Working adults may often find themselves struggling with debt. If you find yourself feeling this way, here’s how you can turn your finances around this year.
Explore opportunities at work
If you think there’s a chance for you to increase your salary, speak to your boss or the Human Resources Department. Even a slight increase in your monthly income can help close the gap between your assets and liabilities.
Have a budget and spend within your means
Temper your inclination to overspend by keeping in mind that monthly credit card interest rates can go as high as 3.5% in the Philippines. Be consistent in setting aside money to pay off bills first before spending large sums of money on other things.
Pay off the most expensive debt first
It’s obvious why you should do this. Smaller debt is easier to pay off, while larger debt means a higher interest rate charge. In addition to this, strive to pay more than the minimum sum monthly in order to cover the interests incurred during the month.
Save, save, save.
It also helps to save a small amount of money while clearing your debt. Try allocating a sum equivalent to 5% of your monthly debt payments as savings into a separate bank account. BDO Unibank offers a wide range of services to suit your needs so you don’t miss out earning interest on savings even if you’re clearing debt.
Get started on a new phase of life, with peace of mind and freedom from debt today by applying these tips.