7 Tips for Getting Out of Debt Faster
In today’s world, many people struggle with managing their existing debt. It can be a large headache and debt can get racked up before you even realize it. The hardest part is developing a plan for attacking the debt and getting back on track to living debt free! The best advice is to make sure to develop a realistic plan and stick to it.
Here are a few ideas to get out of debt quicker…
1. Review balance transfer rates on credit cards
You may be able to find a credit card with a low interest rate on balance transfers. For example, GCU currently offers 1.99% APR* for 12 months on balance transfers! If you transfer your balance from a higher rate credit card, you can quickly save on interest. What are you paying in interest?
2. Payoff small balances quicker
By paying off smaller debts faster, you’ll free up more money for tackling larger debts. By knocking out the smaller debts, you’ll have fewer sources of debt.
3. Look at adding a small side job
Time is precious these days, but picking up a small side job can really help with paying off debts faster. Whether you can find a job with flexible hours that can be fit in around your current work schedule or you are able to do odd jobs or freelance work in your off hours, any extra money can help. Throw that extra money right to your loan balances and you’ll see your debt decrease.
4. Try to cut expenses for a certain period of time
Do you have cable TV? Maybe you can do without it for awhile or find a cheaper alternative. If you eat out a lot, try cutting down in that area. If you eat out five times a week, try cutting it down to two. Consider shopping at discount stores (TJ Maxx, Goodwill, Aldi, etc.) to help you save money on things you need. By finding ways like these to cut expenses, you’ll be able to save money and make larger monthly payments on your loans.
5. Pay regularly on your simple interest loans, such as car loans and unsecured loans
Have you ever tried to pay biweekly (on your pay period)? By paying more regularly, you’ll cut your total interest paid down on your installment loans. You can also consider rounding up your payments, maybe by $20 biweekly.
6. Drop expensive habits
Can you cut out daily coffee trips? Can you quit smoking? Can you commit to less nights out a month? What about cutting out shopping trips when you don’t really need anything? Dropping these habits will help you save a significant amount of money over time! All money that could be going to your loan payments.
7. Utilize online websites or other forums for selling items laying around
You might be amazed what someone would pay for that old TV stand or couch! eBay, Facebook Marketplace and garage sales are all great ways to make a little money on things that you have that are gathering dust.