that can help you weather any financial storm.
Click here to learn more about LittleLoans and how our payday loans can help you and your family.
Or, if you’re ready, you can go ahead and fill out a loan application today.