Smart Ways to Pay of Your debts Before 30

Let’s face it - no one enjoys being financially burdened by loans and debts that take up so much of our paychecks each month. Every time you take up a new loan, you are faced with more debts to pay, so less flexibility on your available cash, and more stress.

Below, we share with you some tips to help you pay off your loans before you hit 30.

Start Taking Up Side Gigs

The extra cash will always help, instead of idling away your spare time you can make more money instead. Work a second job on the weekends and do not be afraid to start small.

As you gain more experience working your side gigs - writing, painting, or even manual work like waitressing - you can start earning more.

Use a 50/30/20 Budget

Need some tips on allocating your budget? Try allocating 50% of your paycheck to necessities such as rent, food, and fuel. 30% goes into the things you might want to buy, while another 20% goes into paying off your loans.



This budgeting method is the right way for you to have a relatively flexible budget as opposed to setting a fixed amount of cash for yourself each day.

Pay Extra When You Can

If you are one of the lucky few whose monthly loan repayments are all affordable, why not chip in a little extra now and then?

The more you pay off each month, the less interest you pay, and the faster you will finish your loan repayments. Having some freelance jobs, as mentioned above, will help you to make extra payments now and then.

Focus on Smaller Loans First

If your loans start to seem a little daunting, you can implement the snowball method. This method describes how you can pay the minimum balance on all your debts, but pay extra for the smallest loan that you have.

When you have completely paid off the smallest loan, you move on to the second smallest one. Eventually, you will find yourself settling bigger and bigger debts, and you will be highly motivated to continue.

Utilize Cashback Programs

Some shopping platforms and banks offer cashback programs for your expenditure. Utilize these where you can, and shop only when these programs are provided so that you are maximizing each dollar you make.

You can also hop on to loyalty reward programs in your nearby supermarket or grocery store. The more you spend on your daily needs, the more you will be rewarded for it.

Consider Loan Consolidation

It can be challenging to manage financing a car loan, a mortgage and other debts at the same time. If you have a good credit score, you may be eligible for debt consolidation.

Compare several debt consolidation services and choose the one with the lowest interest rate so that you will only have to pay one debt instead of multiple payments.

Review Your Finances

Take a look at how you have been spending and review your financial goals, both short-term or long-term.

When you have a clearer idea of what you are striving for, it is easier to budget out expenditure for the coming months while you pay off other debts.