5 ways to get out of Debt Fast
When you’re struggling with your debt, you know that there is no easy way to get it paid off. While cutting back on your expenses is a good idea, it can be hard to cut out enough from your budget to make a difference on a large amount of debt. Fortunately, there are ways to get out of debt faster. These are five methods that have worked well for many people.
- Get another job. Working two jobs can be tough, but it is the quickest way to earn enough money to get out of debt. Remember that you’re not limited to working outside of your home for another company. Plenty of people set their own schedule and/or work from their home for another company or themselves. You might want to consider babysitting for friends, providing lawn care services, or offering to pet sit for extra money.
- Reorganize your debt with a debt consolidation loan. These loans offer lower interest rates than what you’re currently paying, making it possible for more of your money to go towards paying off debt instead of paying interest. If you’re struggling to make your minimum debt payments, these loans can lower the amount that you have to pay every month.
- Pay off your smallest debts first. If you concentrate on the small amounts that you owe on store credit cards or other personal loans, you’ll be able to eliminate a lot of bills in a short amount of time. Seeing that progress can be a motivator to get the rest of your debts paid off. More importantly, you won’t have as many bills to keep track of every month.
- Cut out a bill. For a few months, turn off your cable, internet, and/or cell phone and use the money to pay off your debt. After a few days, you probably won’t even miss the old convenience, and you’ll have nearly $100 a month to get your debt paid off. If you just have to have your cable or cell phone back, you’ll qualify for new subscriber discounts.
- Negotiate with your creditors. Call up each company you owe money to and ask for a better deal. This tends to work best with people who have good credit scores; since banks are worried that these customers will find someone who can offer them a lower interest rate.