Use Payment Bursts To Get Out Of Debt

creative-debt-repayment

Many people think that to get out of debt you have to go through a long ordeal. Many people think of debt as a completely negative process. They often think of debt payment as much fun as going to the dentist for a root canal. While this may be true for some people, it doesn’t have to be!

The truth, of the matter is that, anything that happens to your life is an opportunity for you to choose whether you are the conqueror or the conquered. Debt can be a very unpleasant thing, but if you play your game right, you can be a victor instead of being a victim of your circumstances. Which would you rather be? Yeah, I thought so.

There is a method of getting out of debt substantially quicker than if you do it your own way. It happens using what are called bursts of payments. Use these steps to help you get out of debt quickly using creative payment bursts.

Most prefer to pay a small amount

This is human nature, if we are face with a painful situation we’d rather make sure that we drip feed the pain, in other words we break it up into small parts so we can handle it more easily. In other words, this is your classic installment payment plan so this is human nature. You break up big debt into small amounts.

The key here is to make sure that there are no early payment penalties so if you decide to do a creative burst from time to time or a balloon payment it will be counted properly, it won’t be held against you negatively. Make sure that you get it into those right kinds of agreements with your credit card company or with the company giving you a loan.

Save a little for a big burst

This is the key part of creative payment burst. Save a little bit every month so that lets say, at month six you have this huge amount of money that you can then use as a burst payment. This works to dramatically reduce your overall debt loan. Talk about a boost of motivation. Seeing your debt get slashed will give you a big boost. Seeing one of your debts completely vanish is going to give you the energy to continue to save money so you can blast your next debt out of the park.

The key here is to have the discipline to put away money every month to save up for that burst of action. It takes practice but you will get better the more you do it. Just try it once, you’ll love it.

Forced saving pushes you to be more disciplined

Forced savings work at a very simple principle: you don’t spend what you don’t see. When you keep a forced saving regimen for several months, you are really training yourself to come up with burst payments that will knockout your debt.

It’s also good news when you don’t have that much money left over every month because if it really forces you to recalculate your budget in your money manager software as to what you really need.

The good news is you don’t really need that much. If you want you can save a quiet a bit of money because you really don’t need that much. You just have to accept it. You have to lower your expectations so you can get the money to get rid of your debt.

About The Author

Edwin is a marketer, social media influencer and head writer here at Frugal Wiz. He manages a large network of high quality finance blogs and social media accounts. You can connect with him via email here.

Leave a Comment

Your email address will not be published. Required fields are marked *