6 Ways To Pay Off Debt Faster
Sadly, the time between realizing you need to pay off your debt and actually getting out of debt can be filled with heartache and hard work. Paying off debt can take years, if not decades. But, here’s the good news: there are a few strategies you can implement to help pay off your debt faster.
1. Pay attention to the minimum payment.
Pay attention to your credit card’s minimum payment. In fact, whether you have student loans, personal loans, or credit card debt, one of the best ways to pay them off sooner is to try and make more than the minimum monthly payment. This will help you save on interest in the long-term and speed up the payback process. Debt consolidation can help with this process and you consolidate your debt into one account and pay back one fee.
2. Create a budget and stick to it.
If you are dead-set on paying off your debt quicker, you are going to have to cut back your expenses as much as possible. One tool you can use to do this is a budget. By implementing a strict, and somewhat bare-bones budget, you can cut your expenses right back and live on as little as you possibly can for as long as you possibly can.
3. Get rid of what you no longer need.
If you need to raise cash quickly to help pay off your debt, it may well pay to take stock of your possessions. Most of us have things lying around that we no longer use and could happily live without. So, gather your extra stuff together and sell it. You can use the funds to pay off your debts faster.
4. Ask for lower interest rates and don’t be afraid to negotiate.
If your credit card interest rates seem pretty high that it feels close to impossible to make a dent in your balances, why not call up your card issuer and get negotiating? Asking for a better interest rate is actually a common practice, and it’s really a case of if you don’t ask, you may never get. If you have a good history of paying your bills when you need to, you may well just get a lower interest rate to help you pay your debts off quicker.
5. Pay off your balances with “found money”.
Many of us tend to come across “found” money throughout the year. Perhaps you get an inheritance, a bonus, or an increase. Or, maybe you receive a really good tax refund. Whatever kind of money you happen to come into during the year, it can go a long way to helping you pay off your debts. Each time you come across unexpected money, use it to pay off a large chunk of your debt.
6. Step away from temptation.
Every one of us is tempted by something. For some, it could be online store, for others it could be eating out every night. Whatever your biggest temptation may be, try to avoid it completely when you are focusing on paying off your debt. When you are tempted to spend, it’s hard to avoid new debt adding up, let alone trying to pay off old debt.
Conclusion
No matter what kind of debt you are in, you must face reality and work towards paying it off as soon as you can, and as logically as is possible for your lifestyle.
