The number one question that many people want to know the answer to is about ways to pay off debt quickly! It’s easy to jump into debt, and get deeper and deeper without realizing it, but there are ways to get out of debt if you stick with the tips below. Please read on to learn a few ways to pay off debt quickly and effectively!
1. Pay More than the Minimum Payment
One of the best ways to pay off debt in a hurry is to pay more than the minimum required payment. If you stick with the minimum required payment, you will end up paying interest rates and spending even more money. See below for the exception to this rule.
2. Snowball Your Payments
If you have more than one payment to make each month on credit cards or other loans, here is a good way to pay off debt quickly. Learn to snowball your payments! Choose either the lowest payment you have, or the payment with the highest interest rates. Pay the largest monthly amount you can afford on this bill while paying the minimum on your other payments. Continue this method until all your bills are paid off!
3. Put Any Extra Money towards Debt
It’s important to remember this tip if you want to pay off your debt quickly. Any time you have extra money, it should go towards paying off your bills. So tax returns, paycheck bonuses, gifts, or other extra money you come into should go into paying off debt. That way you get to your end goal of being debt-free sooner than expected!
4. Budget Effectively
Of course, this tip applies anytime, but especially when paying off debt. Look for ways to save money in your everyday life. If you can cut out unnecessary bills or expenses that aren’t vital, that’s more money towards paying off your debt! Try cutting your grocery and gas budget in half if possible. This tip can encourage healthier eating along the way!
5. Get Credit Cards out of Sight
When trying to get out of debt, it never helps if you go into MORE debt. Leave your credit cards at home in a safe place so you won’t use them. Living within your means is never easy, but it’s one step closer to living debt-free!
6. Use the Cash Only Rule
Here’s a rule that helps you get out of debt, and have savings left over. When you receive your paycheck, withdraw only the amount of money you need to buy groceries and gas. The rest of the money from your paycheck should go towards bills and debt. Spend the cash sparingly, and once it’s gone, it’s gone! This tip keeps you from overspending, and gets you out of debt quickly.
7. Avoid Little Luxuries
Do you like to get your nails done often? Do you eat out for lunch daily? Are you in the habit of picking up drinks and candy every time you stop for gas? If you can cut out little luxuries like these, it’s money saved that can go towards your debt! Reward yourself once or twice a month, but cut back on splurging on a daily basis.
8. Look for Extra Income
My final tip for getting out of debt fast is to look for extra income on the side. Any extra money you can bring in will help get you closer to your goal! Babysitting, dog walking, selling crafts or baked goods, a second job, or a job that you can work from home will be good places to start if you already have a full time or part time job.
These ways to pay off debt quickly will work, but remember to have reasonable goals. If you are in very large amounts of debt, you may need to follow these guidelines for a few years to see your debt completely gone. Stick with it and you will see progress! What are your tips and ways to pay off debt quickly?