If a debt is dragging you under, it’s high time to do something. You might want to start by searching for quick ways to repay it. Here are a few ideas to help you with how to pay off debt fast.
Before you begin paying down your bills, take stock of them all to calculate how much you have. Knowing the types and amounts of your obligations – credit cards, student loans, or other lines of credit — can help you establish a payoff plan that works for you.
How To Pay Off Debt
Before you start researching credit card debt relief programs, check out the following debt payoff strategies. You may be surprised by how fast the right combination of them can help put you in the black.
Establish a Budget: This may seem like an unoriginal idea you’ve heard millions of times, but it is vital that you make a budget. Perhaps a personal finance tool could help, or you can make your own spreadsheet that includes your monthly take and expenditures.
Erase the Priciest Debt First:Arrange the interest rates on your credit cards from highest to lowest. Then rather than paying an equal amount on each debt, make minimum payments on all but the one with the highest rate. Put all of the money you have left toward that one until it’s paid off, then work your way down through the rest of them doing the same thing.
Pay as Much as You Can— as Often as You Can:Try to pay as much as you can on your debt. Paying the minimum on all of them – about 2% to 3% of the balance – just prolongs a debt payoff tactic.If you can, make weekly payments instead of monthly, or double your payments.
Do a Balance Transfer:If you have a high-interest credit card that you believe you could pay off in a couple of months, consider shifting the debt to a balance-transfer card that offers zero-percent interest during a promotional period. Doing so could net you hundreds of dollars.Note, though, if you don’t eliminate the debt before the introductory period expires, you’ll get hit with a higher interest rate.
Quit Spending: Your spending habits are likely what got you in trouble in the first place. If you can’t resist temptation, but still want to get yourself in better financial shape, you may need to do something drastic such as leave your credit cards at home when you go shopping. Continue to do this until you have your spending under control.
Put Work Bonuses Toward Debt:If your employer gives out bonuses around the holidays, say, or during the year, resist using that money on a “want” and instead put it toward your debt. Ultimately, you’ll be glad you did.
Erase Credit Card Info from Online Stores:It’s all too easy to keep clicking on the “buy now” button when you have your credit card data on store sites to facilitate check out. So, take the plunge and clear that info.
Sell Stuff:Instead of “re-gifting” or simply letting an unwanted item go unused, why not put it and any others on eBay or Craigslist? Do some homework first to be certain you’re offering the items at a reasonable price. Any proceeds should go toward your debt.
Make New Habits:Take time to consider how you spend money. Ask yourself what you can change without giving up too much of your lifestyle. Just bagging your lunch each day could save you a bundle.
Reward Your Success: If you view paying off debt as something punitive, you won’t be enthusiastic about it. To keep yourself motivated, do something nice for yourself — within reason. For example, you’ve wanted to get away, but instead of a weeklong vacation, reward yourself with a weekend camping trip.
Now that you know how to pay off debt fast, get going! Work your plan and stick to it. Before you know it, you’ll be on solid financial footing.