Well done. If you are reading this you’ve taken the first brave and responsible step towards financial freedom. If you haven’t, take this as your sign to start the process today.
Once you enter the debt review process the financial breathing space you experience might become addictive. You may find yourself chasing ways to attain your ‘debt-free’ status sooner.
So, let’s find out how you can sprint right through debt review.
Is it possible to speed up the debt review process?
There’s good news, yes, there are ways to speed up your debt review process.
Some of the factors that influence the length of your debt review process:
- The amount of debt that you have – the more debt you have, the longer the process will last.
- Your monthly affordability.
- How committed you are to repaying your debt.
Your monthly affordability and your commitment to repaying your debt are factors that can dramatically decrease the length of your debt review process, and the great news is that you have some control over these factors.
Let’s explore some practical and realistic ways to pay your debt off faster
Your decision to enter the debt review process was bold and courageous. It is going to require some further restraint to get out of the debt review process faster. In most cases, getting to the end of the review process faster can be as simple as paying extra, either as one lump sum or by paying a little extra every month.
Here is a list of practical ways to help you get out of debt faster.
Adjust your budget
The registered debt counsellor who was assigned to negotiate with your creditors would have painted a clear and honest picture of your financial situation. This knowledge can empower you to make better budget decisions. Reassess your priorities, only spend money on the things you need and find gaps for opportunities to save. Use the extra cash towards paying off your debt faster.
Simple suggestions could be finding a cheaper insurance provider or medical aid plan or maybe trading in your car for a less expensive model.
Use your bonus or increase wisely
The urge to spend your bonus or the extra monthly amount from your increase will be hard to fight off. But you must remember that using it as an additional payment will help you achieve your goal of financial freedom much sooner.
Look for extra sources of income
We all have hidden talents that we do not often speak of. Think of simple yet effective ways to transform your hobbies or talents into income-generating opportunities.
If you’re feeling particularly untalented, start with a simple way to make more money.
Use this money to make additional payments to end your debt review process sooner.
Take out the trash
One man’s trash is another man’s treasure. Have a look around and identify items you can do without and then sell them. There are various online platforms available to you to showcase your unwanted items. You could be mere clicks away from securing your next additional instalment.
Hop onto the minimalistic trend
Stop mindless spending from hurting your finances. Try to be more conscious about your money and what you are spending it on. The items you buy must bring you a sense of joy and add value to your life.
When you do need to shop, think quality and not quantity, and always consider whether what you’re buying is a want or a need. If it’s just a want, then you might be able to pass on the unnecessary purchase.
Extra tip: Practice gratitude! Remember to place value on the things you already own, practicing gratitude may even cut your urge to overspend on things you do not need.
How a strategic approach to paying off debt can pay off
One of the most beneficial and effective reasons for paying off your debt early is that you can reduce the amount of interest paid over time.
Remember that paying off your debt is one of the best things you can do for your future self.
You may not realise it, but starting the debt review process is your first step in the strategic plan to get rid of your debt. Step two of the plan is to stick to the process and commit to paying off your debt as soon as possible.
Achieving the ultimate goal: Financial Freedom
The ultimate goal is to be financially strong and debt-free so that you can start focussing on saving.
If you haven’t already, take the first step and start your debt review process now, knowing that you are in control of how long the process lasts. The debt review process should not be seen as a prison sentence but rather the first step in a strategic plan towards your financial liberation!
