The crushing weight of debt can feel like a nearly impossible thing to get rid of. Student loans and credit card bills seem to add up out of nowhere, and suddenly, you feel completely out of control with your expenses.
Here are six tried-and-true ways to get ahold of the reins again and pay off your debt faster and more efficiently.
Create a Custom Debt Repayment Plan
Before you start slinging cash at your debt, create a structured plan that you can actually stick with. Start by listing all your debts, including the amounts owed, interest rates, and minimum monthly payments. Once you have that down, you can choose either the snowball or avalanche methods.
The snowball method focuses on paying off small debts first, while the avalanche tackles debt with the highest interest rates. Both are excellent approaches, so whichever you choose just make sure you stick with it!
Cut Unnecessary Expenses
If you want to pay off debt quickly, you’ll have to start by examining and editing your spending habits. Cutting unnecessary expenses frees up cash that you can direct toward debt. If you’re someone who loves a subscription they never use or spends way too much on impulse buys, we’d recommend starting here; cutting back on these expenses is a fast, albeit challenging, way to find more money for bills.
Bring In More Money
This seems obvious, but sometimes, the easiest way to pay off debt is simply to boost your income. If you aren’t sure where to start, try your hand at selling unused items. This is usually the simplest way to get money fast. But the most lucrative are often freelancing or getting a part-time job; just remember to balance your time so you don’t burn the candle at both ends.
Read More: 30 Ways To Make Money on the Side
Negotiate Lower Interest Rates
Lowering your interest rates can save you a significant amount of money over time, allowing you to pay off your debt faster, so you aren’t just treading water. Contact your credit card companies and lenders to inquire about lower interest rates. Be polite but firm; remember, you’re technically a customer, and there’s a good chance they can accommodate a request in some way.
Use Your Windfalls to Your Advantage
Instead of splurging on something when a windfall comes your way, make a plan to allocate (at least part of it) toward your debt. Using a portion for fun is always a good idea, but you’ll feel a lot better by putting the majority of it toward credit card bills. Balance in all things, as they say!
Keep Yourself Motivated
Paying off debt can feel like a marathon, not a sprint, and it’s easy to lose motivation along the way.
To keep your spirits high, track your progress and celebrate your milestones (responsibly). You can use whatever you want to keep track of things: charts, spreadsheets, and apps all work well, so pick whichever you like. Set specific milestones you can target so you can visualize your progress and pat yourself on the back when you achieve them.
