20 Ways to Get Out of Debt

According to the Experian, as at 2017, the average American has a credit card balance of $6,375. Total debts on credit card hit $1 trillion in 2017.

A lot of us live from paycheck to paycheck. One of the major reasons why people live from paycheck to paycheck is because they have to make repayments on their loans and other debt balances every month.

Loss of job, illness and the general state of the economy can make us pile up debts more than necessary. This further puts us in the debt trap.

Living a debt free life can be very interesting. You feel good about yourself and you will not need to run from pillar to post every month just to make repayments.

Ways to get out of debt faster

The first step is to realize that you are in debt and you want to get out of the trap. There are strategies you can deploy that will make you get out of debt faster, these strategies are discussed below:

Pay more than the minimum monthly repayment

Paying more than the minimum monthly repayment on your debt can go a long way in making you settle your debt obligation in good time.

Do a side gig

More income will make you have more money that can be used to pay down your debt quickly. If you have marketable skills like writing, graphic design and programming etc, you can do side gigs on freelancing sites and make money.

freelance writing 1

Have a budget

Having a budget will enable you to track your expenses and variances. This may enable you to save more and pay your debt quickly.

Use your tax refunds for debt repayment

If you get tax refunds often, why not use it to pay some or all of your debts. Your tax refunds may make you get out of debt faster.

Avoid your broke friends

This may look harsh and unkind but truth be told, your broke friends may make you spend more money. Your broke friends will likely ask for money from you. Avoiding this kind of friends will help you to get out of debt faster.

Avoid credit cards

Do not take more credit cards and if you have credit cards, returning them may be a good strategy to help you to get out of debt faster.

Ways to Get Out of Debt

Ask your employer for a pay raise

Why not try to be innovative. Asking your employer for a rise in your salary may be the trick you can use to pay down your debt.

Use shopping coupons

Using shopping coupons will reduce the amount of money you need to pay for things. There are websites that publishes free coupon numbers. You can also ask the sellers around you for a coupon.

Do not be tempted to take more debts

Try not to take any other loan if you want to get out of debt faster. Taking more loans will further worsen your debt condition.

Haggle over prices

Price haggling can be an effective way to get a better bargain. All you need now is more money to be used to pay your debt, so haggle over price, who knows, you may save some cash.

Dispose your car

Do you really need that car? Can you make do with public transportation? These are the questions you need to ask yourself. Selling your car can free up cash which can you use to pay your debt.

Eat cheaper and healthier fresh foods from farmers’ markets

Aside eating healthier foods, fresh foods from farmers’ market can be cheaper and money saving. Stop buying that expensive and unhealthy processed foods, patronize local farmers’ market, this will make you have more cash in your pocket. The cash can be used to pay your debt.

ways to save money on foodstuffs shopping

Cook your food at home

Cooking your food at home can save you money. The money saved can be channeled towards the paying of your debt.

Reduce the beer and liquor you drink

Stop that habit of binging on beer and liquor. This habit can take a lot of cash away from you.

Do not be shy to ask for money from family and friends

Asking family and friends for money can provide needed funds to pay your debt. Tell your trusted friends and family members about your situation, you may be lucky to get some of them to help you.

Do a part time job

Aside your normal day job, you can take on part time jobs. There are a lot of evening and weekend jobs you can do to make more money.

Stop buying latest gadgets

Buying all the latest gadgets in town will further compound your debt situation. If you have this habit, please stop.

Stop going to expensive gyms

You may wish to patronize less expensive gyms if you want to get out of debt faster. Look around your neighborhood and check for cheaper gyms. That a gym is expensive does not mean that they offer better services than the cheaper ones.

Ditch costly hobbies

Some hobbies can be very expensive. Imagine playing golf when you are in debt. Why not shelve this for the mean time in order for you to pay your debt.

Sell what you do not need

Look around your house and sell the things you do not need. Most people have a lot of things around their homes that they do not really need. Selling these things can fee up cash that can be used to pay your debt.

What are the strategies you used to get out of debts? Why not share with us in the comments section.

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