How can you get rid of debt? It’s a question many of us will ask ourselves at some time or another, and it might seem like there’s no way out of being in debt. However, there are things you can do to help.
We’ve brought together five easy ways to help you pay off your loans — read on to see how you can get rid of your loans sooner than you ever thought.
1. Snowball Method
If you’re wondering how to get rid of debt, and you have multiple different debts, you might decide to go for the snowball method.
Essentially, you’re paying off your smallest debt first. Make a list of every debt from smallest to largest, and pay off them in this order — keep making the minimum payments on larger debts while putting any excess money towards those that are smaller.
As your smaller loans are paid off, you can focus on the larger loans. However, by this point they’re likely to be smaller too, as you’ve been making the minimum payments, so you’ll eventually be able to pay all of your debts.
2. Debt Consolidation
This is another option. Consider guaranteed debt consolidation options, as they can give you an opportunity to keep your head above water while paying off your most pressing debts.
Not everybody will be in the right position for this, as it may not be affordable, but if you do take out one of these loans, you’ll only have one company to pay back every month, so it can be a little more manageable.
3. Side-Hustle or Freelance
Is there anything you can do to earn some extra money in the meantime? If you’d like to know how to get rid of debt fast, taking up a side-hustle or freelancing can be an option.
You could do something as simple as gardening or washing cars, or utilize various skills that you might have in your locker. Are you a writer? Why not try and find some freelance writing work on the side — check websites like Upwork and Fiverr and you might find yourself a little gig on the side.
4. Cut Your Budget
It sounds obvious, but unfortunately, sometimes it has to be done. Cut your expenses as much as you can — do you really need that premium gym membership, those nights out every weekend, and all of those streaming service subscriptions?
Be strict with yourself. Once you’ve accounted for the essentials, consider what you might be able to get rid of while you’re paying back your loans.
5. Pay Above Minimum
If you just make the minimum payment each month, it’ll take you a lot longer to pay off everything. Instead, consider paying more, as you’ll not only save on interest in the long run but will pay off your loans quicker too.
It’s not fun, but if you put the future before short-term gain, you’ll be thankful further on down the line.
Wanting to Get Rid of Debt
You don’t need us to tell you that trying to get rid of debt can be stressful. Everybody’s situation is different, so you’ll have to consider which options work for you when it comes to paying off your loans.
These are just five ways in which you can get rid of debt — be inventive. How can you both save money and make some extra money?
If you’d like some more advice or tips on organizing your finances, check out some of our other posts.