If you want to pay back your debts, whether you have just the one loan or many, it can be rather daunting knowing where to start. It is a good idea to get yourself organised with some sort of plan so that you know what you are going to do. Firstly you need to start by finding out how much you owe. If you have multiple loans, then you will need to see which you pay off first. Look at how much each one is and what the costs are. It makes financial sense to pay off the most expensive first, that is the one that you are paying most interest and fees on, however, it can be more satisfying to pay off the smaller ones first so that you can see them disappearing. Decide which strategy you think will work the best for you.
Once you know where you are starting then you need to start to pay the loan off. The best start is to use any savings that you might have. This may seem unwise as you may be saving up for something or want the money to fall back on should you get short. However, savings earn a lot less interest than loans and so it is sensible to use them to pay off the money that you owe. However, on doing this, you may still have money left to repay.
It is worth looking at all of the money that you pay out each month and see whether you can reduce that. You may be able to switch utility suppliers, insurance companies or banks without noticing a big lifestyle change and save some money which you can put towards paying off your debts. You may also want to cut down your spending in other areas that may have more of an impact. It is worth questioning every purchase you make to see whether it is necessary and whether you can get the item(s) for less and save money. This is a habit that it can be easy to get into and you will soon find it much easier to cut down on what you are paying out.
It is also wise to see whether there are any ways that you can increase you income. Even small increases can help you to get that debt paid off more quickly. This could be done by asking for a pay rise, working some extra hours in your job or even changing to a better paid job. You could also consider taking on a second job or making some money in your spare time. It can be hard to do these things, you may not have the time or you may feel unmotivated.
It is therefore worth making sure that you remind yourself as to why you are working so hard. Why you are cutting down your spending and earning more. Imagine how good it will feel when you have cleared your debts and no longer have to worry about how you are going to pay them back. Focus on your goal when you feel that you are getting annoyed with scrimping and working hard and remember how exciting it will be when you manage to reach your goal. It can be worth writing down your goal, perhaps even with a date when you want to achieve it so that you can focus on it. Put it somewhere that you will see it each day so that you have a constant reminder of what you are looking to achieve that day. It can make a big difference and help you to get it paid off even sooner.