As of 2018, consumer debt in America totals up to about $4 trillion. If you have a large debt looming over you, you are definitely not the only one.
Living debt-free makes your life much less stressful. You will no longer have to carefully calculate your expenses or penny-pinch when you are out shopping.
Maybe you have tried all of the typical debt relief strategies to no avail. That is why we are here to offer you more unique strategies that are bound to chip away at a portion of your debt. Here are some of the best techniques for getting rid of that pesky debt.
1. Sell Some Belongings
Your attic is brimming with items that you have not used in years or maybe even decades. Cleaning the clutter out of your house can be a huge weight off of your shoulders. Not only will you be reducing your debt, but you will also be improving your living space.
Some of your belongings may even be worth a decent amount of money if you happen to own an antique. Try selling some of these items online or even at a tag sale. Who knows, you might score big on one of your items.
2. Take a Loan from Yourself
Why borrow from a bank when you can take out a loan from yourself? This option may sound odd, but it is one of the best debt reduction strategies you can try. Having a 401(k) retirement plan or an IRA may mean that you can lend money to yourself.
401(k) plans will usually let you take out $50,000 or less. The best part is that you will eventually receive the interest you pay. 401(k) plans give you 5 years to pay your loan back while borrowing from your IRA gives you only 60 days.
3. Use Negotiation
If your debt is a result of expensive credit card transactions, you might be able to utilize debt negotiation in order to help lower your debt.
Some credit card companies allow you to pay a lower amount than what you owe them. You can only use this method if you presently have enough cash on hand to pay whatever amount is agreed upon. You should also consider negotiating with your credit card company to see if they can offer you a lower interest rate.
4. Get Relief from Life Insurance
Have you been looking for fast strategies to get out of debt? You might want to consider cashing in your life insurance policy.
Maybe you do not have any beneficiaries, like a child or a spouse, that will be receiving the policy. In this case, it might be best to cash it in for yourself so you can quickly pay back any outstanding debt.
5. Transfer Credit Card Balances
You might have come across credit card balance transfers when trying to find out how to become debt free. Transferring credit card balances can actually save you a lot of money when trying to pay back your debt.
Simply transfer the balance of one credit card to another that has a much lower interest rate. You might have to pay a small fee when you make the transfer, but you will be able to be free of debt much faster by not having to pay a ton of interest.
Need More Advice on Debt Relief Strategies?
We know that struggling with debt can be frustrating and sometimes even debilitating. Being aware of these debt relief strategies is the first step in resolving your debt. However, if you are still struggling to find a strategy that works for you, our team of debt settlement experts can help.
Ready to make your debt disappear? Contact us today to get a free debt analysis and consultation.
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.