Getting into debt can be easier than you might like to admit. Whether you’re young and finally have the opportunity to use credit or your eyes have just recently been opened to the possibilities of making a purchase and paying for it later, it doesn’t take long for an abuse of credit to turn into a mountain of debt. And while you may be feeling like your debt can never be completely paid off, there are things you can do that will help you get out of debt quicker than you ever imagined. To show you how, here are three tips that can and will help you get out of debt quickly.
Pay More Than The Minimum Payment Each Month
If this is your first go-around with debt, you might be looking at your monthly payment as something totally manageable for yourself. But upon further inspection, you’ll come to realize that simply paying the minimum monthly payment won’t really help you get out from under your debt very quickly. So to save yourself both time and money in the long run, Holly Johnson, a contributor to TheSimpleDollar.com, advises to always pay more than the minimum monthly payment. This will be beneficial in zeroing out that debt faster as well as paying less on the debt due to saved interest.
See If You Can Lower Your Interest
High interest rates can be a real killer for those looking to quickly pay off debt. As soon as you feel like you’re making a little headway, you’re hit with the interest, which bumps your total amount owed back up. Luckily, there are some things you can try that can lower your interest rates. Some tactics you might want to use, according to Gerri Detweiler, a contributor to Credit.com,are loan consolidation, transferring debt to a lower interest rate loan, refinancing, or simply asking your creditor for a lower rate. You never know if you don’t try, so don’t let the fear of being turned down for a lower rate stop you from trying to make your debts easier on yourself.
Find Ways to Earn More Than You Spend
One of the most common sense ways to get out of debt quickly is to pay as much on your debt as possible. However, if you got into debt because you truly couldn’t afford something you needed, there is likely a bigger issue going on with regards to your finances. That’s why, to beat the debt cycle, you’ve got to find ways to earn more than you’re spending.
David Weliver, a contributor to MoneyUnder30.com, shares that some things you could try to lower your expenses and raise your income include cutting out needless spending, getting a second job, finding a higher paying job, moving to a less expensive area and more. If you’re able to bring in just a little extra cash each month, that will go a long way towards helping you get over your debt.
If you’re having trouble getting out of debt, consider using some of the tips mentioned above to help you overcome this obstacle in record time.