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:
- Start a freelance business
- Take advantage of free cashback websites
- Sell items on eBay
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.
==> Here's more information on what cashback websites are the best options to making hundreds of extra dollars monthly
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.
==> Visit CompareFirst here to see your best lending options
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
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Great advice, and great site!
I’ve started to apply all of these things now, but I still have a bunch of questions.
First, I use a lot of different money saving apps, like Ibotta and Inbox Dollars – I downloaded Spent, I’ve heard it’s similar to Dosh, but I have not succeeded with it. It has the option of getting cash back, and does so by tracing credit/debit purchases, but I’m finding that everywhere requires chip reading, instead of swiping debit cards, and thus it doesn’t qualify for cash back. Is there a way around this?
My website is about building diverse income flows and residual income, similar to yours, and I wondered what your top suggestions are for investing. I’m young enough that riskier investing with between 10% and 20% is still reasonable, but I wondered what you think of using Indexed Universal Life as a retirement investment. I’m licensed in insurance, and I write it, but I’m curious about your thoughts if you’re familiar.
Hi Jordan, thanks!
Most banks should be able to offer you a card with a chip, in a lot of countries it is required that they offer it. So depending on your location may determine whether your bank will have the chip cards.
Concerning the universal life insurance, I am actually very familiar with universal life insurance. The one thing people often overlook with an IUL is the cost to keep it open in force. There are great returns and potential guarantees often times, but there are also fees associated with the cost of life insurance. You need to be able to fund the policy with enough money for a long enough time for the numbers to work out in your favor, otherwise the fees will eat into your cash value and your overall returns, resulting in a potential loss if not funded properly.
Having said that, I am an advocate of life insurance, both whole life and term life. Each has its place and benefit, and when used properly can be an excellent hedge against a down market.
I’m personally very into investing with peer to peer lending platforms. Its super easy, and the returns have been fantastic (although may be different for others, no guarantees here). Personally i’m getting over 15% return currently as of this response. Take a look at my post on peer to peer lending here for some more information.
Hope that helps out some! Best of luck and thanks for reading! Keep in touch.