Understanding different methods of loan payment

in hive-175254 •  13 days ago 

Almost everyone is into one form of debt or the other, research has shown that virtually almost every American citizen has a debt to pay off, not everyone is comfortable talking about the word debt because they feel quite uneasy about it.

How do we even get to pay off these debt when we do not want to hear it or talk about it, I think it is rather difficult to get a solution to something we do not want to talk about, when someone reminds us of the debt we owe we tend to fight back and resolve to conflict because we feel it is none of the person’s business and some of us even feel that everyone is in one form of debt or the other so there is no issue about it.

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When you have different debts in different credit cards that have different interest rates, where do you even begin? There are two ways to handle a situation like this, you know it all boils down to finance and the way to go about it is either through: Increasing your level of income or reducing your expenses. Increasing your income means you have to add more work to the one you currently have or you either watch the things you spend on, in some cases it is even advisable that you do the both. You increase your income level and also reduce the amount spent.

There was a pattern I learnt from a friend which may work well in paying off our loan, that method is gathering all our loan into one spot that makes a complete giant loan, it means rather than having several loans split into different bank accounts, the loans will be placed into a single account with the interest rate as well but this will take extra strength and motivation to pay off.

The second pattern is to arrange your loans in order of their amount, begin to pay them off gradually until you come to the point where you have nothing left to pay.

These two methods has its application on different people according to their abilities, remember that what works for your friend may not work for you, when you have all of those loans combined as a giant loan, it may appear too huge for you and even when you keep paying it keeps appearing as if it is not getting reduced and once you cannot pay you just have to dance to the tune of the creditors.
The two methods described above are really great it just has to do with your personality and what works best for you the most, you need to just stick to a pattern of choosing what is good and convenient for you instead of following other people’s opinion.

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The truth is that having debt is not pretty for anyone, most people always do it to get out of the way but in the end they end up hanging on the loans. I think the best thing is to get organized and not access something we can't afford in the future, many people just waste money and don't think about what they can really afford.

Hello, @eni-ola
In order to pay the debts acquired, they must first be given due importance; it must be decided to take action at the right time before they get out of hand and one way to start is by re-planning expenses.