Are you sitting on a pile of debt that seems to keep growing?
It may feel like you have to put off even thinking of making payments until you’re in a better place financially. Unfortunately, that plan doesn’t bode well in most cases. The reality is that you need to have a plan to get out of debt, and that plan doesn’t need to last the rest of your life.
If you’re interested in learning how to get out of debt fast, we’ve compiled a list of things you can do to start digging your way out.
How to Get Out of Debt Fast
Some of these tips might seem like common sense, but loads of debt can feel like they require huge gestures. The reality is that the little things are vital to getting out of debt, and you need to dedicate yourself to them to work.
1. Don’t Rely on Your Credit Card Anymore
The reason that you’re in debt may or may not be a credit card issue. Credit cards are a tempting way to solve short-term financial problems. They seem ever-appealing, and sometimes they are necessary for one thing or another.
Thing is, interest rates are particularly high on credit cards. Especially if you’re someone that is already in debt. Credit card companies know that you may not be able to afford payments and you have to suffer the consequences.
Cut your losses now and find other ways to pay for what you need. There’s got to be an area in your life that you can cut costs in, which brings us to our next item.
2. Cut Costs and Put the Money Toward Payments
Find something in your life that you spend unnecessary money on. This thing could be coffee, cigarettes, gas station snacks, or anything else that is non-essential. Factor how much money you spend on that thing every month, then stop buying that thing.
Tuck away the amount of money that you would have spent and put it toward your monthly payments. At the very least, that money could cover the monthly interest.
3. Pay More Than the Monthly Requirements
Whether you’ve deferred payment, lowered it a significant amount, or have just been avoiding payment, try and to a little extra next month. Whatever you can afford to pay each month is how much you should pay.
Monthly payments are fine when you’re looking to get out of debt slowly, but getting out fast requires that you push yourself a little.
4. Talk to a Financial Planner
There’s a lot to be said about speaking to the professionals. These are people who can analyze your budget, find pieces that should go toward debt, and make a plan for you to get out.
You can give them a timeframe and they’ll tell you if you can realistically get out of debt within it.
5. Be Responsible When You Get Lucky
When you find yourself with a windfall, don’t blow it out on the town. That’s money that could get you to financial freedom. The thing is, spending that money on debts will save you more money than you’re spending.
When you consider the interest that could be accrued on, say, 20,000 dollars over three years, you can start to see that putting that money in right away is your best option.
6. Cut Out the High-Interest Debts
Some of your debts will have different rates than others. Try to identify the debts you have that are getting larger faster and handle them first. You’ll probably have to make payments to them all each month, but try putting extra money you save into the highest interest payments.
This will save you a lot of money in the long run, even if the smaller debts are getting slightly larger.
7. Consolidate Your Debts
Consolidation involves taking out a credit card with a low-interest rate and paying off all other debts that you have. This takes all of the money that you have floating around in debts and puts them in one place.
This is both a stress-reliever and a way to lessen your interest. Talk with a financial advisor to see if consolidation is a good option for your situation. It may be a lot easier than you think it is.
8. Get a Side Job
This one may sound like the worst thing in the world, but you’d be surprised how quickly you could stock money by working an extra job. There are plenty of late-night and weekend options that could easily get you 2,000 dollars a month to put toward your debts.
Some jobs can even be performed from home, and don’t even require you to get out of your pajamas. Look around for jobs that you can work as much as you want, allowing you to put every hour that you have into it.
A lot of call centers have options for employees to work remotely, and their hours typically extend late into the night.
There are also a lot of ways to make money online from the comfort of your own home. Whether you’re taking surveys, writing reviews, or anything else, this is money that can chip away at the iceberg of your debt. The surprising thing is, almost anything you’re qualified to do in person can be done online.
There are plenty of freelancing sites that allow you to market and work in your field from the comfort of your home. Even if you don’t think you have anything to offer, browse through a few freelancing websites and find out if you have some hidden, marketable skills.
Many people get their entire income from working online and you could too.
With a Little Help, It’s Possible
Understanding how to get out of debt fast is the first step in making your way. You don’t have to do it alone, even if it may seem like you do. There’s a wealth of ideas for getting out of debt floating around online, as well as thousands of professionals who help people every day.
If you’re interested in learning more about how to get out of debt fast, we have the information you need.