7 Ideas For Getting Out Of Debt
September 27, 2019
If you’re in debt, you’re not alone. The average American has thousands of dollars in credit card debt along with tens of thousands of dollars in non-mortgage debt, such as car loans and student loans. Getting out of debt can be difficult, especially as interest rates on your debts make it feel like you’re swimming against the current.
However, getting out of debt is important if you want the financial flexibility you need to pay for financial emergencies or provide a quality of life for your family.
The following are a few ideas to consider in order to get out of debt:
Put Extra Money Towards Your Balances
While you could just make the minimum payments on your debts, you’re going to find it difficult to pay off your debts (especially larger ones) if you’re only making minimum payments since the interest on larger balances will practically cancel out the payment you made. Identify balances with high interest rates and focus on paying that balance down by paying more than the minimum every month.
Make Extra Money on the Side
Obviously, this is easier said than done. However, if you look around, you might be able to find a few side hustles that can bring in extra cash. There are always miscellaneous jobs posted online that you can apply to, such as on Craigslist. You may able to find work on sites like Upwork.com or TaskRabbit as well.
Create a Budget and Stick to It
Many people have trouble paying down debts because they’re spending too much money. Look at your weekly budget and try to cut down your expenses as much as possible. For example, instead of eating out on the weekends or buying lunch at work, begin cooking at home and bringing lunch from home. This can help to save a significant amount of money that you can put towards your debt.
Sell Things You Don’t Need
Take inventory of your belongings. There’s a good chance that you have a lot of things that you either no longer use or simply don’t need. For example, kitchen appliances and utensils that you’ve collected as gifts over the years. Hold a garage sale to sell some of these items or try to sell them online.
Negotiate With Your Creditors
Believe it or not, if you have a credit card with a large balance on it that you’re trying to pay down, one option is to contact the creditor and request a lower interest rate. If you’ve held the card for a long time, the credit card company may be more willing to drop the interest rate for you as a reward for being a long-time customer. This will save you money on interest and make your debt easier to pay down as a result.
Use Any Found Money to Pay Off Balances
Whenever someone comes into more money, whether they get a raise, a bonus, a tax refund, or they’ve been left money from an inheritance, they tend to spend it. Instead of spending it, put it towards one of your debts.
Drop an Expensive Habit
If you have an expensive habit, such as smoking, drinking (even if it’s in moderation), or gambling, you should work towards dropping it. Not only is it better for your health to do so in many of these cases, but you’ll save a ton of money as a result. These habits can be quite expensive, after all.
Getting out of debt can be difficult, but you don’t have to face it alone. We’re here to help, and we have proven, predictable ways to pay off your debt for good, no matter how much you owe. We know you work hard, and we know how burdensome debt can be. It’s more than just money. For professional advice on how to manage your debt, contact Safe Money Partners today.