Debt is a four-letter word that sends shivers up the backs of many Americans and “Non-Americans”. Among other reasons, debt can lead to increased anxiety, lower quality sleep, and unhealthy eating habits. The good news is that there are a number of different ways you can get out of debt. Below, we’ll explore six ways to do so.
Guide to getting rid of DEBT (Overall)
–The first tactic for getting rid of debt involves getting a handle on your spending habits and sticking to a budget. This may seem like an obvious step in the process but it’s often one that people skip because they think they don’t have enough money left over at the end of the month to put towards savings or paying off their debts (like mortgages). However, you’d be surprised how much money you could potentially save if you simply cut back on some of your spending habits. For example, a family that spends $2,000 per month on eating out can save roughly $250 per month by making just one meal a day at home.
In order to save more money, you’ll need to be more disciplined about your spending. If you’re not careful, you’ll slip into a habit of spending more than you should on things that don’t really matter (like eating out) and slowing down when shopping (for example, by waiting until later in the day to make a purchase). You can save even more money by simply cutting back on your expenses. For example, if you pay $10,000 per year in rent, wouldn’t it make sense to find a cheaper apartment? Or if you travel around the country for work, wouldn’t it make sense to spend less time traveling? These are all small changes that can lead to big savings over time.
Cutting back on your expenses is the first step to getting rid of debt. You’ll need to be disciplined about your spending habits in order for this to work.
–The second tactic for getting rid of debt involves consolidating different types of debt into one payment each month. This means that you will pay off a large chunk of your credit card bill or a student loan at once, instead of paying it along the way over 12 or 18 months. This technique can also be used for mortgages and other debts that also require regular payments. For example, if you have two credit cards that require $1,000 per month payments, you could consolidate them into one monthly payment of $2,000. The advantage of consolidating debts is that it allows you to put your additional income towards paying off the debt (instead of paying it off slowly over time).
–The third tactic for getting rid of debt involves refinancing your mortgage or other debts. This is a popular choice because when you refinance a mortgage or other debt, you get to keep all of the extra money that came along with it. For example, let’s say that your house has been appraised at double what you originally got for it. You could refinance the house and end up getting $500,000 but instead of paying off the original mortgage in full, you can now use the extra money towards paying off a balance on your credit cards. By doing so, you get to keep all of the extra money that came along with the refinance, while at the same time speeding up the process of paying off your debts.
Paying off debt can be hard but there’s no reason to sit around and feel like you’re drowning in it or that there’s nothing you can do about it. Find a discipline for your spending habits and start making extra payments towards your debt. And you’ll be able to get out of it sooner than you think.
So, what are some ways for getting rid of credit card debt?
- Always make more than the minimum payment required. This is the best way to get rid of credit card debt. It will help you pay off the debt quickly and save on interest. Plus, when you make more than the minimum payment, it allows you to put any extra money that goes along with it towards other debts that you have. You could use it as a way to save up for a vacation or other major purchase that you’ve been putting off until now (like a new car).
- If possible, try to pay down your highest interest rate debt first. If you have several credit cards with different interest rates, focus on those with higher rates first. By doing so, you will save money on interest payments for the time being.
- Set a date for yourself to be debt free. Many people who have gotten out of debt have set themselves a goal of being free from credit card debt by a particular date that was also important to them. For example, a person may tell themselves that they will be completely done with credit card debt by the day they retire or the day their child is born. By setting this type of goal, you’ll find that you are motivated to get out of credit card debt faster.
- Consider working with a debt consolidation loan. This is another effective way to get out of debt since you will be able to put all of your extra money towards paying off your debts instead of paying it along the way in interest. However, make sure that the debt consolidation loan is approved before you do anything else—you don’t want to end up getting more credit card bills on top of the original ones that you already have!
- Consider getting a second job. If you have the time and energy to get another job, working overtime or taking on an extra job might be one of the most effective ways for you to get out of credit card debt. This is because it allows you to save up lots of money per month that can go towards paying off your debts in full. As long as you are able to do this with minimal effort, it’s an excellent way for getting out of debt quickly!
- Consider selling things like an extra car, expensive jewelry or other valuables that could bring in a bundle. While not very common in today’s day and age, selling valuable assets may be one way for getting rid of debt quickly.
Now, what are some good ways for getting rid of student debt?
First and foremost, consider looking for scholarships to use instead of loans. Scholarships are one of the most cost effective ways for paying for school. They provide you with money that they don’t need to pay back. However, to qualify for a scholarship, you’ll need to do some research on your own and outline what your goals are. It may take a lot of work but think about it as earning money instead of wasting it!
Ok, now..into the point:
- Consider getting an education that is in line with what you want to do. While not exactly one way for getting rid of student debt, choosing an affordable education will allow you to use the extra money towards paying off any student loans that you have.
- Consider getting a part time job. If you have time on your hands, consider looking for a part time job in the evenings or at night that will help pay off your debt. By doing so, you’ll be able to put all of the extra money towards paying off your bills instead of using it for other things. You could also see if there are any programs at your college or university that will allow you to make money in exchange for services. For example, there are some universities that will let students tutor students after school in subjects like English and Biology as one way for making money to pay for school.
- Consider working with a loan consolidation company. By doing so, you will be able to shorten the time it takes for you to pay off your debts and save a lot of money in interest.
- Consider refinancing your student loans. If there is any extra money after paying off the original loan amount, do some research on how much it would cost to refinance that amount into a new loan that offers more repayment options. Doing so will allow you to shorten the amount of time it will take to pay off your student loans and save on interest charges.
- Stay focused on your goals. Many people who have been able to get out of debt by working hard have been able to do it by focusing solely on the goal of getting out of debt and working towards that objective. While this is usually difficult, think about it as part of running a marathon or any other type of goal. The first person to reach their goal wins!
Is being debt-free the new rich?
Well, technically it’s not the new rich, but it seems to be on the rise.
Americans are reaching for their wallets more than ever before, with a quarter of them saying they would rather reach for credit cards or loans than pay bills… and another 37% saying that they would prioritize debt repayment over paying all their bills in full. So if you’re in a position where you can’t afford to make payments, which some people are — perhaps because of low-paying or unstable jobs or just not making enough money — it might be worth considering debt relief.
Is it better to clear debt or save?
When it comes to debt versus saving, there’s no right answer — it really depends on the situation. If you’re going to be using your savings to pay off debt like a credit card or student loan, then it’s worth considering. But if you’ll be using your savings for something else in the future — something that you might need more than wiping out your credit card balance — then you might want to keep them in a high-interest savings account instead. Ultimately, if you want to get out of debt as fast as possible then paying off your balances is the best choice.
To conclude, getting out of debt is not an easy task, but it’s possible with the right methods. Just saying this, I’d like to end this blog post. I hope that this helps you in getting through your financial struggles.
And remember, if you’re into “getting out of debt fast”, be sure to check out the rest of this site.