Paying off your debt doesn't have to be complicated. That's why I've come up with these 3 easy ways to payoff debt quickly. Once you find out what they are, you'll realize it's not rocket science, but rather a simple equation and process that is often clouded by the emotional stress of having debt in the first place.
Whether you have a mountain of debt and on the verge of bankruptcy, or whether it's that small credit card you can't stop using but know that you need to stop adding a balance to, these 3 easy steps to paying off debt will help you start the process.
3 Quick and easy ways to payoff your debt
The following strategies to paying off debt is mainly targeted toward paying off bad debt. In other words, credit cards, line of credits, student loans, personal loans, or anything not secured by a home or valuable asset.
Strategy #1 – Increase your income
I know what you're thinking. “I'll just go to the ‘increase my income bureau', right next to the pie in the sky”… Hear me out first.
First off, isn't it common sense that if you were able to increase your monthly income, you would be able to payoff your debt faster? What if you were able to create an extra $100 – $500+ of extra income each month? Don't you think that would alleviate some stress and accelerate your progress toward paying off your debt? Of course!
So, how do you increase your income? Aside from asking for a raise at your current job, there are multiple ways to create easy passive income streams without any money to start up. All you need is a desire to make money, have a passion or expert knowledge in a particular industry, and the ability to trust in a proven process that has helped many grow a full time income with part-time hours.
Some of the best ways to make extra money on the side are:
The list is endless! Here is a list of 20 ways to make extra money on the side.
Strategy #2 – Decrease your expenses
Did you know that there is literally hundreds of free money available to anyone willing to jump on the bandwagon? Ever heard of cashback websites? Cashback websites partner with thousands of retailers, than send customers to these retailers and get paid a commission of any sales made by their referred customers.
These cashback websites than turn around and pass on that commission right to your bank account! Companies like Spent and TopCashback, or companies like Swagbucks, all give you free access to up to 20% cashback with major retailers like Walmart, Amazon and Ebay.
Strategy #3 – Consolidate your debt
Debt consolidation is simply adding up the balances of all your credit cards, loans and line of credits, than taking out a loan to pay all the others off. This is beneficial for a few reasons.
First, most likely your interest rate you are paying on your credit cards is in the double digits. By combining all your loans into one loan gives you an overall better and lower interest rate, with the ease of only having to pay one payment rather than 10.
With the added savings from this you will see each month, you now have even more money that you can put towards paying down the loan even quicker! Financial freedom suddenly seems possible!
CompareFirst is a top rated lending broker that will direct you to the best possible loan based on your particular circumstance. Whether you have good credit, bad credit, lots of debt or just little debt, they do the leg work for you and show you the lender that will work best with you.
The number 1 tip to paying off debt fast
As I stated in the beginning, it's not rocket science! But often times the stress of debt clouds our vision. Don't just pick and choose which of the three above work for you, apply all 3 and maximize your potential to pay off debt that much quicker.
The most important piece of advice I could give you, is to not wait another day to paying off that debt that's been on your subconcience for so long.
What best practices have you found to be helpful when paying off debt? Post your comments below!
You might also like:
- 15 Free Budgeting Tips That Will Make You Financially Independent
- The Best Way To Save Money For Future Purchases