News agency Reuters reports a fresh crop of economic problems emerging in the U.S. that reverse the earlier recovery from the coronavirus-induced recession. While the economy may change within the early months of the new year because of the high possibility that a successful vaccine will become available, the best thing that you can do right now is to try to resolve your own finances. Two simple but effective ways to turn things around in your life is to pay off your credit card debt faster and work your way up at your current job.
Pay off Your Credit Card Debt Faster
Paying off your credit card debt can be a long drawn-out process because most of your payments will only service the high interest rates on your credit card invoices. Worse still, if you miss payments or pay late, the credit card provider will tack on fines and fees in your next invoice.
One way to pay off your debts faster is to consider debt consolidation, a proven debt restructuring method in which you borrow money offered at a low-interest rate to pay off all your high-interest rate credit cards.
A financing company, Taft Financial, explains that since you’ll be paying less interest on your loan than you did previously, more of your money will now go toward reducing the principal of the money you borrowed. As a result, you will pay off everything faster.
An additional advantage of securing a consolidated loan is that you will no longer be inundated with a variety of bills showing up like unwelcome visitors throughout the month, each calling your attention to a different amount and interest rate. This reduction in the frequency of bills showing up in your mail will bring you a sense of welcome relief. It will also reduce the time you spend each month sorting through how much you owe and to whom. Paying a single bill, repaying the consolidated loan, will also make it easier to pay on time every month—which, of course, will reduce your risk of incurring any more fines for late payments.
Work Your Way up at Your Job
If you are fortunate enough to have a job in these troublesome times, now may be a good time to double down on working your way up the organization that has hired you to contribute to building their enterprise.
While there are many ways to earn more, one of the most direct and straightforward ways, one with the lowest risk of rejection and failure, is to earn more from your present employer. Instead of struggling to learn a new skill, or struggling to start your own business from scratch, or struggling to acclimate yourself to a new job, mine the diamonds in your own backyard. A higher position in your company could help you earn a great salary.
During one of his lectures, motivational speaker Jim Rohn, shared a life-changing anecdote about how he discovered more rewarding work in a conversation with his mentor, Earl Shoaf. Describing his financial struggles as a store clerk to Shoaf, Rohn explained that he earned low wages because that’s all the company would pay him. Shoaff then asked him if that’s all the company paid. Rohn confessed that the company paid some people far more. As he answered the question, he recognized Shoaff had asked him a trick question. His employers paid others in the company more because they provided more value to the organization. This insight into the relationship between value and income transformed Rohn’s life. He realized it’s more emotionally satisfying and financially rewarding to be a giver than a taker.
Take Rohn’s insight to heart. At your job, think about more ways you can add value to your work. Eventually, your company will recognize your efforts and you’ll earn one promotion after another.
To conclude, if you have high debt, now would be a good time to make it more manageable; and if you still have a job, now would be a good time to position yourself for a promotion.