It is easier to get into debt than to get out of it. Most times, a loan can be incurred in a matter of minutes while it could take months or years to pay it off. With the rise in online loaning apps in Nigeria, it is very easy to fall into the trap of taking loans.
If you are currently struggling with paying off your debt, here are some steps you can follow to pay it off faster:
Stop incurring more debt
The first step to getting out of debt is to stop accumulating more, else it’d be harder to come out. Avoid borrowing money from your family, friends, banks, etc. This step will not eliminate your loans but will help in the process of getting out of it.
Organize your debt
You can do this by calculating how much loans you currently have, then arranging them according to priority so you will know which ones to pay off first. You will need to list the amount you owe, the interest payable, and the monthly minimum payment on each loan. It is easier to develop a debt-repayment plan when you have all this information available.
Increase your monthly payments
If you can pay more than the monthly minimum on your debt, you will get out of it faster. Interests can exponentially increase the timeline you have for paying off your loans. To get out of debt faster, try to increase your monthly payments.
Build an emergency fund
Having an emergency fund is necessary when trying to get out of debt, it prevents you from incurring more when life happens. Unexpected or unplanned expenses might be the reason you are in debt; an emergency fund will take care of such expenses so you do not end up borrowing again.
You can take advantage of Overwood’s high-interest rate to build your emergency fund. An ideal emergency fund has up to 6 months of living expenses saved up.
Have multiple income streams
Building multiple sources of income is a necessary step to get out of debt and avoid living paycheck to paycheck. An extra source of income will help you pay off your loans faster than you expect. This could involve starting a side hustle, getting a part-time job, or selling products online. Using the extra money you earn to pay off your debts is key to getting out faster.
Change debt-enabling habits
You will need to cut down on your expenses as much as you can to manage your finances effectively. The fact is, more than half of Nigerians spend more than they earn each month. Once you track your spending habits, you will be able to cut off the excesses so you can live frugally.
You can achieve this by replacing paying for DSTV with GOTV, cooking home food rather than eating out, and reducing your data consumption. Just try to live below your means for as long as possible until you can pay off your debt.
Live within a budget
One of the reasons most people run into debt is because they do not know how to manage their expenses. To become debt-free, you’ll need to be in control of your personal finance and the best way to achieve this is by budgeting. Live within a budget and cut off the excesses in your expenses.
Becoming debt-free can be a difficult task but by practicing these habits and being disciplined, you will achieve it in no time!
In the last six months, we have built an array of investment products to change the way people build their financial futures. If you desire financial freedom, you can attain it with Overwood Prime, Overwood Dollar, or Overwood Child. The goal of our products is to make it easy for you to access safe and valuable investments whether you have 50,000 Naira or 500 million Naira. Here’s all you need to know about the Overwood products.
Let’s start with our flagship product – Overwood Prime.
OVERWOOD PRIME
Overwood Prime is our flagship product that emphasizes fund safety and principal protection. With a minimum investment amount of ₦50,000, OVERWOOD PRIME suits investors who are looking for long-term growth and want to protect their investment against market fluctuations.
OVERWOOD PRIME is focused on the preservation and safety of the capital invested. We aggregate funds from our clients, select the best and safest instruments in our market, diversify and adjust as needed, and distribute daily dividends proportionately.
OVERWOOD PRIME returns 8%-15% per annum compounded daily, and you can withdraw at any time, once every quarter with no penalty.
Our portfolio strategy is a conservative approach designed to minimize the risk to the invested capital while guaranteeing good returns. 80% of the fund’s net assets are invested in dividend-paying money market instruments, and 15% in other pooled investment vehicles with higher returns (stock, credit instruments, agro-instruments, etc). The remaining 5% of the fund is placed in riskier assets (derivatives and algorithmic trading) with extremely high returns.
The minimum investment amount for OVERWOOD PRIME is ₦50,000 and you can top-up at any time, with a minimum of ₦20,000. Learn more about Overwood Prime.
Benefits of investing in Overwood Prime
Fund safety.
Good returns.
Daily dividends.
Compound gains.
How to invest in Overwood Prime
Login to your dashboard.
Navigate to Overwood prime, and click on “invest”.
Specify the amount you want to invest.
Click on the signature box to sign.
Click on “complete transaction”.
Transfer your principal to Overwood.
Monitor your daily dividends.
How to withdraw
Click on the ‘withdraw’ button on your dashboard.
Confirm and verify your details.
Input the amount you would like to withdraw.
We will credit your bank account within 24 hours.
OVERWOOD DOLLAR
The dollar fund was designed for investors looking to hedge their funds against currency depreciation.
With a minimum investment amount of $200 (the Naira equivalent), you can invest in OVERWOOD DOLLAR and earn significantly higher returns than what is obtainable from the market.
The objective of our dollar fund is to achieve income generation and capital appreciation in the long term for investors, in dollars. The fund is open to anyone who desires exposure to dollar-denominated income securities. Investors can invest their funds in Naira but it will always be held in US Dollars.
OVERWOOD DOLLAR is a 100% money market fund, which is the least aggressive instrument in our portfolio. This is because the entire goal of this product is principal protection.
Our Dollar fund is meant for long-term investments of at least 1 year. This is to ensure that your money appreciates over time.
Benefits of investing in the fund
Capital appreciation.
5% returns per annum compounded daily.
Fund safety.
Daily dividends; and
Diversified portfolio.
How to invest in Overwood Dollar Fund
Login to your dashboard.
Navigate to Overwood dollar, and click on “invest”.
Specify the amount you want to invest in Naira (at the prevailing exchange rate).
Click on the signature box to sign.
Click on “complete transaction”.
Transfer your principal to OVERWOOD.
Monitor your daily dividends.
How to withdraw
Click on the ‘withdraw’ button on your dashboard.
Confirm and verify your details.
Specify the amount you would like to withdraw.
OVERWOOD will process your withdrawal within 24 hours.
OVERWOOD CHILD provides an opportunity for parents to plan for the payment of school fees and other educational needs of their children. It is designed for investors looking to grow the funds earmarked for their children’s current and future school fees.
The objective of the OVERWOOD CHILD education fund is to help parents provide the best possible education for their children, so they attract a higher interest rate (about 0.50% higher) than our flagship OVERWOOD PRIME in exchange for less flexibility in withdrawal terms.
OVERWOOD CHILD investors can withdraw from their account during the school fees payment period without any penalty (January 1-7, April 1-7, and September 1-7).
The minimum investment amount for OVERWOOD CHILD is ₦50,000, and its portfolio composition is 75% money market, 20% stock/credit-backed instruments, and 5% derivatives and algorithmic trading.
Benefits of the child fund
Fund safety.
Competitive returns.
Fund security for the future education of your child.
Daily dividends on investment.
How to invest in Overwood Child
The first step is to create an Overwood child account for your child/ward. To create a child account;
Navigate to “Overwood child” on your dashboard, and click on “create new child”.
Fill in the details and click on “create account”.
Navigate to your Overwood child dashboard, and click on “invest”.
Specify the amount you want to invest.
Click on the signature box to sign.
Click on “complete transaction”.
Transfer your principal to Overwood.
Monitor your daily dividends.
How to withdraw
Click on the ‘withdraw’ button on your Overwood child dashboard.
We started OVERWOOD with one goal – to make safe, high-yield investments accessible to regular people. We are focused primarily on the safety of the funds under our management, and our core values are diligence, integrity, self and mutual respect, and customer service. Learn more about us here.
Ever thought of growing your funds with minimal effort? Compound interest is a powerful tool that could help you reach your financial goals effortlessly if you put your money to work for you. The power of compound interest helps to grow your wealth exponentially over time. However, it is a blessing to the lender or investor and a bane to the borrower.
According to Albert Einstein, the principle of compounding is the most powerful force in the universe, and “he who understands it earns it”. Compounding is an incredibly important and strong force in the financial world. However, with debts, it could work to your disadvantage. The formula to grow your wealth is, therefore, to avoid debt and save/invest your money as much as possible.
Compound Interest
In simple terms, compound interest is earning ‘interest on interest’ and this can cause your wealth to grow rapidly over time. It earns more than just simple interest, which does not accumulate on already earned interest.
With compound interest, you earn interest not only on your principal but also on the interest earned on your investment. This is how your wealth grows exponentially.
Factors That Determine The Returns Of Compound Interest
There are three factors that determine your compound interest returns and influence its compounding rate:
The Amount
The more money you put to work for you, the more dividends your funds will earn. At Overwood, we pay daily dividends to all our investors on our platform, according to the value of their investment. Find out more here.
The Interest Rate
This is the profit you earn on your investment. The higher the return on your investment, the faster your money will grow. At Overwood, we offer compound interest rates of 8-15% per annum on money invested. Invest with Overwood.
The Length of Investment
The longer you leave your money to work for you, the more it will compound and grow. This is such a significant part of any investment and earlier investments could yield much more than later investments, even though the later investments have larger principals.
Why should you start now?
Compound interest exponentially grows your money with time. The sooner you start investing, the more your funds will earn overtime.
Here is an example;
Sam and Jim are 20 years old. Jim starts investing at the age of 20. He invested NGN50,000/month at an interest rate of 10% per annum, for twenty (20) years and then stopped. Sam, however, did not start investing until he was 30 years. He invested NGN50,000 every month for forty (40) years, earning an interest rate of 10% per annum.
Sam
Jim
20 years
NGN0
NGN630,934.69
30 years
NGN630,934.69
NGN10,307,457.33
40 years
NGN10,307,457.33
NGN38,322,194.08
50 years
NGN38,322,194.08
NGN104,156,257.44
60 years
NGN114,463,714.77
NGN283,087,287.27
70 years
NGN321,409,481.36
NGN769,405,642.85
Total amount invested
NGN24,000,000
NGN12,000,000
[click_to_tweet tweet=”An investment left untouched for a long period of time will compound to a large sum, even if you never invest another dime. Click the link below to learn more about the power of compound interest.” quote=”An investment left untouched for a long period of time will compound to a large sum, even if you never invest another dime.”]
Jim utilized the power of compound interest in growing his money by starting early. However, Jim didn’t and by postponing his investment, his opportunity cost grew.
Opportunity cost is the benefit missed when an action is not taken—in this case, the amount of money you lose by not investing early. By not investing in the same year as Jim, Sam lost the opportunity to earn NGN630,934.69 in the first ten years, and NGN447,996,161.49 at the age of 70.
Compound interest is the most powerful but most underestimated phenomenon in the financial market. With it, anyone who invests regularly can reach their financial goals faster.
The best thing about compounding is that it gets more powerful every year and your funds earn more returns over time. If you keep at it, your money will grow exponentially over the years.
Are you curious about how much funds can earn over time with the power of compound interest? Use our compound interest calculator to find out here.
Bust explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system and expound the actual teachings of the great explorer
Bust explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system and expound the actual teachings of the great explorer
Bust explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system and expound the actual teachings of the great explorer
Bust explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system and expound the actual teachings of the great explorer
Bust explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system and expound the actual teachings of the great explorer
Bust explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system and expound the actual teachings of the great explorer
Bust explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system and expound the actual teachings of the great explorer
