6 Tips for Getting Out of Debt Quickly
Are you struggling with debt? There are few things more stressful than having debts hanging over your head. But you’re not alone. Most people today are struggling with debt — and they just need to find a way to manage it. Here are a few tips for getting out of debt quickly and moving on with your financial future.
1. Pay off Your Highest Interest Debts First
Often, your high-interest debts are continuing to grow in size while you’re paying off other bills. You should focus on your high-interest debts before your low-interest ones, so you can reduce the amount of overall interest you’re paying.
Of course, there’s some debate about this. For some, there is a psychological advantage to paying off your smaller bills first because that means that you have fewer bills to worry about. You can weigh the benefits of both methods to decide what works best for you.
2. Get a Second Job
A second job or side hustle can give you the money to pay off your debts fast. Imagine if you got a part-time job making an additional $500 a month and used that solely toward your debts. You would be able to pay them off much faster.
Not everyone has time to physically go to a second job. But there’s also a lot of work that can be done online, such as personal administrative work or customer support.
3. Take Out a Personal Loan
Do you have credit card debt? Credit card debt can be as much as 25 percent interest a year, which means you’re losing a quarter of the money that you’re making and paying toward that debt. But if you take out a personal loan at 5 percent rather than carrying that credit card debt, you can pay it off much faster.
A personal loan is an unsecured loan, so it still will have a relatively high interest rate. But sometimes, you can get a refinance on your home (cash out, which gives you money), which will be at a lower rate because it’s secured.
4. Transfer Your Debts
You can sometimes transfer debts from one card to another. Let’s say you have $10,000 on a credit card for 20 percent interest. You can transfer that to another card that has 0 percent interest for 12 months. That will make your payments have a greater impact, eliminating more debt in each payment than you would with the original card.
5. Sell Some Items
Need cash to settle your debt? Sell some things; you can sell household items in a yard sale or through social media, sell an extra car, or even consider selling your home. And about selling your home…
6. Sell Your Home
Selling a home or refinancing a home can be a fast, easy way to modify your debts completely. Sometimes your home is the reason you’re in debt. If you’re ‘house poor,’ that means that your home is too expensive. Rather than remaining saddled with an expensive home, you can instead just get rid of your home — and get rid of all that debt.
While selling your home is a momentous decision, it’s often the best decision. If you’ve gotten into debt, it’s very possible that you need to downsize your property. Rather than having to worry about making the mortgage every month, you can instead just move on. Debt is never easy to manage. But you can do it. One of the easiest ways is through selling your home. You can sell your house fast and hassle-free with a real estate investor. In the Houston area, Contact Terra Home Solutions online or call us at 832-843-8731 to find out more.