Please note: This post may include affiliate links. Please read my disclosure page for more information.
Most people have some debt, typically credit card or mortgage debt. However, it can be challenging to get out of debt once a major event occurs, such as job loss, illness, or other life-changing events. Some people have a hard time getting out of debt due to various factors beyond their control. People who have a significant amount of debt can start using these tips to chop away at their debt.
Consider Debt Consolidation Loans
If a person has a large amount of debt and cannot make the minimum payments, debt consolidation loans may be their solution. These loans are usually available for people who cannot pay their monthly bills. They can then use the money to pay off their debts – leaving them with one monthly payment. Learn more at debtconsolidation.com.
Pay More than the Minumum
People often do it, but paying the minimum on their credit card each month is never a good idea. Paying above the minimum can help people pay off their accounts more quickly and lower the amount they owe. Also, paying a bit extra on a mortgage at the end of the month can help people save money in the long term.
Make More Money
There are plenty of ways to get extra money that can be used to pay off debts. Earn extra cash with a part-time job, freelancing, gig work, dog walking/sitting, etc. There are various options, but you may need to be creative.
Avoid Restaurants & Eat at Home
It can be costly to go out to eat. Usually, people underestimate how much they spend on restaurants, takeout, and coffee each month. Instead of going out to eat, try planning ahead and having food that can be quickly prepared at home.
Sell What You Don’t Use
Sites like Poshmark, Mercari, and even Facebook Marketplace allow people to sell unwanted items. These can be a great way to get extra money from selling items you are no longer using. Look around your house, garage, closets, storage units, pantries, and anywhere else you may be storing random items. People may be searching for that random thing you’ll never use again. Let it go and reap the benefits.
Get a Balance Transfer Card
High interest rates are prevalent with credit cards. If paying the bill in full each month is not possible, try transferring the balance to a lower-interest card. Even a tiny change in the interest rate can mean more money saved when the card is paid off.
Eliminate High-Interest Debt First
How quickly everything is paid off can vary depending on how much debt you have and how much interest you owe. For most people, paying off high-interest debts first will help them pay down their debts more quickly. Higher interest rates add more to the monthly balance, making those debts much harder to pay off eventually.
Getting out of debt can be challenging no matter how you got there! Whether it’s medical debt, student loans, job loss, or something else, stop and take a breath. The only way out is through and one step at a time.
TELL ME IN THE COMMENTS: What would you add to this list? Any tips that were game changers for you?