Are you dealing with a large amount of debt in your life?
If you are, then you might feel like you are never going to pay off what you owe and will be encumbered by it forever.
The good news is there are ways to pay off debt fast. Follow these five simple tips to get started.
1. Stop Making the Minimum Payments
If you’ve ever paid attention to your credit card bill, then you’ve most likely noticed there is a payment scenario. It details what happens if you make just the minimum payments each month. It shows how you’ll spend many years paying off a small balance and almost doubling or even tripling the amount you owe.
On the other hand, it lays out how paying even a bit more than the minimum cuts the time you spend paying off that debt, plus the amount of your interest payments will be lower.
To get out of debt faster, make it a habit to make more than minimum payments any chance you get.
2. Sell Excess Possessions
We all have a habit of holding on to material possessions we don’t need. If buying too many things is what got you in debt in the first place, you might have a bit more extra cash sitting at home that you don’t even realize.
Take a look around your house and figure out what stuff you can sell. For example, a lot of people sell their clothes for cash either at a store or over the internet.
You can also sell furniture that has outlived your décor. Perhaps you have older video game consoles or gold scraps. The point is that these items can turn into cash that you can then put toward your debt.
3. Snowball Your Debt
Have you heard of the snowball method to get rid of your debt?
This method is quite simple and many people use it to get rid of debt, especially with their credit cards.
So what is the snowball effect? First, you have to keep making minimum payments on your large credit cards. Then you need to make more than the minimum payments on your other smaller balances.
When you finish paying off the smaller balance, then you can take that money and put it towards the next balance, and so on. The idea is you’ll be able to put more and more money towards your largest balance as you pay off your smaller ones.
4. Try a Side Gig
If you’ve accumulated debt and find yourself living paycheck to paycheck, you might be able to benefit from a side hustle.
A side gig will provide you with extra cash and help you manage your debts by giving you more cash to put toward payments.
There are many types of side gigs you can do, such as freelance writing, ridesharing, being a virtual assistant, and more. Chose one that works with your schedule and then earmark those funds for additional debt payments along with the ones already in your budget.
You don’t have to be confined to only one paycheck when you can get money on the side.
5. Work with an Experienced Debt Settlement Firm
Choosing a debt settlement company may be the best way to reduce your debt, especially if it’s over $10,000. While there are many debt settlement companies out there, you need to choose one that has experience in the field and can carefully explain all your options.
Remember, working with a debt settlement company is going to take time, but they can be the key to financial freedom for those who are drowning in debt. They’ll go over your total debt and determine your options. Once they understand your situation, the company will begin the process of tackling your debt one account at a time.
Using a debt settlement company can be an option to avoid bankruptcy while at the same time providing you the peace of mind to know that you’re working on reducing your debt instead of just ignoring it and hoping it will go away.
Pay Off Debt Fast: The Bottom Line
If you want to pay off debt fast, following these 5 steps should give you a head start into a debt-free life.
Try a side gig, make more than minimum payments, sell your extra stuff, snowball your debt, and consider working with a debt settlement company.
Are you ready to live debt free? If you are, contact us today to learn how you can settle your debt today once and for all.
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.