3 Fastest Ways to Cut Your Debt
How to change your circumstances this month.
Debt is a problem for many of us. It can make you feel very stuck in life and it can stop you from moving on. Debt can also be responsible for high levels of stress, particularly if the repayments you’re making feel unaffordable because you have taken out bad credit loans or no credit check loans. However, reducing debt is not impossible, not by any means. If you’re currently in debt and wishing you weren’t then you have options. These are 3 of the fastest ways to cut your debt.
- Overpay on your monthly repayments
Even small overpayments on a monthly debt amount can make a big difference to how quickly the debt is cleared. So, if you really want to cut your debt at some speed then look to pay more than just the minimum every month. If you’re not entirely sure where the money is going to come from then look for ways that you could make savings across your lifestyle. So, for example, could you give up your gym membership until the debt is cleared or give up drinking? The money you’d normally spend on both of these could be put towards debt overpayment instead.
- Consolidate your existing debts
One of the reasons that many people struggle to pay debts off quickly is the interest that is due on those debts. So, if you want to reduce what you have to pay overall you might want to look into consolidating existing debts into a single larger debt – preferably one with a lower overall interest rate. Shop around for the best options for finance to consolidate the debts that you already have. You should be able to reduce what you’re paying in interest quite significantly by doing this. For example, if you’re paying 21% in interest on two credit cards and you can move these debts to a personal loan at 12% you will have less to pay off in the long run.
If it’s really important to you cut your debt as soon as possible then you’re going to need every resource that you have to do it. That could mean clearing out clutter at home and trying to generate some cash from it to put towards reducing that overall amount that is owed. Hustling might mean asking for a long overdue pay rise at work. You could look into whether you might be able to make some extra money from working in the gig economy at evenings or weekends. And you could also go on a major economy drive so that you’re not spending a single penny more than you need to when it comes to lifestyle and expenses. Sometimes, the biggest issue we face with debt is the idea that we don’t have anything with which to clear it. However, if you’re resourceful and willing to hustle to generate that extra cash you can cut your debt much faster than if you just sit there and wait for the regular monthly repayments to tick by.