We’re already at the second quarter of this year, how’s your debt repayment working out so far? You vowed to save more, spend less, and repay what you owe on new year’s, keep the discipline and your commitment to it going!

There’s no better time to pay down your debt than now. Are You going to wait til your financial issues spiral out of control before you take action? Whether it be bank loans, student loans, payday loans, or money borrowed from family members and friends, now is the time to repay the amount you owe and get your finances back on track.

Paying off debt will help save you money, a lot more if you pay it sooner and you get it under control. How to do it, you ask? Here are # steps to flush debt down the drain this year.

Recognize what debt means and plan your moves to eradicate it

The first step to fighting debt is to recognize how much you owe and know that it’s a fight you must conquer. A lot of people have money owed and loans to pay, but that doesn’t mean you should view it as a norm.

Getting a good grasp of what debt is and how much it will put your finances in a downward spiral if left unnoticed will stir your mind to the right notion in finding this circumstance a mission for you to solve. Get your finances straight; get rid of your debt.

Determine your money situation

The first thing you need to do is to establish your financial state: how much you earn, your sources of income, your fixed expenses, savings and emergency fund, and of course, your debt situation.

If you seem to notice you’re having too much fun with your extra money, make a few sacrifices—use those extra dollars to repay owed money. On the other hand, if you think you’re living paycheck to paycheck which deems impossible for you to repay old debt, maybe try selling some of your stuff you no longer use or get a second source of income, or even third if need be.

Know how to prioritize your budget. Paying off debts will make a breathing room and abundance for your emergency fund, savings fund, and other luxury expenses.

Pay more than the minimum

One of the steps you’d want to do is to practice the habit of paying more than the monthly minimum required. Think about it, the minimum payment is what the banks and lenders expect you to pay. The interest rate rises the longer it takes you to repay the amount, which means a definite win to the lenders.

Ask for a lower interest rate

We know, interest rates are huge burden and doesn’t help at all in getting out of debt fast. Interest rates and other fees are what hurt us the most. But did you know that you can contact your bank and/or lender and request for a lower interest rate?

Ask and request politely, what’s the worst thing that could happen? If you have a steady income and good credit score, it’s most likely your lender will approve you for at least a .25% interest rate reduction. There’s no harm in asking, so take that chance.

Consult with a credit counselor

If you’re really having a difficult time sorting out your finances, maybe it’s time to seek out professional help. Don’t be ashamed of getting help; would you rather stay with debt or swallow your pride and consult with someone who can help you get out of it?

These advisors will help you craft a plan. Prioritize, organize, and find resources that will help you rise from your financial situation. Be careful with scammers, though. Make sure that you’re reaching out to credible and reliable experts.

Plan for your future

By the time you finally get your debt under control, your fight against debt is now to avoid it from getting you into a similar ordeal again.

Determine your long-term goals. Do you plan on renting your own apartment in five years? Do you plan on traveling out of the country once a year? Save more for your retirement?

Once you know what these goals are, proceed to curate a monthly budget that will help you reach these goals. If you need to open a savings account for each one, do so. If you need to cut down on some expenses, do so. If you want to live without debt to think about, condition your mind and wallet to avoid it.

What ways and steps have helped you conquer your debt? Share your journey with us and help a stranger out!

About Chie Suarez

Chie Suarez has spent time figuring out ways on saving money and stepping away from her go-to retail stores. She then became a writer for Speedy Money which offers hassle-free loans services.