5 Tips for Getting out of Debt Quickly
Debt is the worst. It is intimidating, frightening, and just plain hard to overcome. If you could just get above water, it would lower your stress and improve your daily life. But how can you get rid of your debt? You need some ways to make it happen quickly, and all of these can help.
1. Spend Less Money
Spend less money - don’t roll your eyes just yet. Of course spending less money can help get out of debt, but it isn’t exactly that easy. If saving money was easy, there would be very few people in debt, yet here we are.
Still, there are always ways to save a little more on your expenses, and the very best trick in the book is to become a hard-core budgeteer. Write down every expense you incur. Every. Single. One.
When you track each and every dime that you spend, you will be surprised. Everyone spends more money than they think on one thing or another, and that’s your opportunity to save a little more money. It’s not the most fun thing in the world, but if you can endure for the short term, your savings will help you get out of debt, and the sacrifice will protect your future.
2. Make More Money
Again with the obvious advice! Yes, making more money is also harder than it sounds. Ultimately, you’re going to have to put time and energy into an additional source of income. It can be scary. It will be exhausting, but you’re here precisely because there are no magic solutions.
Many people have explored the art of the side hustle, so take advantage of what they’ve already found. Browse a few lists, and you might find something up your alley that increases your income. A second job isn’t always easy to come by, but if you lower your standards, you might be able to monetize ten more hours a week. Even though it isn’t huge money, it adds up pretty quickly, especially when all of the extra money is aggressively paying down your debts.
3. Simplify Your Finances
Finance gurus have a few tips they say for paying down debts. They’ll often say to pay the one with the highest interest first. While that’s sound advice, it’s not always the best starting point. Sometimes, it’s better to pay the smallest debt first. This isn’t about stretching every dollar as far as it can go. Instead, it’s about psychology. It’s easy to be overwhelmed by debt, but when you pay down a small debt, the positive reinforcement can motivate you to continue. That success is proof that you really can get out of debt, so consider killing all of your small debts first.
Naturally, this only helps if you refrain from creating new debts along the way. Simplifying your ledger will help you feel better about your situation and help you find the motivation to get aggressive with the rest of your debt.
4. Consolidate
Debt consolidation loans are common, and if you can qualify, they help a lot. You can pay down the high-interest credit cards (or other loans) right away and replace them with a personal loan at a better rate. You also go from having a slew of monthly payments to having just one (or you can at least consolidate some of the bills). This is a great way to reduce how much total money it’s going to take to get out of debt. It also simplifies your ledger to help with the psychology of getting rid of debt.
If you don’t qualify for a personal loan, you can consider refinancing your home. You can even consider selling your home and downsizing to use that extra cash to lower your liabilities rapidly.
5. Get Help
Lastly, you can get help. There are a lot of people, groups, and programs out there that will assist you with financial advice. There may be a grant, loan forgiveness, or renegotiation available that you don’t know about. Qualified help is the best bet.
There are a lot of ways to attack your debt, and there is one decision that can check all of these boxes at the same time. Selling your home is not an easy decision, but it can simplify your expenses, lower your debt, reduce your spending, give you a wad of cash, and put you in touch with help in one fell swoop. Frank Buys Houses specializes in quick, easy home purchases. You can get a risk-free quote to see if this is the right choice for you. Contact us online or call us at 209-395-1355.