Mon Dec 26 2022 07:53:07 GMT+0000 (Coordinated Universal Time) - QikTruck Media
Debt can easily become a trap in modern society. Often the only easy way to obtain a loan of any sort is to take out something with a difficult repayment plan with potentially high rates, making repaying debt difficult. South Africa is no different and with the cost of living being so high on an individual level, debts can become quickly unmanageable.
Having a repayment plan that works for you might seem daunting, but fortunately, there are a few simple steps to creating one and ensuring you don't get caught in a never-ending debt trap. We'll go through each of those steps in this article and by the end, you'll be ready to take your debt repayment plan into action.
The first step to creating a debt repayment plan is to figure out who you owe money to and what kind of loan it is. For each loan, you will need the lender's name, mailing address and loan balance. This is essential information when starting your repayment plan.
Write down the total amount of debt you owe and make sure to be as specific and accurate as possible, writing down the amount owed to each creditor and the type of loan it is. If a loan is quite old, double check the current balance and make sure it's still correct.
The next step when creating a debt repayment plan is to look over your budget. You need to be honest with yourself when it comes to your expenses and make sure you have an accurate idea of what you can afford to put towards paying down your debt.
Look for areas where you can cut back like spending on eating out, going to the movies, or buying new clothes. All of these things will add up over time and the money can be put towards repaying your debt. It might not seem like much at first, but the money will add up quickly.
You might also want to look for ways to make extra money. This could be done through taking on extra work or selling things you no longer need. This is an ideal way to boost the amount you can put towards debt repayment each month.
Once you have an idea of how much you can afford to put towards your debt each month, it's time to create your repayment plan. You'll want to start by writing down all of the debts you owe and their minimum payment amount. You can use this information to create a calendar or a chart of when each payment is due.
The next step is to prioritize your debts. Start by tackling the debt with the highest interest rate first. This will ensure that you are quickly freeing yourself up from the most expensive debt and allows you to more efficiently pay off the rest.
For example, if you have two loans with the same balance but 400% interest on one of them, you would want to start with that loan first. That way, you are reducing the amount of interest you pay overall.
Once you've prioritized your debts, you can start to use the extra money from your budget and any extra work you've done to pay off the debt quicker. This will help you get out of debt even faster.
The biggest mistake a lot of people make when trying to pay off debt is to borrow more money. This might seem like a good idea, but if you can't pay it off right away, you will soon find yourself in even more debt than you started with.
If you want to get out of debt and stay out of debt, the best thing you can do is to avoid taking on more loans or credit cards. Adding more debt to your already existing debt load will make it more difficult to pay it off and will just put you deeper in the hole.
When you're trying to pay off debt, sometimes the extra push you need is services. QikTruck is an on-demand truck and driver hire service in South Africa and it's here to help make your journey easier. With QikTruck, you can make deliveries with ease, transport goods for business or purchases for personal use and much more.
With QikTruck, you can save time and money since you're not paying for an outright purchase price. Instead, you simply pay per hour of service and you can customize the service to fit your needs. QikTruck also offers safe and secure payments and a customer service team that will guide you through the process.
Whether you're transporting goods for business or clearing out your home for debt repayment, QikTruck is here to help.
Creating a debt repayment plan doesn't have to be a daunting task. If you take the time to go through the steps outlined above and remain disciplined throughout the process, you can easily escape from the debt trap and start rebuilding your financial life.
In addition to the steps here, we recommend utilizing services like QikTruck to help you save time and money as you work to pay back your debt. QikTruck can provide transportation services for a fraction of the cost that it would take to buy a truck – so why not give it a try today?