But, how can one save when you are in debt? This article provides answers to that question.
Some people are of the opinion that once you owe debts, some aspects of your life have to be on hold such as getting married, fulfilling life dreams, touring, or even travelling. This notion has stemmed from the perception that a debtor has to first tackle his/her debt before attempting to move on with their lives. However, I beg to differ! In fact, provided you are not severely in debt, you can still achieve many of your life goals such as travelling, while still managing your student loans, mortgages, car loans, and credit cards well. This article will delve into the myriad of techniques on how you can deal with your moderate, as well as, manageable debts so you can save for travel. Believe it or not, travelling out of your country might be a daunting financial task, especially if you have to fund the expenses yourself and you are not one with a solid financial background. So, the best available alternative is to save so you can travel. But, how can one save when you are in debt? This article provides answers to that question.
How much do you owe?
Scour your finances and bring all your debt to the table. Every single penny you owe has to be accounted for in this calculation, including those debts considered good debts such as mortgage. When you want to do this, you can employ the use of a computer software or a notepad if you cannot access a PC. Log every debt you owe along with their interest rate one after the other. By the time you are done, you will have a clear idea about how much you owe, and provided it is not a critically alarming one (one that outweighs all your sources of income), you will be able to find ways to deal with them. It is only when you have a clear print on what debts you owe, that one can be able to seek debt help. And in a scenario where you need to travel urgently, and you cannot afford to properly fund the details of your travel because of the debt you have at hand, these debt relieving schemes might come in handy.
Get IVAs
There are some debt management schemes out there that were designed for situations like these. If you need to save for travel, and you are in debt, then you need to find a way to deal with your debts so that they don’t alter your savings plan. If you want to keep channelling your income towards clearing off debts, then, there wouldn’t be enough to put towards regular savings, let alone saving for travel. Although, many of these schemes don’t cover every type of debt you owe, but they will still go a long way in relieving your debt burden. And you can start to divert the amount you would have paid into debt repayment to savings. If you are really interested in fulfilling your dreams of travelling, then, you need help with debt, so that you can have enough to save.
Face the debts
It wouldn’t be ideal for you to set out to travel when you’ve not cleared your financial obligations and hurdles. So, if you want to save for travel, then you need to face your debts while making financial arrangements to jet out of your country or city. You can do this by gradually paying your debts from the smallest to the largest or vice versa. There are some debt repayment techniques that can be adopted in this regard. For instance, if you have many debts scattered here and there, your best debt repayment strategy is debt consolidation. This will help you bring all your debts together and into one piece, so you only have one debt to think about at a time, and you also have an overall cut-down on your total interest rate, unlike when you had scattered interest rates to deal with. But, for someone who has large loans to contend with, debt refinancing might be the next best option. This strategy will help such person to fund their large debts, albeit, in a more reasonable manner in terms of putting money towards their debts. And for someone with both large and small debts, snowballing might be the ultimate solution. If you want to save to travel, and you fall into this category of owing both big and small debts, you may need to start snowballing your debts now before it starts to affect your travel savings plan. Debt snowballing will allow you to tackle your debts by first paying up the smaller ones, and gradually moving up to clear the bigger ones. Any of these techniques can be used, in the right circumstance, to handle your debt obligations while you are saving for travel.
