Some people on thes streetsare highly indebted. In fact people jokingly say “If you owe nobody you are not a man.” Wellt that may be a perception, buts surelyit is a wrong one that should not be accepted.
That is why it is very important that you take steps to free yourself of debt. According to the director general, Lagos Chamber of Commerce and Industry, Muda Yusuf, it is a matter of self
control.
“Most times it is lack of self-discipline that leads people to incur debt for consumption,” he said in an interview, adding, “As far as consumption spending is concerned, one has to limit it within the scope of ones earning power. There are also quite a lot of individuals that
buy impulsively.” Yusuf however advises, “If it is for purpose of investment and there is proper risk analysis of the
investment, an individual can borrow and if it works out well, the proceeds of the investment can help pay off the
debt which makes economic
sense,” he noted.
So, for those that would love to pay down their debt or get rid of it altogether, but
they aren’t quite sure of the best way to do it, here are some suggestions to get you started:
- Pay more than the minimum Make sure that you always
pay more than your minimum payments. If you only make your minimum payments each month, it can take forever to pay off your balance. If you want to pay off your balance quickly, pay as much extra as you can afford. -
Spend less than you plan to spend
Most of us have wishes and wants that are bigger than our pay cheques. You might have heard the great saying
that, “You can have almost anything you want; you just can’t afford everything you
want.” Many people get into debt and stay in debt because they tend to buy what they want, when they want. If you
can be satisfied with less than you would ideally want, even temporarily, you can use the money you save to pay down
your debt. -
Pay off your most expensive debts first One of the smartest strategies for getting out of debt is to make minimum payments on all of your debts except for one. Choose the one debt that is charging you the most interest and focus all of your extra payments on paying that one off first.
Culled From: Personal Finance Insider with additional input from the director general of Lagos Chamber Of Commerce
and industry, Mr Musa Yusuf
