The average American household is $137,063 in debt. Rent, utilities, student loans, groceries, and medical care can add up.
If you are ready for a New Year, New You, consider ‘Become Debt Free’ a resolution in 2019. With the following tips, you can get a head start and eliminate your debt!
Cut Out Spending
One of the first steps you can take if you want to eliminate debt fast is to cut out any unnecessary spending.
Things you can cut back on:
- Going out to eat
- Buying new clothes
- Weekend bar hopping
- Streaming services
- Gym memberships
- Your morning coffee
While each of these types of spending are not that expensive by themselves, they do add up. The $10 a month for Netflix and a gym, the $15 a day on lunch and dinner, and $20 at the bar on the weekend begin to rack up.
Find a New Job
When was the last time you got a raise at your current job? Are you paid minimum wage?
If you are not able to make ends meet with the job you have, look around for other options. Chances are, you might be able to find something that pays you more and has better benefits.
Like the job you are at but want to make extra cash? Secondary jobs, such as driving for rideshare companies, part-time work, and online jobs, are a great start.
Lower Interest Rates
Refinance your loans to get a lower interest rate! Rank you debt by how high or low their interest rates are. Once you know which bills cost you the most, see if there is a way you can refinance or change your payment amount.
In case that is not an option, try to pay off the debt with the highest interest rate first. Work from the top of your list down.
Sell Some Belongings
One of the easier strategies to get out of debt is to sell things you no longer use or need.
There are plenty of sites and stores where you can buy and sell clothing. Some people will pawn instruments or use online marketplaces to sell items around their home.
Go through some of your things and divide them into a sell pile and keep pile. You will be able to knock out two resolutions in one by cleaning your house and making some extra cash.
File for Bankruptcy
When worst comes to worst, bankruptcy may be your best option.
For someone who wants to eliminate debt, you will want to file for Chapter 7 Bankruptcy. This process will liquidate your property to erase any outstanding debt you have. However, this option will not include student loans.
If you do not qualify for Chapter 7, you can file for Chapter 13. This process will consolidate most of your debt into one lump you can pay towards over a 3 to 5 year period.
Become Debt Free in 2019
When you are ready and determined to become debt free, then use these tips to help get you there.
Effective Legal Debt Solutions can make up for areas where you are unsure. For other questions you have about getting out of debt or other solutions, check out our FAQ section!
The Effective Legal Debt Solutions team is comprised of caring, seasoned professionals with years of industry knowledge coupled with personal real-life experience of dealing with debt settlement situations that many of our clients are facing today.