Defeating Debt: 5 Ways to Get Serious and Get Out of Debt This Year

If you have a lot of debt, you probably spend a lot of time worrying about it. The first step in defeating debt is to make the decision to get rid of it. Once you make this decision, there are five ways to get serious and get out of debt this year.

Increase Your Salary

One way to get rid of your debt is to increase your salary. Start by talking to your boss about the possibility of a raise or of working some overtime. If these options aren’t possible, it may be time to find another job that pays better. A final option is to look for part-time employment to supplement your current income, which you could use to pay off your debt.

Make Extra Cash

Another way to get out of debt is to make extra cash, and there are plenty of ways to do this. One idea is to sell your unwanted possessions, which you can do at a place like Deerfield Pawnbrokers for a fair price. If you have a particular talent or skill, use it to earn extra cash. You might make crafts to sell, teach guitar lessons, rent out your car, or mow lawns to earn cash.

Call Your Creditors

Take the time to call your creditors. When you call, get the exact amount of money you still owe. Then, ask if there is any way to lower the interest rate on your debt, so you can pay it off faster. Some creditors are willing to work with you if they know you are trying to pay off the debt. You may even be able to set up a payment plan that works for your budget.

Consider Consolidating Loans

If you have outstanding debt from several different lenders, you might want to consider consolidating your debt. When you do this, you typically qualify for a lower interest rate, so your monthly payment is lower than paying multiple creditors at different interest rates. Once all of your debt is consolidated into one payment, you can see exactly how much you will owe each month and work that into your budget.

Create a Monthly Budget

Finally, create a monthly budget. Account for every dollar that you earn and every dollar that you spend during the course of the month to figure out where your dollars are going. Then, you can allocate funds for different categories each month: mortgage, automobile, utilities, entertainment, and debt payment.

You can get out of debt this year with a few simple strategies. The trick is to be serious about your money.

Tags: Budget, Debt consolidation

Category: Debt