Money Tips

How to Successfully Handle Debts and Increase Your Income

Are you swimming in debts hopelessly? Don’t worry; a solution is waiting for you to handle debts and increase your income. Operating in a life full of debts can be embarrassing! You lack the freedom to plan for your income confidently. Why? A potential client whom you owe will be calling you the next minute. Guess what? Agony follows!! No clear answers to his request. Handle Debts and Increase Your Income.

The stress may graduate to a depression affecting your physical and emotional health. While undergoing through such a condition, consider looking for an alternative like side jobs from home. You can earn as a side hustle to cushion you from financial hurdles. Once you grasp the idea, I assure, you will enter into rest. Wow!

In 2018, statistical data revealed by New Yolk Federal showed that the collective personal debt of all Americans is $13.2 trillion. The figure comprises what they owe on their credit cards, mortgages, student loans etc.

How to Handle Debts and Increase Your Income?

You need to set various strategies that will enable you to walk out of that horrible pit full of debts. I suggest that you start learning to earn extra income from side jobs from home. You can do them after your daily work. Also, you can initiate the following to come out of that debt situation:

  1. Create a winning budget
  2. Develop an emergence fund
  3. Seek a loan from a lender

1. Create a Winning Budget

Do you sometimes find management of cash tricky? If yes, then you need to create a personal budget. Creating a manageable budget will help you track and understand where all your money goes. For someone to understand the spending habits, revisit your expenses for the last three months or so. The information on your costs will determine how you will factor savings in the future.

For you to succeed in implementing your monthly budget, discipline is a virtue to enforce. Here are tips that will assist you in setting up a reasonable budget:

Capture All Your Income Flows

You may need to take note of all your money that comes in during that particular month. Analyze and get a proper understanding of all your income streams. The common ones being your salary, business profits, gifts or side jobs from home. As long as these income avenues bring a steady cash flow, they become your basis for your budgeting journey.

Write Down Your Recurring Monthly Expenses and Bills

For better management of your cash, you need to capture your recurring expenditures. I believe in some; it may be a monthly rent, mortgage, utility bills, internet bill, phone bill or even medical bills. Such data will enable you to know where to re-allocate your money and actualize proper usage and eventually saved.

Live Within Your Means

Living within your means involves spending less than what you get. Always reassess your spending if you find yourself spending more than what you get. Take advantage of apps like ASK TRIM to analyze your recurring expenses. Furthermore, the app will assist you in determining where you can save or eliminate costs.

Note Your Personal Finance Goals

When you write your goals as a rule of thumb, the chances are high that you will achieve them. If you realize from your data that you lack savings, then opt to trim your expenses until you can save some money on that particular month. It’s a good practice to set a target of the amount of money you would want to save every month. Consider increasing your income through side jobs from home.

Use an App to Help You Budget

When you want to stick to your budget and maintain the discipline, you could use an app. The app has segments like mortgages, food, rent or medical expenses where you add your entries. Once you exceed the budgetary limit, you receive an alert warning! The app automatically imports your bank and credit transactions helping you to stay on track.

Respect Your Small Beginnings

Start small and increase steadily. Look for side jobs from home to get partial income. Don’t expect the magic of saving a large amount of money overnight.

Implement Smart Financial Goals

SMART here is an acronym that stands for Specific, Measurable, Achievable, Realistic and Time-Bound. Your achievement will energize your motivation to set bigger goals in effectively running small goals. Side jobs from home can be part of your small goals.

Use Hard Cash on Errands

When you want to stick to your budget, avoid carrying credit or debit cards. By taking cash around, you remain intentional on what you want to purchase. Every time you move out with cash, you will have tuned your mind to consider buying priority items.

Break Your Goals and Move Higher

When you accomplish a small goal, dream bigger. There are different goals which you can put into consideration: Saving a certain amount into different accounts and adding the proceeds of side jobs from home to your account. These accounts can be for retirement, emergency funds, and vacations.

2. Develop an Emergency Fund

Along your journey of life, you will meet unexpected expenses, which puts a demand on you to create an emergency fund. The most common payments that require you to set up an emergency fund are a medical bill or a car repair.

How Do You Set up an Emergency Account?

Open a bank account and earmark its use for emergency cash only.

Having an emergency fund is a decision that is highly recommended by financial experts. The main aim of having such a fund is to settle any unforeseen expenses like:

  1. Job loss
  2. Auto or home repairs
  3. Injury or sickness
  4. Reduction in income
  5. Unplanned travel expenses

Advantages of Setting up an Emergency Fund

It Reduces the Stress Level

Have you ever experienced a situation whereby your financial security is threatened due to an emergency expense? It can be stressful if you have nowhere to turn to for an immediate solution. Can you avoid such a situation in life? I think setting up an emergency fund can be done well. Once an emergence shoots up, you can handle it well when you set aside funds for that matter.

Keeps You From Entering Big Debts

How do you handle unexpected expense when you lack an emergency fund? Some folks seek refuge in taking loans, finding the service of a payday lender or credit card. Payday loans hurt your finances while a credit card may have high-interest rates. To avoid this kind of costly borrowing, save money in advance to settle unforeseen expenses. Supplement your emergency fund through your earnings from side jobs from home.

Protects Your Credit Score and Report

Financial surprises will hurt your credit score. For instance, you can lose your job or fall sick and lack a stable monetary base. Repercussions? The impact on your financial score can reflect for years. When you use more of your credit limit will reflect on the credit report, and your utilization ratio goes up. To avoid running up a high credit balance, establish an emergency fund.

How Do You Build an Emergency Fund?

For you to build an emergency fund, employ different strategies to set save money. We have some specific personal situations that can affect your savings, such as:

  1. Current debts
  2. Income
  3. Financial responsibilities

Tips on How to Create an Emergency Fund

Have Your Budget Ready

When you make up your budget, you will have a clear understanding of the amount of cash available for saving. The budget will list all your income and expenses for better analysis.

Begin Small

You will have to be realistic about your saving goals by starting small. Begin little but don’t remain small. Assess your budget and see how much you can afford to save monthly. When you meet your small goals effectively, switch to a higher step.

Automate Savings

Automate your savings once you a definite figure of the amount of cash you can save monthly. Let your bank adopt an automatic credit transfer of your set amount to your account. Alternatively, use an online bank when saving because they have a high saving interest with lower fees than banks. The temptation of spending an emergency fund that is in a separate account is also lowered.

Boost Your Savings

Do you want to build your funds quickly? The best option is to supercharge savings by reducing some of your expenses. Revise your monthly fees and eliminate the once you feel can be avoided. For example, you can reduce expenditures on travel and channel the money into an emergency fund. More so, you can look for an extra task like side jobs from home and earn income as a side hustle. Direct the extra money to your emergency fund, and you will reach your targets faster.

Intensify Your Progress

The best way to track your progress is to keep looking at your budget and identify the expenses to reduce. Then add the saving fund. For instance, you can get a promotion at your workplace. Instead of spending your salary increase on your lifestyle, add the money to your emergency fund. Once you establish a definite income from side jobs from home, add to your fund.

When Should You Use an Emergency Fund?

Use the following points to determine how you should use this emergency fund for.

How Urgent Is It?

You should always empty your emergency fund whenever you have a real emergency. Make sure you cater to only those needs that are unexpected. You should challenge yourself with questions before you determine if you should use an emergency fund. If a paycheck cash advance can manage the emergency, go-ahead to implement.

Is the Issue Unexpected?

Ensure to use the emergency funds on only pressing needs that need immediate action. For example, when you lose your job. The fund is merely an insurance policy against unpredictable things of life. Avoid using the fund money on impulses. Once you have spent the funds on an urgent issue, replenish it. Consequently, it will enable you to get back to your feet as you do not know what will unfold in the future.

Determine if the Issue Is Necessary

Life is full of shocks. A natural disaster can happen like a strong wind that break your home. Here, you need to relocate as you repair the house temporarily. Don’t use an emergency fund on recurring expenditure.

You should learn to differentiate necessities from wants. Suppose your vehicle breaks down and that is your only means of transport to your workplace. Fix it because it is a necessity. On the contrary, if you buy a new TV, that is a want. Use the emergence funds only to essentials and not wants.

Where to Keep Your Emergency Funds

Its common knowledge that you keep your cash in a place where you can readily access. The following can be ideal places to save money for emergency purposes:

Bank Account

Store your money in a high yield bank account. You will enjoy interest on the deposit, and also accessibility is faster. Settle for those accounts with competitive interest rates with no monthly fees.

Money Markets Account

Money market account operates similarly to a savings account and has high yields. Open the account in a local bank or online. Accessing your money will be through web-based management of the account. You have a privilege to withdraw your cash anytime.

Certificates of Deposits (CD)

How do CDs work? If you keep your money on a specific duration, you receive a fixed rate of return. You will earn extra interest in the emergency fund. The terms remain that you can only access your account after the expiry of the agreed period. A penalty is unavoidable if you close the account before an agreed period.

What Is the Minimum Amount That You Should Have in an Emergency Fund?

It will depend on your comfort level. A recommended standard is a three to six months of your salary/income to be emergence. You may have a stable job, and six months’ salary may not offer you permanent emergence security, then increase accordingly.

What Do You Do if Your Emergency Fund Is Inadequate?

Sometimes the cost of the emergence can be higher than the emergence fund itself. You can do the following if found in such a situation:

1. Negotiate a Payment Plan

You may have, for instance, a pending hospital bill, reach out to the hospital and negotiate how you will pay the bill. Deposit an upfront to prove your seriousness. Remain patient and persistent as you look for more funds to settle the medical bill.

2. Compare the Services

If you need to repair your car and the funds are not enough, shop around. Find out a reliable recommendation for exclusive deals. In case the prices are higher than you can afford then request for a bare minimum fix. Afterwards, pay the pending balance for the repair.

3. Look for Ways of Making More Extra Cash

When there is a need for more money, employ methods that will handle debts and increase your income as listed below:

  • Cut your spending.
  • Work as a by doing side jobs from home.
  • Working overtime at the place of work if the option is available.
  • Selling a personal asset like an expensive car.

How to Manage Your Debts?

You ought to acquire relevant skills to manage your debts, whether small or large. For any liability, make payments so that it doesn’t get out of control. You can manage debts by doing the following:

Knowing who and how much you owe

List your debts and stay aware of your obligations in the picture. Every time you pay your bills, refer to your credit list. Keep updating your debt list as the number of debt changes.

Pay your bills on time monthly

Pay your debts as soon as you remember. Late payment complicates your case. How? The interest rate and finance charges may increase, adding up to an extra financial burden. Set a reminder to be issuing you with a debt alert just some days towards your payday.

Draw a Monthly Bill Payment Calendar

The Pay bill calendar will help you to determine which bills you should pay with a particular paycheck. Capture each bill payment next to the due date. Fill in the time of each payday check. If you get paid on the same days of the month, I recommend using the same calendar each month.

Make at least a minimum payment

At times you may not afford to settle all the debt at once. I encourage you to pay at least a minimum fee. It’s a more straightforward way of keeping your debt from growing and remain in good standing. Avoid skipping to prevent your account from entering default.

Prioritize and rank your debts

When you have the credit cards, pay for the one that has the highest interest rates. I believe you know that such a card may be costing most of the money. You can also scroll through your debit list and eliminate small debts will the lowest balance.

Make use of an emergency fund

Set up an emergency fund to cover for any expenses that may come urgently. When the emergency fund is put in place, the chances of entering into debt are lowered. Having an emergency fund of about $1000 is an excellent place to start. Then growth it gradually. A set standard should be a six-month reserve of your expenses. Boost your emergency kitty through your earnings from side jobs from home.

Set up a monthly budget

Do you want to get out of debts completely? Keep a monthly budget to help you have enough money to handle your monthly expenses. A reasonable budget will help you spend any extra money you have left after costs are covered. You can settle your debts with this extra money you get from side jobs from home.

Seek a financial counselor

In extreme cases, you may find it challenging paying debts, get help from a relief company. They will assist you with practical strategies to come out of a debt situation. You will be the right person to consult the help of this institution if you have a spending problem.

3.Seek a Loan From a Lender

Lenders are financial institutions making loans. They can also be individuals. You can receive these cash loans online. The primary purpose of seeking a loan is to invest in a business that will bring extra income to you. Lenders can actualize your dreams as well as complicate things for you. The terms of your loan repayment will describe the following:

  1. How often you will make payments
  2. The duration of repayment.
  3. The loan interest rate.
  4. Consequences in a case can you fail to repay the loan.

If you want to find a suitable lender, we have some tips below. But you can also get help from Cashry. Together with Fiona, we bring you credible lenders to your home. Not literally, but you can get offers from lenders right now if you meet their requirements. Start here:

How Do You Find a Suitable Lender?

Talk to several lenders and compare the options. The type of loan will determine how many choices you will have on lenders. For example, some institutions don’t give student loans. Personal loans are popular with several lending institutions.

You can shop by:

  • Inquiring from families, friends about lenders.
  • You can visit banks and credit unions.

Personal loans

Personal loans are in two categories:

1. Unsecured Loan

A bank only evaluates to give you a loan based on income and financial history. You will not be required to produce collateral like personal assets.

2. Secured Loan

This type of loan requires putting up a collateral such as a house or a car. Examples of secured loans are mortgages, auto loans and home equity loans.

How to Get a Bank Loan

1. Check your credit score

You can check your credit score at any free site like Creditry. You may not need a perfect credit score. Lenders use that information as a sign of trustworthiness. A higher score gives you an edge.

2. Understand the type of loans

As mentioned earlier, there are two types of personal loans; secured and unsecured loans. In this case, when you fail to pay a secured loan, the collateral will be taken by the bank.

3. Know the terms

You will have to pay your loan in installments. You pay with a monthly interest of over the life of the loan. The loan duration can be 12 months to 96 months.

4. Make a repayment plan

“Your payment history makes up 35% of your credit score. If you continue to make on-time payments and reduce your total amount of debt, your credit will improve” says Young from Credible.

After knowing what you ought to pay per month, plan to pay the minimum required. Alternatively, make extra payments and pay back the loan more quickly. The best place to get your money for repayment can be from the income received through side jobs from home.

Credit Cards

A credit card is a plastic card that people use to purchase goods on credit. The issuer lends the cardholder money to buy things. After a grace period, the interest may start accruing on the outstanding amount.

Statistical research by CNBC News in 2018, indicate that; new credit card accounts declined steeply for young borrowers between 2008 and 2012.  Furthermore, by 2012, 41% of those in their 20s had credit cards in New Yolk Federal State.

“A credit card is a small plastic card that consumers use to pay for goods and services. The cardholder borrows the money for the purchase from the card issuer,” says Finance Smarti.

Advantages of Credit Cards

1. More purchasing options:

You can buy the goods over the phone, through the internet and in-person. If you have cash, you will be limited to only in-person cash.

2.Faster to use

Credit cards are faster to use than cash, especially with writing checks. You only need to swipe, and the transaction is over.

3. You can pay in installments

It allows you to pay your credit balance in full each month. You also have the allowance to pay your balance over a while.

4. It boosts your credit

If the user makes the payment on time and keeping his balance low, the card can help him build a good credit score. After that, she can use to qualify for other mortgage loans.

5. Source of an emergency fund

You can get funds to meet unexpected expense if you can’t afford to pay it from savings.

6. Earning Rewards

The more you use the card, the higher the rewards you accumulate and later redeem.

7. Interest rate promotions

Some cards have 0% interest rate on purchases and balance transfer for six months. You will not incur extra cost during this introductory period.

8. Security

You will not lose your funds after a fraudulent purchase. When a thief accesses your card, he can drain your money. After that, you will wait for the card issuer to clear up the fraud. Good news is that you will have to access the primary source of your funds in the meantime.

9.Billing Errors

You can dispute in writing whenever you have an error on your statement. The card issuer will investigate and correct the mistake.

10. No Cash

Since many places accept credit cards, you don’t need to carry cash around.

Disadvantages of Credit Cards

1.Spending more than you can afford 

The credit cards creates a more purchasing appetite. It by tunes you to believe that you have more money than you do.

2. Cuts your future income

As you use your credit card, a portion of your future earning goes to pay the credit balance. It is a way of protecting your credit.

3. Confusing terms

Sometimes you did not understand the conditions on your credit cards. Let it not be a surprise if you meet some future fees that you did know.

4. High fees and interest rates

Some credit cards can cost up to a hundred dollars per year. Understand some credit terms to avoid some taxes.

5. Credit card fraud

the thieves can steal your credit card information from potential sites you used to purchase goods. Later they use it for fraudulent purchases.

6. Debts

Each time you purchase using the credit card, you create debt. If you don’t pay your credit balances, the debt grows.

7. Credit score

If you misuse your card by paying your credit balance late, your credit score will be affected.

How to Use the Loan to Start a Business

As you are aware, a loan is borrowed money that needs repayment with interest. It is advisable to begin by investing the loan into assets. In this case, consider establishing a business to earn and make profits. You can use some proceeds of your business to settle your loan balance. You can start a business as:

  • Sole proprietorship
  • Partnership
  • Corporation

Sole Proprietorship

For this article, let us limit our discussion to the sole proprietorship only. A sole proprietorship is the most common business organization and is the easiest to start. Some side jobs from home can suit in sole proprietorship category. You don’t have to register it. All a business needs for a start-up is:

  • Business name
  • Business checking account
  • Website and some customers

Since you will not have to register the business with your state, take care of the following legal matters:

  1. Apply for the sales tax permits
  2. Get a business license.
  3. Have special permits for a specific business, e.g. for food; you will require a health permit.

Advantages of a Sole Proprietorship

You Remain Your Boss

The owner of the business is answerable to himself. The business owner makes all the decisions. You may not need the approval of other people to set the rules of the company. In case of an emergency, you can instantly decide the course of action.

Low Start-up Costs

You may not require costly legal expenses as well as corporate taxes to start this type of business. Begin with no employees to add a few with little taxation.


The owner of the business enjoys all the profits, unlike in partnership where they share profits with other owners.

Total Business Control

The business owner has total control of the overall management of the business. The owner will have to handle any business challenges without meeting any other opposing views. Suppose the owner makes a wrong decision, he will put the blame squarely on himself.

Simple Process

In case the owner is applying for the business name or opening a bank account, he only requires one signature. It is less complicated when changing business structures. For example, when a sole proprietor decides to go for partnership, he effortlessly does it. He may not require any other signatory to approve his decision.

Disadvantages of a Sole Proprietorship

Personal Assets

There is no legal separation between personal assets and business assets. Suppose the owner incurs a debt and other obligation, he risks losing all his business and personal assets.

Less Capital

Sole proprietors rely on personal money and loans to establish the business. Coming up with additional funds to supplement a brilliant business idea can be hard.

Decision Making

The owner is the sole decision-maker. When it comes to complex decisions that require brainstorming from like-minded partners, the owner lacks divergent views to strike a balance.

Work-life Balance

The sole proprietor lacks time for the vacation to go and spend with his family. The work pressure may hinder him. Even if he goes, he has to be in direct contact to make the decisions for the business in case they encounter problems.


A single-handed business suffers from personal taxes. The business name may be different from their own name, but the taxes will come from the same business owner. Tax benefits are not given to sole proprietors such as health insurance benefits for the employee. In case the owner dies, the business becomes part of the owner’s estate. Later, inheritance taxes will apply if there are beneficiaries.


A debt can damage your image and reputation, affecting your self-esteem and productivity. Put some deliberate strategies that will enable you to walk out of a debt situation rejoicing. There are several income streams available that you can work at the comfort of your home. These side jobs from home can give you an economic leap to unimaginable levels.

You cannot afford to sit and watch the impending dangers of debt. Take a proper step and hold the bull by its horns. If others have succeeded, you can do too.

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