There is no doubt that a higher number of Nigerians are experiencing financial fears and heartache due to unrelenting inflation that has plagued the economy, a situation which has continued to inflict untold hardships on the citizenry especially the common folk.
The situation has seen so many individuals finding it difficult to meet their financial obligations such that they are apprehensive of reaching their financial set goals owing to persistent rise in the prices of commodities.
And that is why it is impossible for any right thinking individual that detest financial bondage to rely on a single income stream in this hostile economy.
Besides, if you really desire to stay afloat in these dire hard times, it is important you try as much as possible to think outside the box of survival as depending on that meager monthly take-home which inflation has devalued will put you and your family under perpetual financial burden.
Lack of financial literacy particularly in the area of handling finances, will always make some people to enjoy wallowing in debt when the need arises without taking into cognizance, the negative effect of it in their lives.
It is true that obtaining debt for a good project is not awful but when you make it a habit and not thinking of creative ways to up your earnings to be free from its clutches, then it is not a better way of survival.
Do you know that with so many organisations going under the drain due to the high cost of operations, level of unemployment will increase the more and survival for those affected especially if they did not get financial relieve from their organizations have no choice but to resort to borrowing just to keep afloat?.
That is why, you need to try as much as possible to be prudent and plan your purchases appropriately.
But, when you are extravagant and do not care about your financial future, there is no way, you will not experience financial heartache especially when you have so many unsettled debts.
It is crucial to try as much as possible to manage your debts to reduce your financial pains and make headway in your financial life.
The under listed tips will assist you to overcome financial heartache:
Make The Most Of Your Money
You really need a spending plan if you actually desire to get out of debt; it is very imperative to make the most out of your money and one way to achieve is to create or build a budget because it is the key to any proper financial planning particularly if you are paying off debt.
Besides, a budget also helps you to spend any extra money you have left after expenses are covered such that you can use it to pay off your debt faster.
Creating a budget will enable you to track your expenses such that you are able to know what goes out and comes in. You can also constantly review your budget if it is not working the way you want it.
Shun Impulse Purchases
You must be prudent in your spending to get out of debt. That is why it is imperative to shun every form of impulse buying for appropriate financial tracking and accountability.
Ensure you prepare a list of everything you value in life and then list all your expenses from last month. If the lists do not match, get your spending in line with your values to clear your debts.
If your expenses do not tally with your list or budget, it means that you have created a space for overspending and if that occurs, getting out of debts and increasing your savings may be difficult.
Review Your Spending Habit
It will do you more good if you try as much as possible to drop your expensive lifestyle particularly if you have a debt to settle. Irrespective of your social class, if you make debt your lifestyle, you cannot stand tall financially as you will always live in perpetual fear.
This is more so if you do not know how to make enough money to service it. But reviewing your spending habits might be the best thing to do especially if you are constantly in debt.
There is logic in the small ways you are spending money daily as this would help you to evaluate whether those purchases are worth it, so as to come up with ways to limit them or get rid of them
Have A Payment Plan
There is need to have a record of all your debts and this must include the names of your creditors and the amount you owe.
To manage your debt profile properly, there is need to have a payment plan, which could be monthly or weekly and work out the mode of payment with their due dates. You can also use your credit report to verify the debts on your list.
Having all the debts in front of you will permit you to see the bigger picture and stay conscious of your complete debt profile.
Do not just create your list and disregard it. Ensure you always refer to your debts list from time to time, especially as you pay bills.
Pay Your Bills Promptly
Paying your bills early will help you to easily pay off your debts as late payments make it difficult to settle your debts since you will have to pay a late fee for every payment you overlook. If you miss two payments in a row, your interest rate and finance charges will certainly increase.
If you use an almanac system on your computer or smart phone, enter your payments there and set an alert to remind you several days before your payment is appropriate. But if you miss a payment, do not wait until the next due date before you pay; instead send it as soon as you remember to avoid paying extra fee.
Pay The Least Amount
You can get started by paying the smallest amount of your debts especially if you cannot afford to pay anything.
Mind you, making the minimum payment does not help you make real progress in paying off your debt but instead, it keeps your account in good standing, which evades late charges when you miss payments.
Always Discuss With Your Creditors
Ensure you are always in touch with your creditors to avoid suspicion.
Whether you admit it or not, creditors are human beings too, and they do have a heart of sympathy once they are aware that you are the committed type or one with integrity.
But, if you observe that you are in a situation where fulfilling your financial obligation towards them may not be possible at the agreed date or period, make sure you inform them.
Be creative
Try to ponder on any skill you are good at that can really fetch you additional money to your monthly earnings.
It will help you a great deal in settling your debts especially if your current take-home cannot adequately cover your necessities after paying your debts.
But, if taking a second job sounds draining, you can do it for a short period of time to earn enough for a few extra payments towards your debts.