Best Strategy To Prioritise And Clear Off Your Debts BST Credit
 

Singapore will be raising her GST from 7% to 9% in two stages between 2023 and 2024. What does this mean for us Singaporeans?

Dining out is going to be a lot more expensive, buying food will burn a bigger hole in your wallet, and saving money will become even tougher.

If you’re like most Singaporeans, your head is constantly swirling with thoughts of all the different things you need to do. You have bills to pay, a job to go to, and a family to take care of. How on earth are you supposed to find time to focus on getting out of debt?

To clear off your debts before the interest rate swallows you whole, you can combine all of your debts into one loan. 

Monthly loan repayment will be clearer and overall interest will be reduced as well. This blog post by BST Credit, the best financial institution in Jurong, will discuss the best strategy for prioritising and clearing off your debts. So read on and get started!

 

How Do You Start Paying Off Debt?

How To Be Debt Free BST Credit

The first thing you need to do is take a deep breath and assess your situation. What debts do you have? How much can you afford to pay each month? Once you have a clear understanding of your financial situation, you can develop a plan.

If you have multiple debts, it’s important to prioritise them. Start by making a list of all your debts, from the smallest to the largest.

If you’re really busy and want to clear your debt fast, drop us an enquiry and let BST Credit help you! Getting a quote from us is free and easy!

Next, you have two alternatives:

Debt Avalanche Method

This strategy entails paying off the debt with the highest interest rate first:

  • If you can afford to, make larger payments than the minimum amount due. This will help you get out of debt more quickly.
  • If you can’t afford to make large payments, don’t worry. Just make sure you’re making the minimum payments on all your debts and doing everything to stay on top of them.

Debt Snowball Method

The debt snowball method is a strategy where you first pay off the debt with the smallest balance, regardless of the interest rate. The idea behind this is that it will give you a quick win and some much-needed motivation to keep going.

To use this method, list your debts from smallest to largest and make payments on the smallest debt first.

Again, if you can afford to make more than the minimum payments, go for it! If not, focus on making the minimum payments and doing what you can to stay on top of your debts.

Whichever method you choose, stick with it and don’t give up! It might take some time, but eventually, you’ll be debt-free. And that’s a goal worth striving for.

Clear up your debt with our help!

 

Debt Avalanche vs. Debt Snowball Method: Which One Is Best?

The debt snowball method is often touted as a simple and effective way to pay off debt.

One of the biggest advantages of the debt snowball method is that it can help to motivate you to keep paying off your debt. Seeing fast progress on one debt can give you the motivation you need to keep going. Additionally, by starting with the smallest debt, you can get a quick win and feel a sense of accomplishment.

But the debt snowball method isn’t perfect.

Its primary disadvantage is that it may not save you as much money in interest payments in the long run.

If you have a large amount of debt, it’s essential to consider both methods and decide which one is right for you. If you need the motivation to keep going, the debt snowball method may be a good choice. However, if saving money is your top priority, the debt avalanche method may be better.

Here’s why: It can save you money on interest payments. By paying off the debt with the highest interest rate first, you can reduce the interest you accrue over time.

Additionally, the debt avalanche method can help you get out of debt more quickly. By focusing on the debt with the highest interest rate, you can make progress and pay off your debt sooner.

The debt avalanche method isn’t perfect, either.

The main disadvantage is that it may require you to make tough decisions. If you have a lot of debt, you may need to put all your extra money towards paying it off. This can be difficult, but it’s important to remember that the goal is to get out of debt quickly.

 

Where Do You Find The Money To Pay Your Debt?

How To Clear My Debt Fast BST Credit

If you’re struggling to make ends meet, you can do a few things to free up some extra cash.

1. Consider getting a debt consolidation plan 

Combining all of your debts into one helps you lower the overall interest rate.

What happens is that your new financial institution will help you repay all of your existing debt. Next, all you have to do is make one monthly repayment to your new financial institution!

This method is clearer and reduces and complexity of your loans. Find out more about BST Credit, the best financial institution in Jurong and how we can help you!

2. Get a part-time job or take on some freelance work

This can help you boost your income and give you the extra money you need to get out of debt. Work is flexible and you can work on your own time.

3. Cut back on your expenses

Take a close look at your budget and see where you can make some adjustments. You may be surprised how much money you can save by making minor changes to your spending habits.

Those are tough choices.

Either you work more, or you consume less. Of course, you could always open an investment portfolio or rent a room in your home for passive income.

But those aren’t sure income sources.

BST Credit Can Help With Your Debt

For a safer option, contact us! BST Credit is here to help you no matter the situation.

Speak with us today to find out what we can offer you immediately!

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