In the UK, people have some debt; it may be credit card debt, Medical debt or student loan debt. It is the reason that people owed £2000 billion at the end of 2019, which is quite more as compare previous records.
Having such a substantial debt affects financial life directly. If you have some debt or even more than one, then paying them off would be great. But, it is a place where people give up because they don’t know how to manage multiple debts.
If you are at an extreme level and fail to deal with debt, then rely on borrowing options, like very bad credit loans no guarantor no broker or any other short-term funding options. In this, you may get enough money to pay for all the debts fast.
The above method is only for those who are suffering an excessive debt burden. But, if you have enough time, then you can take assistance with the “7-day debt challenge”.
7-Day Debt Challenge
It is a useful and effective method to clear the debt fast. You have to follow 7 steps that are mentioned below and have to perform each one every day.
There are some limitations that we have covered at the last of this blog. Let’s learn more about this challenge.
1-Day: Write down all the debts (Avalanche method)
If you have multiple debts, then write down on a paper or notepad. Do not forget to consider small ones because many times, these little debts create big problems.
Now, arrange them in decreasing order. Start with the top one and pay them off fast because, large amount means, more APR. But, in this you have to avoid new debts; otherwise, it can make the situation worse.
The best way to avoid further debts is to freeze the credit card.
2-Day: Boost the Monthly payment
Paying a large payment may affect your financial plan, but it can offer you long-term benefits. It would be great if you start some additional work to bear the household cost. You can start a freelancing or some part-time jobs to earn more.
In this way, you can move one step more towards the goal.
3-Day: Gather Money for emergency
It may seem corny to you because at the time of paying debt, saving money for a sudden situation could be a hectic task. But, an emergency fund can assist you in creating a further obligation.
Suppose you met with some unexpected cost, it could be anything, like medical or traveling cost. If you do not have any saved money, then you may rely on a credit card. It means you are inviting the debt unintentionally.
4-Day: Step back and control the desires
You may want to purchase something that you or your spouse likes. In such a scenario, controlling desires becomes a difficult task. While paying debt, you have to control for at least 7 days.
To control yearning, focus on one significant debt, and give it all you have. If you put today’s work tomorrow, then the debt burden will rise exponentially.
5-Day: Ask your lenders to reduce the payment
An unexpected cost may ruin your plan. In such cases, do not hesitate to take aid with some instant borrowing options, such as doorstep loans in the UK. It may introduce a small payment, but you can use it to repay the debt fast without disturbing the financial plan.
You can approach the lender and tell them about your situation. And they may reduce the interest rate or payment. Besides, they may provide you with flexible repayment timing.
6-Day: Sell unnecessary stuff
There must be the equipment that you may not require any more. You can sell them online or yard sale or nearby shops. The best part of it is that you can get the money without using a single penny.
In this way, you can put more money towards the debt and clear them fast.
7-Day: Reward yourself
Whenever you achieve something, you should celebrate with your friends or family. You do not have to throw a grand party, celebrate at a small level. Order some food that you like and share that with your family.
Following these 7 steps can help you to manage the debt fast. You may fail to deal with all of them, but you can at least manage ones with larger payment. You can only achieve it if you stick to the routine that we have shared.