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Saddled with a burgeoning burden of debt?
You’re not alone! Indeed, total consumer debt in the United States sits at a staggering $14.3 trillion these days.
Clearly, there’s no shortage of people struggling to repay one loan or another. Credit card debt, mortgage debt, auto loan debt, student loan debt…you name it, and people out there are having to pay it off.
Alas, debt elimination isn’t easy. When money’s tight, finding ways to make your repayments on time is hard work. Throw high-interest rates and late fees into the mix and the whole situation can feel like a never-ending nightmare.
Would you like some help overcoming those pesky debt problems? Well, you’re in the right place! We’ve put together a guide full of debt-destroying hacks that should get you out of trouble in no time.
Read on to discover 6 top tips for getting out of debt ASAP.
In This Post:
1. Ask for Lower Interest Rates
‘Ask, and you shall receive.’ Isn’t that what it says in the good book?
Well, with loan repayments piling up, now’s the perfect time to give it a shot. If you want more affordable loan repayments each month, then get in touch with the lender(s) to ask for it.
They won’t do it every time, but it’s definitely worth a shot.
With any luck, you’ll speak to a friendly creditor who’s willing to help out- reducing your APR, offering loan deferrals, and so on. You’ve got nothing to lose either. The very worst that can happen is that they refuse your request for help.
2. Increase Your Income
Knowing how to get out of debt is only difficult when you’re low on money, right? If you had lots of cash coming in, then making those repayments wouldn’t be a problem!
That’s why it’s worth looking for new ways to increase your income. Ask for more hours at work, start a side hustle, or get a second job to bolster your wages. You could walk peoples’ dogs, tutor students on a given subject, sell your photos, make and sell arts and crafts, and so on.
With a bit of effort, you can generate the cash you need to repay your loans.
However, try not to let the extra money go to your head. Instead of treating yourself to nice new things, use it to pay off your debts. Don’t, and you’ll be in the same financial position as before- just with less spare time on your hands!
3. Sell Your Stuff
Another way to make a quick dent in your debt is to sell your possessions.
You’d be surprised at how much money you can make this way! Sort through your stuff and sell anything you no longer want or use. A household full of old clothes, shoes, toys, computer games, sports equipment, and furniture could generate thousands of dollars.
Of course, you could also think about selling your valuables. Taking your treasured watches and jewelry to the local pawn shop is far from ideal, but you can definitely earn quick cash this way. In the tightest financial situations, it could be a necessary evil.
4. Use the Snowball Method
Paying down debt can be tough. But paying down debts is even worse.
Few things in life are more stressful than juggling multiple debt repayments with minimal income! It’s a recipe for stress, confusion, and costly mistakes that exacerbate the situation.
Thankfully, something called to as the ‘debt snowball method’ could make a difference. This approach to your predicament calls on you to pay the minimum monthly payment on every debt apart from the smallest one. You throw as much money at that one as you can afford to.
The result? You should pay it off in good time. You then repeat this process, covering the minimum payments on all but the smallest debt.
A snowball effect ensues! You free up more cash each time, which facilitates the repayment process of larger debts. Keep it up and you’ll be out of debt in no time.
5. Leverage Debt Consolidation
The idea of taking on more debt to pay off current ones might seem foolhardy. Done right, though, it can be an effective debt elimination tactic that can get you out of a financial bind.
Imagine someone in a considerable amount of debt that has a high APR to boot. It might be as much as they can do to afford the interest repayments each month! Paying down the loan itself can seem impossible. This is where consolidation comes in handy.
That same person could take out a personal loan with a lower interest rate. Assuming the APR’s fixed (and they can afford the repayments), they could use that personal loan to pay off the initial high-interest one. All told, they end up with far more affordable and predictable debt.
Educate yourself on the process before you attempt it! Be diligent, learn about what’s involved, and figure out the best loan that’s available for you.
6. Slash Your Monthly Outgoings
Last but not least, think about reducing your monthly expenses.
Just like earning more income or selling your stuff, it’s an easy way to get your hands on some all-important cash. You can then put it back into paying down your debts, relieving the financial pressure in the process.
Be brutal! Cut back at every opportunity. You could downsize your home, downgrade your car, cancel subscriptions, prepare your own meals, entertain at home, and so on. It won’t take long for your bank balance to start looking healthier.
Don’t Forget These Debt Elimination Hacks
There’s nothing fun about being saddled with debt. It’s stressful, distracting, and hard to know how to overcome. Thankfully, though, the right approach can make an almighty difference.
With certain tools, systems, and strategies to call upon, you’ll be able to find the cash that’s required to work yourself out of trouble. We hope the debt elimination hacks in this post will help in that regard!
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