Friday, May 22, 2015, AM | 1 Comment
Getting out of credit card debt is often a tedious process that takes a lot of time. Once you’ve decided to commit to getting out of debt, it can be hard to do the calculations and realize paying it all off will take three or five years at your current rate of repayment.
When this feeling hits, it’s time to think about some faster ways you can pay back your loans and get on with your life!
Many financial experts stress it’s the little things you spend money on that you need to cut back on to increase your debt payments.
Cutting out a daily trip to the coffee shop, or ordering pizza and wings on Friday up can give you some extra money, but it can leave you feeling deprived.
Instead, look for ways you can rearrange your budget to find even bigger chunks of money.
For example, if you’re able to move in with your parents for a year, or take on a roommate to pay half the rent, you’ll have hundreds more each month to pay toward the debt.
Cutting cable, switching to a cheaper grocery store, and carpooling can all have similar effects.
Finding ways to get more money can also bring your debt payment down.
Search your home for all the little things you have, but don’t really use and have a garage sale or sell them on eBay or Craigslist.
You might even take them to a consignment shop and get a lot of cash back.
Remember bigger things could get you more money, but small things can add up too.
You could also think about taking on a second job and using all of that income to pay off the debt.
Lump Sum Loans
In many cases, getting a lump sum loan can really help bring the credit card debt down.
In this situation you take out one loan, usually one with a low or zero percent interest rate, and pay off all of the smaller ones.
Then, you only have to deal with making one payment per month, and you’re saving a lot of money on interest payments.
Places like myLumpsum.com can also help you set up a structured settlement for your payments to give you a leg up.
Aside from the ease of payment and savings, seeing all of the debt in one place can be a great motivating factor.
You’ll want to pay more to see it go down faster.
Having a lot of credit card debt can weigh you down. If you want to stay focused on paying off your debt, think about how freeing it will be to not have to make payments once everything is paid off.Facebook.com/doable.finance
- Jun 24, 2015: Getting Out of Debt Strategies - Common Sense Curation