Paying off debt can be frustrating and confusing if you don’t have the right plan. We’ve compiled a surefire list of 8 ways to start tackling the long road ahead.
Stop Using Your Credit Cards
If you really want to get out of debt fast, the most obvious first step is to stop using your credit cards. Remember, the more you swipe, the more your balance will climb. Even if you continue to use your card, avoid leaning on perks like cash advances.
Pay As Much As You Can
Having an emergency fund should be one of your top priorities. Having these funds at your disposal can be a great way to pay down debt. The more you pay each month, the faster you’ll be able to free yourself of these obligations. Did you save some money at the grocery store by stacking coupons? Did you work some overtime or freelance last week? Apply the extra savings to pay down your debt.
Tailor Your Spending Habits
Take a good look at where your money is going. Take out a piece of paper and start writing down your monthly expenses. How many times per week are you going to your favorite local coffee shop? You could save a large chunk of change just making coffee at home. Over time, these savings can add up. Use them to dig out of the hole much quicker than you expected!
Double Down On Payments
So you’ve paid off one credit card. Great! However, that doesn’t mean it’s party time. Keep the momentum going by continuing to allocate those funds that are now freed up to the next card.
Use Good Fortune To Pay Off Balances
Did you come across some extra funds? Don’t use it frivolously. Apply those funds to lower your current debts.
Use Your Skills To Offer Freelance Services
Do you have a creative flare for writing or design? Try your hand at freelancing to earn some extra cash on the side. Check out freelance work sites like Upwork or Fiverr to start up your side hustle!
Tackle High Interest Debts First
Although some people prefer to pay the debts with the lowest balances first, it makes more sense to clear those debts with the higher interest rates first so those balances don’t build up rapidly over time.
Slow And Steady Wins The Race
Settling your debt can ultimately mean a lifestyle change. But don’t lose sight of the things you love. Gradual changes lead to long term solutions!
Sources:
MoneyTalksNews. “8 Surefire Ways to Get Rid of Debt ASAP” June 25, 2019. https://www.moneytalksnews.com/8-smart-ways-pay-off-debt-fast/
