Unless you’ve got endless amounts of funds at your disposal, or income from a family of wealth, you’re probably going to experience some form of debt. Debt in layman’s terms is something, typically money, that is owed or due. Common forms of debt consist of student loans, credit card bills, medical bills, car loans, and more. While debt seems like quicksand that is impossible to escape from, it is actually possible to remove yourself from the debt trenches. If you’re in the middle of planning your way to becoming debt free, the tips below should help you get there. With no further ado, here are four ways to get out of debt fast and efficiently.
PAY MORE THAN MINIMUM
Most forms of debt come equipped with a required minimum payment for individuals to pay each month. That minimum pay is usually the lowest available amount that debt collectors will accept. While a minimum payment may seem convenient, if you’re one of the ambitious individuals looking to pay debt off quickly, then you’re probably going to need to pay more than that. When you pay more, dollars shed off faster and the process of paying the debt completely off goes smoother.
THROW A SNOWBALL
One of the most effective debt-paying methods out there is the snowball method. The snowball method drives individuals to expedite their debt-shedding process by paying large amounts to smaller balances and paying the required minimum on the larger balances. This in return will allow one to get rid of the small debts and give the opportunity to focus on big debts. The name of the game with this method is to snowball your extra money toward your debt until you’re eventually debit free. While it may sound difficult, it certainly is effective. Try it.
GET YOUR SIDE HUSTLE ON
Side hustles are the new wave when it comes to putting extra funds in your pocket. The new rise of hustles like Uber has drivers everywhere jumping at the opportunity to become a part of this easy money-making company. Literally, all drivers have to do is drive individuals to their destination and the bucks rake in. They’re even able to get their money at any time. If Uber isn’t your thing, a part-job or monetizing your talent or passion could be good alternatives. Whatever the side hustle is, the objective is to bring in the extra cash to pay off debt both big and small.
CHANGE YOUR LIFESTYLE
To build wealth, you are going to have to change your lifestyle. To truly live the life you want to live, your expenses have to be low at some point. It’s almost impossible to shop ‘til you drop, go on week-long vacations, or eat at the best restaurants around with loads of debt. Getting rid of expensive habits will be essential on your road to being debt free. Just think about it, is a $100 steak really worth it when you owe $15,000 on your credit card? Of course, everyone wants to continue to enjoy all of the great things in life, and that’s totally possible, but when you’ve got debt that needs to be paid off, it’s probably not the most ideal choice. Yes, it is a sacrifice, but it’s also an investment to a better credit score, more money at your disposal, and a debt chart that doesn’t have much on it. Bad money behaviors result in bad debt. Change your lifestyle and stay focused.
Paying off debt is a glorious feeling; in fact, it’s like something you’ve never imagined. You’ll find that your mailbox isn’t stuffed with bills anymore, your bank account isn’t always approaching its limit, and you will have funds at your disposal again. You will also have money to invest in your future goals and build wealth. Whether you’ve had a dream to own a convenience store, or you want to own a stake in a restaurant, the money you used for your debt will help your dreams come true. There is no magic pill to paying off debt and making smart investments; it takes hard work and patience. You’ve got it though. Now, go and pay off that debt!