Debt would always come across as an easy solution when one is on a financial crunch and requires money at the earliest. However, even though debt is only a temporary fix, in the long run it has the power to set a person back significantly. Everybody has to deal with debts at certain points of time in their lives and irrespective of whether one has a molehill or a mountain of debt it is never too late to get rid of it. In fact the sooner one does it, the better off one would be. Living with a debt can be more than just a headache and not only would have an adverse effect on your health could also trigger various stress-related illnesses.
The following are five ways to get out of debt quickly -
- Make a list of your debts – Sometimes people are burdened with so many debts that they aren’t really sure of the exact amount which they might be owing to others. One should always be able to chalk out a comprehensive list of one’s debts and this is better when it is done in the descending order of interest rate. In this way, you will be able to prioritize the debts that are at the top since the sooner you repay them, the more you will be able to save on your debt interest.
- Find out how much more you can afford to pay – If you plan to play it safe by repaying only the minimum on your debts then you will be in for a long haul and in the process you will be paying truckloads of money as interest. Thus, dig deeper into your pockets and make use of whatever extra funds you can lay your hands on to pay off the debts you are tied down with. Even if it means only an extra USD 50 a month or so, you will still be able to get out of your debt faster. Employing money saving tactics would also help you squeeze out more money for repaying your debts.
- Set a budget for yourself – It is amazing how things written down on paper or anywhere else tend to stay on your mind rather than just making a mental note. Therefore, do things the old school way and set a budget for yourself each month. Don’t allow extras for the “what ifs” and this would go a long way to save more money with which you can repay your debts. Also avoid the usage of your credit cards to whatever extent possible.
- Try to reduce the interest rates of your debts – A lot of times, the interest rates for debts can go as high as 30%. Therefore if you have such interest then you will only be paying off the interest rather than chipping away at the debt’s principal amount. So, it is high time you have a word with your creditors and try to negotiate with them to bring the interest rates down. A representative will be handy in this case.
- Bringing in extra money for yourself – If you want to get out of debt quickly then you should come up with ways to earn extra money. You can consider working overtime if that helps otherwise you can go for part time job like dog walking, freelance working, content writing, babysitting and so on for earning extra money for use in paying off the debt.
Sara Muler from loansforpeoplewithverybadcredit.net
provided us with this free finance content.