Want to get out of debt? Want to do it right away? We can help! These five easy tricks will help you get out of debt quickly and get you onto a brighter financial track.
1. Pay More Than The Minimum
All of your debt accounts will give you a set monthly payment that you need to make. While you definitely need to make sure you pay this minimum on time in order to reduce your debt, you should also pay a little bit more. Any extra payments you make will help decrease your interest payment and also make your debt disappear faster. An easy way to do this is to simply round your payment up, making it a nice whole number and also paying off more of the debt. If your monthly payment is $176, pay a full $200 each month. This will be easy to budget for and after 12 months of doing this, you will have paid more than a full extra payment on your debt! That “minimum payment due” should just be the absolute minimum that you pay.
2. Pick Up A Side Job
The best way to get out of debt fast is to increase your income. Pick up any side jobs that you can in order to make a little extra money. Try babysitting, mowing lawns or picking up extra work at your existing job. Just be sure to put any extra money you make toward paying your debt. If your additional income goes straight toward debt payment, you won’t have to work that extra job for long!
3. Consolidate Your Debt
If you have several debt accounts, it may be beneficial to consolidate them into one, easy to manage payment. You can easily do this by taking out quick loans and then using the cash from the loan to pay off several debt accounts. For example, you can use the money from the loan to pay your high- interest credit cards in full and also pay off your car loan. Then, each month, you will only have to worry about paying one debt account (the quick loan payment!). This is easier to keep track of and will ensure that you never miss a payment by accident and get hit with late fees!
4. Negotiate Your Bills
Did you know that you can actually lower many of your bills just by asking? If you have a history of making on-time payments, there is a good chance that you can reduce your bills, save money and put that extra cash toward paying your debt. Cable companies, cell phone services and also internet providers are just a few examples of bills that you may be able to negotiate. You can also call your credit card company and see if they will reduce your interest rate, which they very well may do if you have a strong payment history! Call all of your creditors and utility providers and ask- the worst they can do is say no!
5. Balance Transfers
If you have debt that you are paying off at high interest, look into transferring that debt to a lower rate account. Look for credit cards that offer a 0% introductory rate and also accept balance transfers. Then, move your debt from the high-interest account to the zero percent account. You will be able to keep your debt interest free for at least a few months and make some progress toward paying off the principal.
Whether it be negotiating your bills, utilizing quick loans or making a little extra income, there are lots of ways to pay off your debt. The biggest thing you need to do is stay focused and work toward your financial goal! Debt does not need to last forever!