How to start repaying your debt- 5 Practical Steps!
Focus on paying those you owe (Subordinates/employees):- Firstly settle those that are under you to save you from embarrassment and lawsuits e.g. If you own a business and for some reason the business is going through a season of adversity, for example, a downward spiral in sales, affecting your revenue and you have to owe your creditors, employees or subordinates. You have to focus on paying this category of people first because they also have families and loved ones who depend on their income for sustenance and livelihood. This also applies to clergymen and pastors, since the organization is non-profit, they could occasionally go through times where they might not have enough to pay their staff members, the situation should be explained to them, and ask them for their understanding of the current situation and as soon as the funds are back up, this category of people should be priority.
Focus on paying family members or relatives you owe: – For there not to be bad blood, animosity or resentment of any sort between you and family members you need to also put them as a priority if you borrowed money from them. you don’t want money to be the cause of discord between you and family members; they should be in line to paying back debts you owe them. You should value your relationship with them and make sure the relationship is in good standing as long as it depends on you. The family is usually where we have the most conflict and you don’t want money to come between you and your relatives. Put them as a priority. This shows them you value their relationship with you and their feelings. It also shows gratefulness and integrity on your part.
Focus on paying those that are vulnerable: – In this category we are looking at the elderly, widows, orphans, poor or struggling in the society, sick, maybe having a terminal illness or a deformity, they should be on your priority list to pay back if you owe them, you want to focus on paying them back because owing people in this category or underestimating the need to pay them back can bring ill will to yourself.
Pay off high interest yielding debts-: The reason to make this a priority is because the high interest yielding debts keeps growing for as long as you owe the debt and if you don’t put it as priority, it will outgrow the debt in itself and then it will not stop, and this will put you under constant pressure. You are going to be sold-out to the debt and become a slave to it.
Negotiate to reduce the percentage of interest on the loan/debt: – One sure way to bring down your debt is to negotiate with the people you owe, it could be banks or credit card companies to bring down the percentage APR on the loan or debt. when you call them, ask to see if they can bring down the percentage from let’s say 6.0% to 4.5%, most credit card companies and financial institutions are willing to bring down the percentage, it does not hurt to call and negotiate with them. You might not get it to what you want but they will definitely work on getting it down for you.