10 easy ways to repay a loan
80 percent of working-age residents of Kazakhstan have debts in banks. Here are the easiest ways to help pay off your loans and get out of the debt pit.
1. Create a budget
To get rid of debts, you need to first understand how much you earn and what you spend money on. It is likely that you will learn something new from the generalized information and will be able to find expenses that are easy to do without.
There are applications that greatly simplify budget management. They can automatically read information about expenses and income on the card or scan receipts broken down by goods, so that you do not have to enter all this manually. For example:
1Money
Zen Money
CoinKeeper
2. Pay more than you need
Only early repayment of the loan can help to pay off the debt faster and save on interest payments. There is a small amount — send it to repay the loan.
3. Focus on paying off the most expensive loan
If you have several loans, then find the one with the highest rate. This can be a loan from an MFI or a credit card debt. Direct all available money to the early repayment of such a debt. And don't miss the mandatory monthly payments on other loans.
There are different strategies for paying off several loans. For example, Chantelle Bonneau, asset management advisor at Northwestern Mutual, suggests choosing between two: "snowball" and "avalanche".
In the first case, you need to try to pay off the smallest debt ahead of time, then move on to the next debt, which is smaller than the others, and so on. This method has two effects:
psychological — you will immediately see the result, the number of outstanding loans will decrease, and this will motivate you to continue;
economic — when paying off one of the debts, you will have a little more money to repay the next one ahead of time.
In the case of the" avalanche", early payments should be used to repay the most expensive loan. This will significantly save on overpayment.
4. Refuse a credit card
Often, debts are associated with credit cards. Their owners expect to borrow for a short period, but in the end they do not repay the loan within the grace period and then repay it at a high rate. Other extremes:
make only minimal payments on a credit card, so the owner pays off mostly one interest, and the amount of debt does not decrease, turning into an endless debt;
make payments and spend the deposited amount again.
Until you pay back all your debts, do not use credit cards, even if you receive bonuses for purchases.
5. Delete your credit card information from online stores
If you used a credit card to pay in online stores, taxi services and delivery, then go to the sites and delete it. This way there will be less temptation to buy something again and even more to get into a debt hole.
If you need to buy something, then use a debit card. You can find the map you need on our portal in the "Maps" section.
6. Buy at discounts
Some online stores are ready to give a discount only for subscribing to news. For example, Lamoda gives a promo code with a 10% discount.
Use special apps to find more discounts.
Use cashback cards and merchant loyalty programs.
7. Change your habits
Take the time to rethink your daily habits that you pay for. For example, do you really need expensive coffee from a coffee shop? Can you take food to work from home, and not buy it in a cafe? Maybe it's time to give up paying for TV that you don't watch? Ask yourself: what can you give up without sacrificing your lifestyle?
8. Look for new sources of income
Find out where and how you can get additional income. This can be consultations, assistance in household matters or additional employment on weekends.
If you don't have time to earn extra money, then at least find out about the possibility of getting tax deductions. Even a few thousand tenge matters when there are debts. You can Buy Buy Valid CC from the USA, Canada, UK, France, Germany, Spain, and many other countries.
9. Refinance loans
If you have several loans, then look for bank offers for refinancing. This way you can combine all the loans into one and pay at a lower rate. The main thing is that you do not have any delays on refinanced loans, otherwise the bank will not approve the application.
10. After paying off the debt, give up loans
When you pay back all your debts, feel how easy it is for you. It is important to fix this feeling and not return to loans again. Draw conclusions from the solved problem. In the future, try to give up credit cards and microloans.
