7 Smart Ways to Pay Off Debt Fast
When you feel paralyzed by debt, it’s hard to see a path forward. But you have more options than you think. Here are 7 smart strategies to pay off debt fast.
Eight out of ten Americans are in debt. Are you one of them?
When you feel crushed under the weight of debt, it can be hard to know how to start paying it off. However, with a smart approach, you can pay off debt fast and become free from your financial burden.
How does it work? We’ll show you 7 ways you can pay off debt fast, starting today.
1. Use the Snowball Technique
If you have multiple debts, this method is a great way to start paying them off effectively.
Start by listing your debts, starting with the smallest and ending with the largest. Then, start the snowball effect by putting as many excess funds as possible toward that smallest debt.
Keep making the minimum payments on your larger debts, but focus on the smallest balance until it is paid off. Then, you can move up to the next smaller balance.
As your small debts get paid off, you’ll have more money free to put towards the larger ones. And paying off the small ones first gives you a psychological boost that helps you stick with this strategy.
2. Pay More Than Minimum
Paying only the minimum required monthly payment can mean it will take years to fully pay off the balance.
Paying more than the minimum when you can saves on interest, and lets you pay off your debts faster. Pay as much as you can each month while ensuring that you won’t need to add to the balance.
3. Pick Up Extra Income
These days, finding a second job is as easy as picking up your phone.
From Uber to Instacart to TaskRabbit, there are countless apps that exist to help you make more money. You can choose your hours and the kind of work that’s best for you. But the best part is that you can put that extra income toward paying off your debt.
Set aside the extra money you earn and use it only for paying off debt. You’ll greatly speed up the process of becoming debt-free, and you might even learn some new skills in the process.
4. Stick to a Budget
When you’re trying to pay off debt fast, a budget is a great way to help you stick to your goals. Knowing how to make and follow a budget will also help you all throughout life once your debts are paid off.
5. Try Seasonal Work
For another way to get extra income to use for your debts, try a seasonal job. Many places hire over the summer or during the holiday season.
This is also a great way to explore other interests and have fun. From workplace discounts to new friends, having a seasonal job has many side benefits, too!
6. Sell Excess Stuff
With eBay, Craigslist, and other online stores, it’s easy to sell things you don’t use or don’t need anymore. You’ll easily be able to put that extra cash toward paying down debt. You can even do a traditional garage sale or yard sale if you have lots of old clothes, books, or movies that you no longer want to keep.
7. Ask for Lower Interest Rates
Remember, it never hurts to ask. The worst your bank can say is no.
However, you’d be surprised by how many financial institutions are willing to lower interest rates for a customer who asks. If you have paid your bills on time, they are likely to be open to the idea.
Ready to Pay Off Debt Fast?
As you can see, paying off debt isn’t a complicated or difficult process. All you need is to get strategic with your approach, and you’ll see your debts start to disappear in no time.
Ready to learn more about living a debt-free life? We’ve got the tips you need to manage your budget and stay away from debt for good – read more here.