If you’ve accured credit card debt from your travels, you need a plan to repay these debts to avoid complicating matters. Many people are overwhelmed by debts and cannot choose the best method of repaying the debt, and this leads to late repayment, which in turn attracts other penalties including fines. So if you are ready to deal with your debts, you could apply one of the strategies discussed below to clear it as fast as possible.
List debts by interest rates
Not knowing your position in the repayment process is the biggest problem you could get yourself into when repaying debt. You need to understand the interest rates of every debt you have so you can come up with a repayment schedule that allows you to offset debts that seem to claim a lot of interest. Arrange your debts in a descending order from ones with the highest interest rates to those with the lowest. You will be in a position to focus on debts that are likely to cost you more if not repaid in time and this will eliminate much risk that comes with repossession of property or your assets being seized.
Keep an emergency saving fund
You need to understand that emergencies happen and don’t announce their arrival. Not having money to cater for emergencies is the ultimate recipe for disaster that you need to avoid. When confronted with debts, the worst you could do is to go for more credit to settle emergencies. To avoid extrapolating the challenges of your debts, always have a small amount kept somewhere to cater for emergencies and unforeseen situations. You need at least $1,000 and this will ensure you don’t go for money meant for the repayment of your loan to settle an emergency whenever it occurs.
During the repayment of debts, it is advisable to get rid of some of the things you don’t necessarily need to survive. Delayed gratification could help you create a larger pool of funds, which you can then channel to the repayment of your debts. To enjoy debt-free life later, you should sacrifice your luxuries today, otherwise, you might have to keep repaying debts for a longer period of time. Things you could do without include entertainment and some monthly subscriptions that don’t add much value to your life in a manner that you can forego them and still live well.
Work with debt settlement experts
Debt settlement experts like Nationwide Debt Direct could help you in the planning process and they always come up with better negotiations for interest rates. These experts could also work with debt collectors to allow you a better plan that will see you cater for your debts without having to delay repayment. This is the fastest and the most convenient option you have if others prove unreliable. While repaying the debt, you could also sell some items you don’t use or need to get more money so you can submit larger amounts for repayment.