How to save money when you are under a debt

By | November 22, 2017

How to save money: Are you getting nightmares about not being able to clear off your personal credit card bills and outstanding loans? Well, if you are in such a trouble then it is probably the right time to fasten your belts and try controlling the financial mess by gearing yourself up for these simple and easy lifestyle changes:

 

Here are 5 ways that show you How to Save Money

 

  1. Take a pledge – ‘No more debts!’

Paying through credit cards can soon become a momentary happiness habit, and one may often end up piling up huge heaps of outstanding loans, only to get frustrated towards the end of the month. You must accept that, if today you are under a debt, it’s largely because of your inessential shopping and spending habits. Half of the worries are waived off once you take a pledge of not spending a single penny on not so important stuff. Also, do remember that you must set up an emergency fund (to meet any circumstantial needs like medical bills and others) before you take a debt and get ready to face the financial hassle.

 

  1. Opt for cheaper rates

Why must you pay more, when you can repay back loans at lower interest rates?Some banks like Kotak Mahindra and State Bank of India offer comparatively lower interest rate credit cards than ICICI Bank or Bank of Baroda, especially those with smaller credit limits. Some banks will also allow you to go for lower interest rates in the future if they scrutinize and come to the conclusion that you don’t lag in making full payments.

 

  1. Prepare a list and clear off big debts first

Sit down and make a list of how much you owe and how much you need to pay back within the given time frame. You can also use financial calculators in the app store for this purpose. Keep the big debts on top of your list as this is the one that must be prioritized and cleared off at first. Remember, clearing off big debts faster, increases your credit score. Prioritize your outstanding debts according to your budget. Do remember that it is crucial that if your debt repayments stand out to be more than 30% of your monthly income, you are potentially entering a danger zone.

 

  1. Lower down your daily expenses

A penny saved is a penny earned – the phrase stands drastically true when you are in a financial crisis or a debt. For your daily groceries and paying off your utility bills, try using online modes like Paytm, MobiKwik, Grofers, Bigbasket, and others. These merchants provide you with regular and exceptional offers and coupons that you wouldn’t ever find in your local grocery store, wherein you end up paying for kinds of stuff at the maximum retail price. However, you must buy or shop online only when you need and not just to grab an on-going offer.

 

  1. Earn extra

Now stop worrying about how to save money. There is lot more to do than your unsatisfactory salary based job. You can always involve yourself in a part-time job during your free hours for some extra income. There are many ways to which you can earn money online. Click here to read more. You can always earn extra income with a safe mutual fund and fixed deposit options – click here to know more.

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