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4 Easy Ways to Pay Off Debt Faster

4 Easy Ways to Pay Off Debt FasterNo 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?

 

Photo courtesy of: terimakasih0

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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.

2 comments

  1. Eating at home is a HUGE winning tip. So many people don’t realize just how much money they spend at restaurants, carry-out, etc. The average family spends more than $2,000/year – many spend even more than that though. Definitely the first area I’d look at in most budgets when trying to free up some cash.

  2. You could also take some more aggressive measures like debt settlement or debt negotiation when you have fallen behind and it’s very unlikely you’ll catch up with all the late fees and penalty. This is an alternative to bankruptcy and can help you resolve your debt in 2 to 4 years.

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