Make Money While Paying Off Debt
There are many ways to save money. You can use green options to replace grid-based energy and utilities, you can make some extra money online through various agencies when things are tight, and you can even use crowdfunding in order to overcome expenses or difficult financial situations.
When it comes to loans of the student, business, and personal variety, the payback will be specifically regimented, often in the manner of paying a certain amount every month. The reason lenders can afford to do this is because of something called “interest”. Basically, interest is an added fee to your existing loan.
Such loans can be sustained for decades at a time, though you should be aware that the initial cost of the loan may double over years. The best solution is to pay as much into a debt as possible, and as regularly as you can. Ideally, you’ll avoid debt altogether, but in today’s society that is next to impossible. So plan ahead.
As DebtSettlement.co points out, a good sample business debt settlement agreement would incorporate principles which are strategic; those paying a debt would ideally: “Set aside funds each month during debt settlement negotiation to pay…creditors once your debt settlement company successfully negotiates a lower balance.”
The problem is that it isn’t always possible to directly set aside funds based on your current monthly spending. The key is cutting the fat, polishing away the dross, and diminishing your unnecessary expenditures on a regular basis. Don’t buy any new clothes for a while. Don’t finance anything else. Stop buying $5 coffees!
In a 30-day month, a $5 coffee every day comes out to $150 in a month. How much is that in a year? $1,800. Now imagine spending the same amount on fast food. By eliminating these two indulgences, you can cut out up to $3,600 in costs. If you start buying coffee at the grocery store and cooking at home, it will be realistic to expect to save up to $3,000 annually.
Now: if you’ve already got a loan payment, and you’re able to hit it every month anyway, such cost consolidation can additionally increase your pay-back on the loan. If you were paying $400 a month on a $10.000 loan, by cutting out expensive coffee, you can now pay $550 every month.
When All Else Fails
But sometimes individuals are in a situation where they’ve already consolidated their expenses and are still having trouble paying their regular bills. In such situations, it may make sense to contact relief organizations and institute a crowdfund. There are countless groups who are dedicated to helping people help themselves.
Or you might look into green energy. A $300 solar energy system including a power inverter, a surge controller and a battery can produce around 100 Watts per hour. You can charge your smartphone and laptops for free, thus minimizing your utility bill.
Using techniques like this will allow you to increase your payments on a monthly basis by consolidating expenditures. This means that you can still save money with shrewdness. All you’ve got to do is budget strategically, and use all the means you have at your disposal. If you’re able to pull in $2,000 a month—which is achievable even at a low-end job—you can succeed.
Search for the least-expensive housing solutions you can find. It’s definitely possible to live sustainably for around $500 a month or less, single or not. If you also spend $500 on food, gasoline and unexpected expenses, you will have additional $1,000 that can be split between paying back the loan and savings. It just requires forethought and discipline to achieve.
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