You Can Start Paying Off Debt Today With These 7 Quick Wins

 


You know exactly how Atlas felt with the weight of the world on his shoulders when you're drowning in debt! It might be difficult to see the light at the end of the tunnel when you have high-balance credit cards, medical costs following an accident, or never-ending student loan obligations.

But have no fear! We've put up a few tips to help you get started on paying off your debt quickly, because it is possible!

WHAT IS DEBT IN THE FIRST PLACE?

This may appear to be a ridiculous question, but it isn't. When it comes to paying off your debts, we want to be clear about what we're talking about. Essential payments like power, water, and utilities, as well as expenses like insurance, taxes, groceries, and daycare fees, aren't considered debt.

Anything you owe to someone else, on the other hand, is considered debt. A car loan or a student loan, for example, are both debts since you owe money to someone else for the purchase of your vehicle or your education.

Add the amounts owed for the following non-mortgage bills to get a good picture of your total debt:

  • Student loans
  • Car loans
  • Credit cards
  • Medical debt
  • Home equity loans
  • Payday loans
  • Personal loans
  • IRS and government debts

7 QUICK WINNERS TO PAY OFF YOUR DEBT RIGHT NOW

Once you have a complete understanding of your debt status, you can start making plans to eliminate it! Here are a few fast strategies to start digging your way out of the red.

1. Stop Using Your Credit Cards

The first step to getting out of debt, logically, is to stop adding to it! The more you use your credit card, the larger your balance becomes (and the more debt you go into). Reduce your credit card usage as much as possible – if at all possible.

If:

Take inventory of what you're actually purchasing if you have any subscriptions, such as various streaming applications that are automatically deducted from your credit card.

Every dollar counts, so cutting those costs can help you save a lot of money. 

Also, keep track of how often you dine out and shop — you'd be shocked how much money you can save if you know what you're doing!

We appreciate that cutting back on credit card usage isn't feasible for everyone. You should, at the very least, avoid relying on credit card "perks," such as the ability to obtain cash advances. The interest rate on these transactions is frequently greater than on purchases made using your credit card.

By avoiding these, you can keep more money in your pocket and avoid paying exorbitant interest rates.

2. Start with the debt with the highest interest rate and pay it off first.

The "Avalanche Form" is the name given to this method of debt repayment. In this situation, you order your loans by interest rate and begin paying off the balance with the highest interest rate first.

You actually save money by taking on the loan with the highest interest rate first. In the long run, the longer it takes you to pay off a debt or loan, the more interest you will pay.

You can roll a payment into the next financial obligation once you've paid off one credit card or bill. You'll really pay less over time if you approach your outstanding bills with a sensible plan like the avalanche method.

3. Make a larger payment than the bare minimum

You'll need to start paying more than the minimum balance if you truly want to get out of debt. As things stand, if you merely pay the minimums, you'll end up paying more in the long run due to interest rates, and your payout method will only be extended.


When you just pay the bare minimum, your debt might balloon to the point where your minimum payment only covers the cost of insurance, not the real total of your bills.

Instead, make weekly rather than monthly payments, or double the minimum amount if you can afford it. You'll be able to start chipping away at the principle amount you owe by concentrating on paying more each month.

4. Take into account balance transfers

If you have a high-interest credit card or debt, you may be able to save money by moving the balance to a new credit card with a lower interest rate or even no interest.

Many credit card firms provide new account users with incentives such as a grace period during which your balance will not accrue interest.

If you're confident that you'll be able to pay off a high-interest card in a few months, opening a new account and transferring the balance to take advantage of the special offer is a good idea. If you do it correctly, you may be able to save hundreds of dollars in interest!

5. Consider a Side Business

If your budget is already tight and you're having trouble making minimal payments, it might be a smart idea to establish a side gig to help you pay off your debts.

The gig economy has exploded in recent years, making it relatively simple to find a flexible side job to supplement your income.

You may make some extra money on the side by driving for rideshare businesses, delivering for Post mates, or freelancing on the weekends to help pay off your debt.

Even if you can bring in an extra $200 each month to pay off one of your high-interest bills, you'll be $200 closer to getting out of debt.


6. Unwanted Valuables Should Be Sold

If your schedule doesn't allow for a side business, go through your house and see what you don't need or use. Selling these products to others is a good way to make some money.

Consider the following scenario:

Selling that fancy handbag you had to have two years ago to a consignment shop could bring in some extra cash.

Or that Tiffany necklace you got for Christmas a few years ago might be discontinued, and a jewelry store would love to have it for their collection!

We're not recommending that you sell all of your prized possessions, but most of us have goods lying about the house that we don't use. Why not declutter your space and earn some more cash to spend toward financial independence by purchasing something that has been gathering dust in your closet?

7. Recognize when it's appropriate to seek assistance.

No matter how many tactics you study or recommendations you try to put into practice, the debt can sometimes be too much for you to handle. When you're in this scenario, you should know when to seek aid from a credit repair company.

A debt rehabilitation business can help you put out a payment plan that matches your needs and budget, based on their experience helping thousands of people get their debts under control.

In fact, working with a credit repair company can often get you out of debt faster than you could on your own!

Paying off your debts may necessitate some lifestyle adjustments, but it doesn't have to be a gloomy experience. Concentrate on the final result: the freedom you'll have when you're not carrying that big weight on your shoulders!

You'll be well on your way to living a life of financial freedom and getting out of debt for good with a few simple actions and a little willpower!

Related Articles:

https://thephenixgroup.com/credit-repair/

https://thephenixgroup.com/does-debt-consolidation-hurt-your-credit-score

https://thephenixgroup.com/everything-you-need-to-know-about-national-credit-systems


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