Solutions for your Debt

I posted Causes for Heavy Debt, now I'm going to post a dog eating a cat.

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"Helps me human!"

Oh, and solutions for your debt.

1) Create your Budget and STRICTLY follow it - "Well, duh. This is so freaking obvious." It might be but some people still lack the sense that seems common to you, imaginary-character-that-I-just-made-up-in-my-head. Don't go all spending your money the moment your pay day comes. Manage your money first so you won't have any problems in the future. If you don't, there's a high chance you will borrow money from a friend or get a loan because of lack of management. May I suggest having a jar system.

2) Simplify Your Lifestyle - spend below your needs. If you can't save some money anymore, try eliminating those expenses that are considered wants. Yes, daily visitations to J. Co. or Starbucks is wants. If you have needs that affect your savings, better find a cheaper alternative. You can survive without buying a sack of Ganador rice. 

3) Pay Off High Interest Rates - if you have multiple loans and debts, I suggest you pay off the ones that take a high interest charge like credit card debt. The reason is because high interest debts (or any interests for that matter) compound over time which reallllllllllllyyyyyy is a pain in the butt if it increases.

4) Don't Pay the Minimum - Speaking of credit card debt (or any other debt with interest for that matter,) don't pay the minimum, pay as high as you can. You're just going to prolong your debt if you don't which, again, compounds. This avoids the compounding interest that is working against you.

5) Stop Bringing Big Cash - imagine yourself walking in SM and you have Php 10,000 fresh from your ATM. You saw something that catches your eyes and you have the tendency to buy that thing. You will start reasoning with yourself that "it's okay I can earn the money again." So you bought it. Then, you came across your favorite restaurant. That little voice in your head then tells you to "go eat, you have lots of cash anyway." What you are not realizing is that you just disrupted your budget (if you have a budget) and bought things that you didn't plan to buy. If you have a small amount of money in your pocket, you would think twice in buying stuff.