BECOME DEBT-FREE IN 1 YEAR

Becoming Debt-Free in one year.  Is it even possible and if yes how do I do it in one year?
You, like many others, may be aiming to save more money and Becoming Debt-Free in one Year. However, debt eradication takes time, especially if you're trying to become Debt-Free on a tight budget.

Creating a Plan
Creating a debt reduction strategy or plan will assist your chances of success, especially if you set a date for completion.

How do I go about doing this?
Start with 12 months. How much progress can you accomplish in the coming year? Here are a few basic initiatives and concepts that you may implement right away to help you reduce debt and, ideally, achieve financial freedom.

Curb your expenditure and save more money on your current income.
Begin by scrutinizing your monthly spending.
Draft a budget from your bank statements and establish ways of saving money and curb your monthly expenses.
You can even consider utilising the banking app to establish your expenditure.
Utilize these programs to look for ways to minimize expenditure and devote more money to debt repayment.

How will this help me in becoming Debt-Free in one year?
Small savings in spending can quickly add up.

For example, if you can trim R200 from your normal monthly budget, you will have R2,400 to pay extra toward your debts after 12 months.

Make Debt Payments Automatic
• Intelligent savers automate their savings.

If you wish to Become Debt-Free in one year, try using the following tools and approaches to automate your debt payments:
Set up automatic transfers from your bank to your credit card.

Keep track of payment due dates with a calendar or automated reminders, especially if you're paying off many credit cards or bills at once.

Track your debt repayment progress using a debt management software, a budgeting app, or the online tools provided by your bank.

Implement a Debt Repayment Plan

There is two possible ways of doing this on your own without the help of a third party:
The Debt Snowball and Debt Avalanche approaches are two well-known debt-reduction tactics. Here are some examples of those methods:

Debt Snowball Approach:
With this technique, you begin by paying off your smallest obligation first, while continuing to make minimal payments on your remaining bills. You next on to the next-smallest debt. This will provide you with a sense of momentum that will grow with time, similar to a "snowball" moving downhill.

The Debt Avalanche Approach:
Using this strategy, you begin by paying off the loan with the highest interest rate first, while making minimum payments on all other obligations. Then you begin repaying the next highest-interest debt. You can pay less interest over time if you pay off your higher-interest obligations first.

In Conclusion:

While the debt avalanche plan can help you save money on interest, you may prefer the sense of success that comes from paying off smaller obligations first. Whatever method works best for you, the end goal is the same: debt freedom.

Apply for a debt consolidation loan.
By consolidating your credit card debt and other loans into one single loan, you may be able to receive a better bargain on paying them off. This is referred to as a debt consolidation loan.

To qualify for a consolidation loan, you should have fair or higher credit.

When considering this alternative, I believe it is critical to be certain of how you will keep that credit card, overdraft, etc. once it is paid in full. What happens the next time you need quick cash to restore your car or buy a new clothing for a special occasion but don't have it?

You will use the credit facilities that are available to you and slip back into debt.

Debt cannot be paid off with more debt. And this alternative is not great if you are currently experiencing financial difficulty.

Refinance your Home to Consolidate your Debt.
If you own your house, have enough equity in it, and qualify to refinance your mortgage at a reduced interest rate, you might consider a cash-out refinance or a second bond on your home. This allows you to refinance your mortgage in such a way that some cash from your home equity is released, allowing you to apply that money toward other goals, such as paying off high-interest debt.

The major question here is whether you really want to pay off your debt over a period of 20 years or more. This doesn't make much sense.

Earn extra cash using a side hustle.
Naturally, earning extra money can help you pay off your debt faster. Consider committing some of your free time each week to earning more money. This, of course, is dependent on your job status, skill set, and amount of spare time outside of work. There are various ways to get extra money, whether you work more hours, take a part-time job, or establish a lucrative side business.

Declare bankruptcy to discharge your debts.
When your bills have grown insurmountable and you don't see a way out, declaring bankruptcy may be your only alternative. Bankruptcy can help you get rid of your debts and start over so you can restore your finances.

Taking the above into consideration it is of utmost importance to find the right company to assist you in this endeavour to ensure that the matter is dealt with in a professional manner and a reputable company that will provide you the correct information pertaining to your financial situation.