Paying Off Your Personal Loan Debt the Easy Way

The feeling of wallowing in debts that are spiraling out of control is an oppressive feeling that many people suffer from.

Dealing with debt in a responsible manner is imperative to extricating oneself from such a situation and although it can at times require more personal sacrifice than one might wish for, it’s often the only course of action available.

In addition to contacting a debt advisory agency – there’s no need to enter into a debt relief program if you don’t wish to – there are generally a number of options available to those struggling under the weight of a personal loan debt.

1. Establish a tight budget

If you’ve already created a budget with the aim of managing your personal loan debt you might find that you need to revise it if meeting your repayment commitments is proving problematic.

2. Prioritize your debts

This won’t be applicable to you if you’ve only one debt commitment to worry about, though if you have multiple debts you’ll need to prioritise them and address the most urgent of your outstanding debts first.

This doesn’t mean paying off the prioritised debt and forgetting about the others, but more so prioritising the most urgent over the less urgent by, for example, making extra or larger repayments when possible.

3. Avoid taking on new debt

Anyone struggling to meet their current outstanding debts and takes on new debt is making a serious faux pas and could very well find themselves in even more trouble than they’re currently in.

4. Take on a second job

If you’ve created a budget and debt payoff strategy and you feel that you’ll still find yourself short you might need to take on a second job.

This, however, doesn’t necessarily mean applying for ‘official employment’ – you could incur higher tax rates as a result – as it could simply involve looking for odd jobs and casual secondary sources of income.

5. Sell your old ‘stuff’

Chances are you have plenty of old ‘stuff’ lying around that you could sell and put towards your personal loan debt. This could help you to avoid making too many sacrifices or having to seek a secondary source of employment.

6. Pay more than the minimum

Whenever possible pay more than the minimum repayment amount. The more you repay, the lower your debt on the personal loans you applied for in Sydney will be, the less interest will consequently be applied to them and the sooner you’ll be out of debt.

This might entail making a few sacrifices – opting for a less extravagant smartphone plan, taking packed lunches to work and not going out as frequently – but it will help you to repay your personal loan debt much faster.

7. Renegotiate the terms

Only enquire about renegotiating the terms of your loan if you absolutely must because it can harm your credit rating if you opt to renegotiate the terms – repayment frequency, interest rate, etc. – and it’s therefore advisable to explore all the other possibilities before considering this option.

Most lenders will be willing to renegotiate the terms of a personal loan but to reiterate – explore all the other possibilities beforehand.

8. Seek assistance

Seeking assistance from a debt advisory agency hopefully won’t be necessary and it’s usually only those with multiple debts they’re trying to consolidate that pursue this option. However, if you’re really struggling to meet your personal loan debt commitments it’s certainly an option to consider.

Struggling with debt is no one’s idea of fun – take note of these handy tips to effectively manage and pay off your personal loan debt the easy way.

Author: Claudette Sibert is a writer for Get Approval, a finance company online that provides assistance to individuals and businesses in securing much needed emergency funds. They can help you get quick and easy loans in Sydney, Brisbane, Perth, Darwin and Canberra.