It may be hard to imagine what being debt-free feels like. Living your life without carrying around a mountain of debt can feel good. Paying it off doesn’t have to be extremely difficult, especially if you consider the following five suggestions.
1. Sort by Interest
Paying interest is like giving away money to creditors. You want to avoid high-interest rates, so go over your credit card debt you have until you’ve figured out which one has the highest interest rate. Zoom in on that card as much as you can until you pay it off ultimately. Make larger payments, pay twice in a month, or borrow some cash to deal with that bill. Keep eliminating cards from the highest interest rates to the lowest.
2. Consider Transfers
Creditors allow you to transfer your balance. This might be a good idea if you have a card that has a low-interest rate. Now, you must plan this out carefully. Only do this if you know you can pay your debt off quickly, or this move won’t help you out too much. Usually, the card you transfer your balance to has a low-interest rate for a limited time. If you fail to pay, you’ll end up paying that interest rate again, along with any fees you had to agree with to take this step.
3. Money Talks
You don’t want to increase your debt as you’re trying to getting out of it. The best way to do this is to remove all credit cards from your wallet or purse. Keep these locked away and rely on the money you have at hand. You’d be surprised how easy it’ll be to spend your money wisely if you do this one step. Knowing that you have no backup makes you more conscious of how you spend your money, and that’s a good thing right now.
4. Untapped Assets
Chances are you have a lot of stuff at home that could be of value to others. Most of the time, these items are collecting dust in your garage or closet. Go ahead and make use of those online stores that allow you to post your stuff for sale. Garage sales work, too, but putting items online opens you up to more potential customers. You don’t have to do much to sell online other than taking a few pictures and make sure you’re ready to answer questions if there are any. Be sure the money you make from your belongings goes towards the debts you’re trying to get rid of.
Most folks get a bonus at work at some point. These are great, and you’re probably pretty excited to treat yourself with these bonuses. Well, it may not feel as good, but for now, use an end-of-year bonus to pay down your debt. You might not feel good about this until you’re done paying off your debts, but your sacrifice will be worth it. Talk to your friends and family members about your goals, just in case they were expecting a gift or two with your bonus. Your loved ones are going to understand what you’re trying to do and should support.
Taking these steps isn’t incredibly difficult and should help you get free of debt. Once you’re done, try to change your spending habits to avoid getting this position again. Debt shouldn’t cause you to stress out.
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