WiseDollar

When it comes to personal finance, there is nothing that you can do which will be more important than eliminating debt.

Saving is great, but it isn?t going to do you as much good as simply wiping out your debts as quickly as possible. If you currently have any degree of debt, your first objective should be to get rid of that debt right away.

Of course, this is something which is far easier said than done. You may already know that you should be getting rid of your debts, but you might not know how to do it. This is especially true if you live on a variable income, which is true for many people in today?s ?gig? economy. To help you get on the right track, we have assembled?some tips to help you eliminate debt on a variable income.

Build It Into Your Budget

Debt payments should not be seen as an optional part of your budget. For many people, paying down their debt is something that they do when there is a bit of ?extra? money laying around at the end of the month.

That is a poor way to look at this topic. Instead, you should be prioritizing debt, as carrying that debt is actively costing you money on an ongoing basis. While planning your spending for the month, build in debt payments and view them as fixed rather than optional.

Have a Savings Buffer

Because your income varies somewhat from month to month, one of the best things you can do is save up a ?cash cushion? that you can leave in your savings account for protection. This doesn?t have to be a huge amount of money, but it should be enough to help get you through those thin months when you don?t have as much income to pay your bills.

Even if you have just a couple thousand dollars available in cash, that reserve will make you feel more comfortable about committing money to your debts.

Tighten Your Spending

There is no way around it ? you are going to be able to pay off your debts faster if you stop spending so much each month. If you take a careful look at the money you spent in the last 30 days, it is almost certain that you have spent some money which could have been saved instead.

Put the emphasis on saving instead of spending in your day to day life and you will have more funds available to eradicate your debt.

Go Cash Only

You are never going to get rid of your debt if you are adding to it at the same time that you are trying to pay it off. If you can?t afford to pay cash for something, it is better that you don?t purchase it at all. Learning to have the discipline to only purchase things which you can afford at the time will go a long way toward helping you get back on track from a financial perspective.

Do you have a variable income? How are you paying off debt?

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No one likes debt. If you are in debt, you probably spend a lot of time thinking ? and worrying ? about how to pay off debt faster. Not only will carrying debt cost you money in the way of interest charges, you will also have a lower credit rating due to your debt load. Ditching this debt is going to be good for your financial future all the way around.

While there is no ?magic wand? which can eliminate your financial obligations, there are a few things you can do in order to pay off debt faster?than you may have thought possible. Consider the advice provided in the four points below to get your financial life out of the hole and back on track.

1. Prioritize the Highest Interest Rates

This is a relatively obvious point, but it is one which is missed by many who are in debt. When making your payments each money, try to apply extra money to the accounts which carry the highest rates of interest. Wiping out these accounts first is going to save you money in both the short and long term. Of course, you never want to miss any debt payments, so don?t pay extra on one account if that means you can?t make your payments on other accounts.

2. Pick Up a Part-Time Job

There is nothing like extra income to help you pay off debt as fast as possible. If you have the time available in your schedule, consider picking up an extra job with the specific purpose of making extra debt payments. You might be surprised to find how quickly this strategy can pay off if you are diligent about applying your extra paycheck to your debts.

3. Cut Out Two Bills

Take a look at your recurring bills each month and try to spot two which you could do without. Many people have subscriptions to various services that they don?t really use enough to justify the expense. If you can cut just two bills out of your budget ? and then apply that money to your debts ? you will be able to cut into your debt in short order. You might have to be a little creative to find the two bills you are going to get rid of, but it can be done in most cases.

4. Eat at Home

This is a classic money saving technique, and you have probably heard this tip before in some fashion. It is worth repeating, however, because it can have such a profound impact on your family budget. When you go out to eat, you will usually spend twice as much as you would have at the grocery store for a similar meal. Yes, you have to cook the food yourself when you go to the grocery store, but the savings are worth it. Also, as an added bonus, home cooked food is often healthier than what you will get at a restaurant. Saving money by eating at home can make a big difference when looking for funds to pay off debt faster.

Remember, debt is not forever. Doing just a couple of these simple things can help you pay off debt faster so you can enjoy life debt-free.

Have you done any of these to pay off debt faster? How are you paying off debt?

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