Debt is enemy number one for anyone wanting more financial freedom. So if you’re looking for methods to eliminate debt fast and reduce stress, here are five things you can do that most people overlook.
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Negotiate
You don’t have to take your interest rates lying down. Many are negotiable if you call your creditors, especially if you have a solid payment history. Even a small reduction can save you significantly and make it easier for you to pay off debt faster.
The worst they can say is no, but you’d be surprised by how often they’ll say yes! Try this with your highest interest rates first; they’ll have the most impact. But we also recommend calling those with lower interest rates because every little bit helps!
Sell Your Stuff
Garage sales are common, often used to help clear your home of clutter. But what if you used the earnings from selling things to pay down your credit card debt? This is one of the best one-two punch options for those looking to earn extra income but don’t have the time to take on a second job.
A few hundred dollars tacked on to your monthly minimum payment can do a serious dent in a high-interest card or even pay off a smaller card entirely.
Consider a Debt Management Service
If you’re struggling with debt and don’t know where to turn, there are non-profit credit counseling agencies that can map everything out for you. They’ll negotiate with creditors on your behalf to help you get lower interest rates and consolidate your debt into a single monthly payment.
This is an excellent option if you need fast results but feel overwhelmed by your debt; these experts can help organize things and give you the confidence to move forward.
You can check out Mitigately and see if that works for you!
Redirect Your Spending
You know you go out to eat too often and want to cut back on it. But what are you supposed to do with the extra money you’ll save? You could put it into a savings account (which is not a bad option if you don’t have an emergency fund).
Alternatively, you could challenge yourself to cut your spending in this specific area by half and funnel any savings directly into your credit card payments. This is often a better option than saving money in an account because it means you won’t have to pay as much in interest.
Map Out Your Payments
It’s hard to see the light at the end of the tunnel when dealing with lots of credit card debt. Mapping out your payments to see what you can feasibly do is the flashlight you need. Create a debt repayment calendar to help you visualize not only when you’ll make your payments, but when you’ll be done making them.
Doing this can also help contextualize your spending and give you some peace of mind knowing that you’re making progress, even if fully paying off debt is a few months or years away.
