Today, it’s perfectly normal to be in some level of debt – whether it’s a credit card that you use for emergencies, a loan that you took out to buy a new car, or even the mortgage for your home.
Borrowing money has become a regular part of life, and for the most part, the ability to borrow money when needed can be great for many people. However, taking out credit does come with the risk of being unable to pay it back in the future; many financial products such as loans come with a commitment to repay a certain amount each month for a set period of time, which could become difficult to keep up should your circumstances change.
If you’re in debt and want to become debt-free again as quickly as you can, to save money and finally stop worrying about making repayments, here are some of the best ways to do so.
Tip #1. Get a Debt Consolidation Loan
If you owe money to several different creditors then making sure that you have enough money to cover multiple creditors, often at different times of the month, can be a stressful situation by itself. Along with that, owing money, even if it’s just a small amount, to multiple lenders can have an adverse effect on your credit rating and make it trickier for you to borrow more money in the future if needed.
If this situation sounds like yours, you might want to consider taking out quick loans, such as a debt consolidation loan; this can then be used to pay off all your current debts in full and close the accounts. Once this is done, all you’ll need to worry about is making the one single monthly repayment for your consolidation loan, which isn’t just less stressful for your budget – it can also save you money since you won’t be paying interest on multiple lines of credit. Personal, quick loans that you can find more information about here are the ideal product for the job if you’re in a small amount of debt to several different creditors.
Tip #2. Pay More Than the Minimum
Certain types of credit, such as credit cards or quick loans, will have a minimum payment amount that is required each month – it’s up to you whether you are going to simply pay the minimum, or put a little bit more towards getting rid of your debt.
Although paying the minimum will keep you out of the red and eventually pay your debt off over time, it’s certainly not the quickest of ways to become debt-free. Because of this, it’s a good idea to go over your budget and determine if there are any debts that you have where you can pay a little more than the minimum each month, to help you pay them off faster.
Tip #3. Organise Your Debts
If you are dealing with multiple lines of credit from several different lenders then organising your debts from smallest to largest can help you to cut them down significantly. Start with the debts where you owe the least, such as payday or quick loans and focus on paying these off, then work your way up the list to the highest.
Since the smaller debts will be easier for you to deal with, it’s less stressful than simply viewing all the money you owe as one big debt. Once the balance has been paid off on one debt, you can then put the money that you’d pay towards that to your larger debts. Don’t forget to continue making at least the minimum repayment on every other line of credit to ensure that you stay in the clear.
Tip #4. Make Some Extra Money
Today, the good news is that there are plenty of things that you can do in your spare time to make some extra money that you can put towards paying off your debts. If you have worked out a budget from your monthly wage and have little left after paying your priority expenses, it’s a good idea to consider if there’s anything that you could do on the side to bring in an extra income.
For example, you could do tasks such as dog walking, babysitting, gardening, cleaning, or even helping with shopping for your family, friends, and neighbours for a little bit of extra cash that can go towards getting you debt-free. Or, do you have a skill that can be used online? Use your spare time at home wisely as a freelance virtual assistant, content writer, graphics designer, or even a social media manager to bring in some extra cash.
Being in debt can be a stressful experience. However, paying it all off and enjoying a debt-free life once again doesn’t have to be difficult. Would you like to add any tips of your own? We’d love to hear from you in the comments.
