Here’s a quick way to solve instant loan/short term personal loan debt

Bad news for you- There is no quick way of solving instant loan/short term personal loan debt. It’s a long and excruciating process. The only quick way of solving instant loan/short term personal loan debt is by taking another short term personal loan to pay the existing debt. But it doesn’t solve the problem because you have another form of debt. This solution is as effective as putting a bandaid on a gun shot wound. For a gun shot wound to heal you need to have a qualified doctor lie you down in an operation theatre. The doctor will perform an intricate surgery for a long time and that will be your journey to heal. You would be issued some activities and certain restrictions to prevent the wound from further damage. The process of healing even after the surgery will take time, tender love, and care.

 

Something similar will happen when you will start your instant loan/short term personal loan debt-free journey. It will be long and will require several restrictions. But it is the only way possible. So if you want to be free of anxiety that instant loan/short term personal loan debt causes, and the instant loan/short term personal loan debt itself, follow our easy but comprehensive guide.

 

The method given below is the instant loan/short term personal loan debt snowball method. Debt snowball method is a method first brought by Dave Ramsay. The method has helped million recover from debt globally. Here is a simple breakdown of the entire process with examples.

 

Step 1- Make a list on paper or on excel of all the loans and credit card bills you have. For example- Laxmi has total three forms of debts, one instant loan worth Rs 30,000 from XY company, another Online loan worth Rs 5,000 from YZ company, and one credit card bill worth Rs 10,000.

 

Step 2- Note down your salary, and living expenses. If Laxmi earns Rs 30,000 and her living expenses are Rs 20,000 which includes only her rent, her electricity bills, water bills, groceries, wifi bill, phone bill. These are expenses she can’t avoid.

 

Step 3- Avoiding extra expenses and saving the money to pay your instant loan/short term personal loan debt is crucial, especially if you want to hasten the process. These extra expenses can be yout OTT platform subscriptions like netflix, amazon prime, hotstar, etc. suspending these expenses for a few month till you are debt free will do you wonders. Moreover, shopping sprees whether online and offline is a strict no. Comparing this to the gun shot analogy above, the same way a doctor would disagree with heavy exercise that may open up stitches, the same way it is recommended not to spend mindlessly. The money you save will go towards paying the debt off. So Laxmi will use Rs 10,000 to pay her loan.

 

Step 4- Pay the lowest amount of loan first while also paying the minimum each month. Laxmi has an EMI for each of her loan. Her lowest amount of loan is Rs 5,000 short term personal loan, and since it is well within her loan paying budget to pay it in one go. She pays the monthly EMI on each loan. She pays the instant loan EMI of Rs 3000 and Rs 2000 on her credit card bill.

 

Step 5- The next month she pays a credit card overdue bill worth Rs 8100 (rounding off the rate of interest she owes now) completely since it's the second-lowest amount of debt. She is left with Rs 1900 and she can use this amount to pay a part of the EMI due on the instant loan. The next month she can use the entirety of Rs 10,000 to pay her initial Rs 30,000 loan. Within the next or so month, she will be debt-free.

 

Thus, by being patient and following a proven strategy she was able to pay the debt off and live debt-free. By using this strategy you too can be debt free.