Having a little bit of debt can be stressful. Having multiple debts can feel overwhelming. But don’t worry — debt is something many people successfully mange. It doesn’t need to be something that takes over your life. By making a plan, you can keep up your payments and reduce stress.
Use this very method to get started:
Step 1: List out all your debts from smallest to largest. This includes loans from anywhere and for anything — school fees, business loans, outstanding bills, etc. List everything!
Step 2: Make or find a monthly calendar. Write on the calendar when each loan payment is due.
Step 3: Start by paying off any debts that have daily or growing fees to avoid further debt.
Step 4: Pay off your loan with the soonest due date to avoid late fees. If you cannot pay off the loan in full, make a partial payment to reduce late fees.
Step 5: Pay off the next due loan, and then the following.
By putting in place a system, you’ll feel a sense of progress. Studies show that tackling one loan at a time is easier than trying to pay off everything all at once. Small accomplishments help keep you motivated. If you need future loans, try to take only one loan at a time to make your loans easier to manage. You got this!
TIP: If you have old loans that you have not repaid at all and you want to clear your CRB status, pay in full because partial payments do not positively impact your CRB.