5 Ways To Fast Track Debt Payments

DebtDebt payments is one of the top priority of consumers nowadays and in a consumer-centric economy, it seems that debt will be a big part of household budget in the years to come. And to make matters worse, households are under attack from hackers just as what happened to JPMorgan Chase as reported by HuffingtonPost.com.  The bank admitted that personal details of about 76 million households were taken by hackers in what could be one of the biggest security leaks in the history.

As households try to deal with this blow to their personal details, debt payments still has to be made missing them will only spell trouble. Falling delinquent is never a good sign can can have adverse effects on the credit score. This also paves the way for going into default status which can trigger all sorts of collection practices hurling towards your contact details.

There are collection calls that can sometimes cross the line and contact you at home late at night or even call you in the office after you have specifically told them not to. They might even divulge your debt information with your relatives and other people. These are tactics that scrupulous collectors use to be able to illegally collect on the debt.

In order to prevent these collection calls from happening, you need to focus on your debt payments and try not to give collectors a reason to start making calls. Although making sure that you are able to meet your financial obligations is easier said than done. When you are faced with just enough funds to make the payments and live is a hard place to be in.

Tips in making debt payments

There are some people who are finding a lot of creative ways to make their debt payments. Every little thing helps to make sure that debts are paid back in the right amount on time every time.  Here are some of the ways other consumers are approaching their debt payments.

  • Demoting your salary. This is a strategy that can help you save some funds from your existing income. The way it works is that the consumer will revisit the monthly budget and see how much more they can live without.Then this amount is automatically deducted from the income every month making it seem like the salary decreased. The longer you keep at it, the more you will be able to save up funds to be used automatically for debt payments.
  • Keeping spare change. HuffingtonPost.com recently reported about a 69-year old guy named Rick Snydr from Florida was able to collect over the span of over ten years about $21,495 worth of spare change. This is the power of small change where putting them aside every time can lead to a big amount over time. Set up some mason jars int house and make it a habit of automatically putting in any loose change you might have in your pocket, car and even the couch. You will be surprised to find out how much you were able to save up for dent payments.
  • Incentivizing can help the goal. One way to break the monotony of earning and paying and earning and paying again is to spice up the process. If you are able to make the payments for a few months straight, you can set aside a certain amount for a movie date or a night out with friends. These can help you keep motivated in meeting your debt payment goals.
  • Forget about your bonus. This is not an absurd way to solve debt problems but it is one of the hardest to do. As soon as we get a performance bonus, our first instinct is to reward yourself because of the hard work you put in to get that bonus. Think of this process as being a component of decreasing your salary. As soon as you get your bonus, deposit it in your bank account and pay down your debts. The idea here is to do this as quickly as possible even before you get ideas on what clothes to buy or gadgets to tinker with.
  • Use any windfall money as debt payments. Try to see if people can gift you cash as presents on your birthday and holidays and use them to pay down your debt. You can also use any tax refunds the same way, debt payment. The idea here is any that unexpected money would be used to pay down outstanding debt and you have nothing to lose in the process because you did not really budget that money to begin with.

Benefits of frugal living

Lowering down expenses is a great tool in helping free up some funds in the monthly budget. Taking a frugal approach in life will always benefit your budget and even your appreciation of everyday things that you see. DailyFinance.com shares that there are instances where being frugal will defeat will not work for you like insurance or even saving up for retirement.

But there are some family activities that can be tweaked a little bit to inject more fun and form lasting memories with people close to you and at the same time lower down the cost. Here are some examples of how frugal living can help you with your debt payments and even inject a little fun in your household.

  • Eating out for special occasions. There are instances where you would want to gather family and friends to celebrate special times in your life.It can be a promotion or a business, or it can even be graduating from school or being accepted for a dream job. The easiest would be to book a restaurant and gather everyone for a great time. But if you are taking a frugal approach, you might want to make use of your backyard and cook food with your family. The children will all have something to do and you are also able to create memories at home with the people that matter.
  • Watching movies with friends or family.  Buying movie tickets and cinema food can quickly put a hole in your budget. One way to get around this is to do it at home. You can always go online and look for a movie that you want at a fraction of the cost. You can turn your living room into the coziest corner in the house by putting all the pillows you can find on the floor. You can make ice tea and popcorn that can feed the whole family even with guests over with lower expenses compared to buying them in the mall.
  • Looking for alternative vacation spots. Going to another country is a great way to spend a vacation. But if it means that you will come home and be faced with huge bills from the travel, the vacation is just putting you in a deep hole. This might even lead to desperation that can bring you face to face with debt relief options that does not make any sense. You can try and explore the country first and even the surrounding activity areas from your community. Or if your heart is really set for a trip, try to look for promos on airlines and the places where you are going to be able to save money.

Here is a video of how frugal living can save you money:

Debt payments will always be with consumers who are not able to manage their finances carefully. The best way to approach the payments is to understand your budget and try to look for areas where you can cut down on expenses and areas where you can increase your income.