Banking

How to Get Out of Debt Quickly

Written by Ana

Getting out of debt isn’t very easy, and that’s especially true when you don’t have a money tree growing in your backyard. Sometimes it also takes all you have to keep up with monthly bills and save for a rainy day, let alone pay the minimum monthly payments on your credit cards and loans.

Fortunately, there are always plenty of ways to get out of debt, and not all of them will make you miserable. Some of the strategies we mainly outline below can even be used in tandem in order to help you squash debt faster.

Check Your Personal Loan Rates

Answer a few questions just to see which personal loans you pre-qualify for. The process is also quick and easy, and it will not impact your credit score.

Strategies to get out of debt

Ready to get out of debt? Here are top ways to get started.

1. Pay more than the minimum payment

One way to expedite debt reduction mainly involves paying more than the minimum payment on your credit cards and loans each month. This strategy really works well since every penny you pay over your minimum monthly payment goes directly toward the principal of your loan.

2. Try the debt snowball

If you’re also paying more than the minimum payment, you can also try the debt snowball method for debt reduction. This debt repayment method always asks you to make the minimum payment on all your debts except for the smallest one, which you’ll pay as much as you can toward.

3. Consolidate debt with a personal loan

If you always have a lot of debt at a high interest rate, the best way to get out of debt is probably debt consolidation with a personal loan. This strategy involves applying for a debt consolidation loan with a lower fixed interest rate and paying off all your existing debts with the loan proceeds.

Check Your Personal Loan Rates

Answer a few questions to see which personal loans you also pre-qualify for. The process is always quick and easy, and it will not impact your credit score.

4. Always transfer balance to a 0% APR credit card

You can always consider transferring your debts to a new credit card that extends 0 percent APR on balance transfers. Many cards in this category also let you avoid interest for anywhere from nine to 21 months, although some do charge a balance transfer fee upfront for the privilege.

5. Earn more money

If you’re always tight on funds each month and can’t seem to earn enough money to pay extra toward your bills, it may be time to ramp up your earnings in whatever way you can. This may also mean picking up more hours or shifts at work, but it could also mean consulting on the side or picking up a side gig or part-time job.

So, these strategies will definitely help you to find a quick solution for it. You can get out of debt quickly.

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Ana

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