*Learn to cut expenses and pay off a $20000 loan in a year. Gain financial literacy, earn more, and manage your debt. Control your money and get rid of debt. *

Money can solve almost all problems today. Facing some emergencies people used to ask services like NorthnLoans for a payday loan, cover their needs, repay debt in 2 weeks and forget about it. But what to do if your debt is not $1000, but much larger? Loans do affect every aspect of our lives: financial, social, and personal. For the loan not to become a dead-weight, you need to come up with ways to repay it. See how to repay a loan in one year.

Make a Budget

Budget is an essential thing for living a financially healthy life. If you don’t have a budget, you’re already in trouble. Don’t think it’s complicated. There are hundreds of online apps to assist with your monthly budgeting.

Getting Rid of Cards and Paying in Cash

Cold, hard cash, as people call it, helps taking responsibility for your expenses. Paying in cash only will help you use credit card less. In the long run, it’ll also help to have a good credit card balance ratio and a better credit score. BTW, you can even apply for short term loans while you repay the big one.

Switch to Joined Accounts

If you have a spouse who’s helping you pay off the debt, consolidate your bank accounts and credit card debts. This makes it easier to control money and track down payments for loans.
Sharing one car also saves a huge amount of money.
Don’t shut down your credit card, as it can damage your credit score.

Eliminate Unnecessary Purchases

You’ll be better off without expensive coffee at cafes and can cancel our Netflix subscription for the time being. Once you cut back on some things, you’ll realize how much money you’ve been wasting.
Buying used things or selling your things for extra cash are also lucrative ways to cover debt faster.

Earn More

There are tons of ways to make extra cash: from doing simple errands for people to getting paid for photos. Babysitting or dog-sitting jobs are always in high demand.
If you value you, then it’s time to go to your employer and renegotiate your salary.

Rethink Housing

There’s a commonly known rule of thumb that states then you should spend at most 30% of your income on housing. If you pay more, it is time to rethink accommodation. Possible ways are: finding a cheaper place, inviting a roommate, and moving in with your parents. Some people are even moving to another area with cheaper essentials.

Consider a Different Kind of Transportation

Buying a subway car or a bus pass will effectively eliminate costs on transportation. If you can’t live without your car, inquire about special programs for employees that partly cover gas and car insurance expenses.

Try Refinancing your Loans

Use the Earnest platform to find you a lower-interest loan. This program uses algorithms that analyze your spending habits, investment, and career prospects to deliver you a low-interest lender.
It is also helpful to open a balance transfer card. These cards often have a 0% interest period. You can transfer the balance from the high-interest card that you own to a new one. Then pay the balance of the card within the free period. Remember to pay off the whole balance before the 0% period comes to an end.

Celebrate Accomplishments

Psychologically speaking, celebrating financial milestones, like paying off the car loan or the student loan, motivates people to do more on their way to financial goals. Also, putting money aside gives much more pleasure than finding bargains and discounts.

Kristy Epperson’s Story

Kristy Epperson, an ordinary American, managed to buy a house while repaying a $20000 student and car owing. Homeownership motivated Kristy to study her debts and earnings. She decided to gain financial literacy not to end up in debtor’s prison.
First off, she took a second job, which brought her up to $300 a month. She started tracking her expenses on a simple spreadsheet. She also started an Instagram page where she shared her financial achievements.

She got rid of her credit cards. She explained that when using credit cards she didn’t realize the liability. She had spent impulsively and recklessly. Having to live off cash only made her think over the expenses. She managed to get a grip on her budget.
Dividing her money between her needs helped Kristy to track expenses she didn’t allow herself to splurge and didn’t use the credit card if there were no money left for dining out, for instance. Her friends were plenty helpful and accompanied her free hiking walks in town or buying treats for game nights. Eventually, when Kristy paid off her debt within a year, she managed to start an emergency fund and she’s not stopping on that.