How to pay off huge loans quickly

Discussion in 'Self Improvement' started by Hard gainer, Aug 6, 2021.

  1. Hard gainer

    Hard gainer Fapstronaut

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    Hi,

    Can someone suggest a tip to pay off huge loans quickly. I currently have 3 loans and I am struggling to pay off those. It will be help full if I get suggestions.

    Also if someone have succeeded payed of their huge loans quickly with any creative techniques, kindly post the same. It will be help full for many.
     
  2. fredisthebes

    fredisthebes Fapstronaut

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    Really depends what kind of loans they are, what your circumstances are and whether your income is reliable, etc.

    If there is any chance of it at all, best thing you can do is arrange for a loan from a family member which you can pay back interest free. Draw up plans and agree how much you will pay back each month, be completely transparent about what you can afford and how long it will take and set up a direct debit to repay the money every time immediately you get paid.

    Other than that, just learn how to budget, set up a foolproof system so that you cant overspend even if you wanted to, and be prepared to live very frugally for a while...
     
  3. SickSicko

    SickSicko Fapstronaut

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    Eat noodles/pasta, no drinking, no going out, cut every single expense that is not literally vital for survival.
    No shortcuts, own your mistakes, pay the price.
     
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  4. Trobone

    Trobone Fapstronaut

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    It really depends on what you mean by huge and what types of loans and their interest rates.

    But really - make a budget, stick to it. Extra income is for investing or debt payments.
     
  5. Hard gainer

    Hard gainer Fapstronaut

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    I have one long term loan - housing loan. EMI for this loan will consume 59 percent of monthly income even though intrest rate is low. Apart from that I have few credit cards with high intrest rates. Sum of Total out standing in credit cards is low, but due to high intrest rate it keep on growing even though I pay huge amount every month. Also 1 personal loan, but principle is small, and am about to close it. it will end in next 2 months. Totaly more than 90 percent of my monthly income will be gone before 5 th of every month for these loans. I have manage whole month with rest of money.
    I have planed to borrow some money from relative with less or no interest and pay off these credit cards first. That is the first step I have planed. If I get rid of this credit cards I think it will help me a lot.
     
  6. Hard gainer

    Hard gainer Fapstronaut

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    Yes I have quit drinking for nearly a year. Am trying to quit smoking.
    And trying live as frugal as possible. It is really hard. I have to find a job with more pay also.
     
  7. Hard gainer

    Hard gainer Fapstronaut

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    Yes I really want to invest. But left with no money to invest now. Trying to work out a plan to tackle things
     
  8. Hard gainer

    Hard gainer Fapstronaut

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    Sure mate. Will check out what is a snow ball effect and will give it a try
     
  9. Hard gainer

    Hard gainer Fapstronaut

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    Thanks mate. Ya I have planed to close of those credit cards first. Which have a ridiculously high rate of interest
     
  10. gordie

    gordie Fapstronaut

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    There's a psychological component to the debt snowball that I feel like you just can't outsmart. It's funny, I used to write articles on money management, and the debt snowball is incredibly good. Some people claim Dave Ramsey is too harsh in his approach, but he's not for everybody. Some people need to learn how to control their drinking, others need Alcoholics Anonymous. Dave is the AA of debt.

    Don't run any calculations on interest and principle to try to "out-math" your debt-- like everyone has said, start with the smallest debts first regardless of interest. As you close them out, your debt will feel more manageable even if you've only marginally decreased the total amount. 5 $100 debts spread around 6 credit cards just feels more stressful than 1 $600 debt, and that's important.

    Each close out feels like a victory, instead of viewing the debt as one singular burden.

    Plus, there's something odd about money management that I read in a book on financial wisdom a long time ago: the more you get your finances under control, the more you experience financial "luck." I can attest to this, that when I am being responsible and careful with my money and keeping debt under control, more opportunities seem to fall out of the sky for better financial opportunities.

    TL;DR: Debt snowball, and start with the smallest principle debt and work up.
     
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  11. Hard gainer

    Hard gainer Fapstronaut

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    I do felt it. Having big single debt, even though worries me, it feels easy And tidy to even think about it.
    Instead having multiple small debts scattered around feels like choas and messy bachelor room scattered with thrash.
    Thanks for advice mate. All words from you people gives me feel of confidence and feel of not being alone.
     
  12. fredisthebes

    fredisthebes Fapstronaut

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    Great plan. Remember to promise a clear date to repay your relative's debts (even if it is a long time in the future) and repay it on time. You might need them again one day :)

    And, in case you haven't done it already, tear up those credit cards and don't use them again until you are debt free (or, at least, free of credit card debt).

    Good luck!
     
  13. Get your hands on a copy of Total Money Makeover by Dave Ramsey from your local library. He's got lots of good advice in there.
     
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  14. Hard gainer

    Hard gainer Fapstronaut

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    Sure mate. Also am going to get rid of those credit cards and will keep only one for any emergency purpose. That to I will not keep that in my wallet so that I will not be able to reach out easily.
     
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  15. Hard gainer

    Hard gainer Fapstronaut

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    Sure mate. Thank you . Will get and read that book
     
  16. The best way to pay off a large loan is to set up an automatic payment that is the most you can reasonably afford, then learn to live within your existing income while being sure to fully pay off any credit cards monthly. Also, avoid buying anything on credit, instead save up the cash first.
     

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