Want to Pay Off Debt Quicker? Here are 5 Easy Ways
Struggling with debt and not sure how to deal with it? I can show you some simple strategies to get on top of it in no time.
1. Target the Bigger Debts First:
You might’ve heard of this method – it’s called the “Debt Avalanche”. You pay the least amount possible on all other debts, but focus on the one with the highest interest rate. Putting as much as possible toward this one helps save you money in the long run.
2. Try the “Round-Up” Payment Strategy:
Got a car loan, for example? There’s a cool way to tackle it. Apps like PayDownHero round up your transactions to the nearest dollar, helping you save without even noticing it. Those cents can add up into a sizeable chunk, helping slice down your debt faster.
3. Pay More Than the Minimum Balance:
To really make a dent in your debt, you’ve got to be willing to pay more than just the minimum balance on your statements. Especially with credit cards and their monster interest rates. But be careful, ensure you’re not stretching yourself thin. You don’t want to pay off debt just to fall into it again.
4. Change Your Spending Habits:
We’re often told this, but it rings true. The way we spend and rack up debt almost always ties back to our habits. Look at your lifestyle and separate the “need-to-haves” from the “nice-to-haves”. Remember, the 50/30/20 rule can be a real game changer when it comes to budgeting.
5. Consider a Side Hustle:
Need more money? Consider a side gig. Before you start searching, remember that overworking can take a toll on your life, so find something manageable rather than draining.
Escaping the debt cycle isn’t a walk in the park but these handy tips can definitely make it easier. Give them a try and see the difference they can make.