Paying off debt is an obligation for anyone who is in debt. However, with high spending and mediocre salaries, paying debt repayments can be overwhelming. You must avoid paying for it because you can get your name on the Bank Indonesia blacklist. If this happens, in the future it will be difficult for you to apply for a loan.
Surely you don’t want to default on debt, right? Here are 10 ways to pay off debts quickly that you must follow:
1. Recap all your debts and prioritize paying high interest debt
Recalculate how much debt you have. Ideally, the expenditure items used to pay debts are no more than 30% of the monthly salary. If the portion of debt repayments is more than 30%, it means your financial condition is not healthy.
If you have nadakacheri cv multiple debts, sort your debt according to the highest interest rate to the lowest. Prioritize paying off debts with the highest interest rates.
2. Disburse additional funds from the assets you have
Look at the items and possessions that you have at home and are no longer in use. Selling or renting out these items can be an alternative way to get cash that can be used to repay debts.
Here is a list of examples of items that can be a source of money for you:
- Do you have a room or an unused room at home? Rent the room, you can get rent without working.
- Selling used items that are not used (TV, cabinets, used clothes that are still good, used books, furniture, laptops, handphone shoes, etc.)
- Rent your motorcycle or car
- If you have already bought plane tickets, hotel tickets, concert tickets, you should cancel it and get a refund.
3. Ask for help from relatives or friends who can be trusted
If you have relatives or close friends try to be honest, explain your situation and ask for their help. The funds you get can be used to pay off debt repayments, but remember that you will pay off the debt from your friend’s loan money.
4. Ask for professional help, debt management company
If you feel uncomfortable and do not want to bother your relatives or friends, you can ask for help from experienced parties that use the services of companies that provide debt management programs.
Make sure when you seek help from debt management services that have been registered with a credible bureau. Here are the benefits you get from debt management services:
- Helps you to negotiate with creditors to reduce interest, and debt repayment costs. In some cases, debt management can even reduce overall payments and freeze interest or penalty fees.
- Manage debts so that you can pay monthly debt installments according to your financial ability.
5. Conduct banking mediation for debt settlement
If you fail to find a solution with the lender, banking mediation by placing Bank Indonesia as a neutral mediator can be done.
As a neutral mediator, Bank Indonesia will motivate and direct both parties (creditors and debtors) to seek debt settlement, the decision to be taken is a win-win solution .
6. Use part of your savings to pay off debt repayments
If you have to be urged, you can use some of your savings to get rid of debt immediately. But remember you should not use all your savings to pay off debt because this savings you will need as an emergency fund,
7. Disburse the investment
One way to get money quickly is to withdraw the investment you have. Types of investments that you can liquidate include gold, deposits, mutual funds and others. After the debt is paid off, you can re-allocate income for investment.
8. Look for additional income
If your monthly salary from work is not enough to pay off debt, it means you have to look for additional income. You can sell skills to get extra money, such as:
- Teaching private lessons (teaching mathematics, English, swimming, music)
- Work part time as an online motorcycle taxi driver / taxi online
- Selling services as translators or writing articles
- Selling design and photography services
Besides selling services, you can also do business. At present to start a business does not require a large capital, for example:
- Selling clothes or items online
- If you are good at cooking, you can sell food or snacks for the office people
- Open a coffee shop and indomie business by opening a small coffee shop at home
- Selling credit, and others
9. Reduce spending budget
Changing the spending budget scheme will help you pay off debt more quickly. For example, if you have spent 50% – 70% of income on consumption and the rest is used to pay debts, you should now add a higher proportion of debt repayment to frugality and reduce consumption.
Here are examples of savings you can make:
- If your rental fees are expensive, move to a cheaper place
- Bring your own food supplies
- Save electricity, gasoline
- Save credit, you can find free wifi in public spaces
- Stop subscription packages such as TV, Netflix, Spotify
10. Ask your boss for a raise
If you have tried to save money, sell goods to find a side job but the funds to pay off debt is still lacking, you can negotiate with your boss to raise your salary.
In order for the salary increase to be approved, you can offer to add new responsibilities. This increased responsibility will certainly benefit the company so that your salary increase request will be considered.