If you feel like you’re drowning in debt, know that you’re among the 77 percent of Americans with at least some of it to worry about.
From unexpected car repairs to loans for homes and cars, you might feel that you can’t escape debt (well, unless you consulted an insolvency practitioner before it’s too late!) While you may need to rely on borrowed money from time to time, you should find ways to pay it off as soon as possible and minimize costly interest charges.
Use these seven tips to learn how to be debt-free.
1. Adjust Your Budget
To determine how much you can put toward debt payments, look at your budget. Make sure that you only spend money on essential items and bills and try to cut back on extras like entertainment. When looking at money left over, consider how much you can comfortably allocate to savings and debt payments.
2. Make Larger Payments
Paying larger payments will help you escape your debt faster, especially if you put the most money toward debt with high interest. While paying at least the minimum for all debts, find the one that cost you the most in the long run and pay as much extra as possible. Once you escape that debt, try the same strategy with the next costliest debt.
3. Consider Debt Consolidation
Sometimes you may find a professional debt consolidation service like Debthunch best for your situation. So, is Debthunch legit for helping you out of debt? This service is indeed legit and works by helping you combine your debts to a single payment and reduce your interest.
4. Sell Unwanted Items
You probably have a lot of unused items like books, clothes, gadgets, and housewares sitting around your home. So, consider putting some valuable items on eBay or selling them through a yard sale or local online marketplace. Use your earnings to tackle those debts!
5. Find a Side Gig
To get some extra cash to put toward debt payments, you can boost your income with an extra job. In addition to regular part-time jobs at places like stores and restaurants, you can consider gig work like Uber, Grubhub, and freelance projects.
6. Seek Ways to Cut Interest
Consider contacting your card company to find out if you can get a reduced interest rate or transfer a balance. Both options can help you get out of debt faster since you can save a lot on interest that otherwise would make your debts keep growing.
7. Watch What You Buy
Even if you feel like you have no extra money to put toward your debts, consider your buying habits. Only buy what you absolutely need and put aside plans for luxury items like computers or new cars.
Now You Know How to Be Debt Free
As you can see, you have many ways to either boost your income or cut spending so that you can start tackling your debt. The key is to be patient and keep working at it.
Consider making a debt tracker that will list your accounts and balances. This will make it easier to see your debts start to fall and will provide some good motivation.
After learning how to be debt-free, go have a look at our other personal finance content.