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4 Overlooked Ways to Pay Off Debt

pay off debtIf you are carrying a significant amount of debt, you probably have thought about a million different ways in which you could pay off those bills. It can be difficult to make ends meet while also trying to pay off debt, so the challenge may seem impossible from time to time.

However, it can be done, as long as you are willing to work hard and think creatively along the way.

Here are four ways you can pay off debt once and for all.

Make More Money

You might have rolled your eyes a little bit at this point – of course you would like to make more money!

Surprisingly, many people don’t really pursue this option when they are trying to get out of debt. As they are so focused on ways to save money, they fail to pursue the options that are available for bringing in extra income.

You could pick up part-time work online or in the ‘real world’, you could ask for a raise or overtime, or you could consider searching for a higher paying job. Don’t assume you are stuck making your current salary forever – with a little hard work and persistence, you may be able to find that extra income that you need.

Make it a Priority

Quite simply, it will be easier to pay off your debt when you prioritize that part of your financial life. For example, if you choose to skip your next vacation or two, or opt for a staycation, in favor of putting extra money toward the debts, you can get rid of them that much faster.

Sure, there will be some degree of sacrifice in the short-term, but that sacrifice will be made up for in the long run when you can live a debt free lifestyle. Setting aside your present day desires to make your future better is a decision you are unlikely to regret.

Consolidate Debt

Interest is the one thing that makes it so challenging to pay off your debts in a reasonable amount of time. If your interest charges are racking up each month, try to consolidate your debts into a single loan with a lower overall rate.

By saving money each month on interest, more of your money will be dedicated to the principal of the debt balance, which means you will be getting closer and closer to eliminating it once and for all. There are many loan consolidation options available, such as Avant, that make it possible to significantly cut rates so more of your payments goes against the actual debt.

Be Thrifty

Being thrifty on a day to day basis is about looking for deals, using coupons and not purchasing items that you simply don’t need.

Take a defensive approach to spending money – only spend what you must, and keep the rest. This is a lifestyle choice that will take some getting used to for some people, but it can pay off big time in the end.

There should be more money in the bank account at the end of every month to point towards your debts as long as you can stick with this defensive approach on a daily basis.

 

Have you used these ideas to help pay off debt? What else can you do to pay off debt faster?

 

Photo courtesy of: edar

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John Schmoll is a Dad, husband and veteran of the financial services industry. He's passionate about helping people learn from his mistakes so that they can live lives free from the shackles of debt and empowered to make their money work for them. You can check out his other sites: Frugal Rules, for ways to improve your financial literacy; and Sprout Wealth for tips on different ways to make more money. John has been featured on Forbes, Lifehacker, Yahoo Finance and US News & World Report and more. If you're wanting to grow your blog, check out my blog coaching services to see how I can help you take your site to the next level.

One comment

  1. Looking for more side hustles is really a key here, which I always do especially when I have a debt to pay. Then, this one also helps me, budgeting to keep my expenses as low as possible. I haven’t done consolidating my debt and I will definitely consider this next time.
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