{"id":452,"date":"2018-08-06T05:15:58","date_gmt":"2018-08-06T05:15:58","guid":{"rendered":"http:\/\/www.development-work.com\/mydebt\/?p=452"},"modified":"2020-10-26T05:17:57","modified_gmt":"2020-10-26T05:17:57","slug":"12-solid-ways-to-beat-your-debt-fast","status":"publish","type":"post","link":"https:\/\/www.mydebtacademy.com\/debt-management-plan\/12-solid-ways-to-beat-your-debt-fast\/","title":{"rendered":"12 Solid Ways to Beat Your Debt Fast"},"content":{"rendered":"
The interest on your principal amount can make the payments, scarily high. Even if you follow the strategy of paying the minimums, it takes years to finally get rid of that balance. In addition, high levels of debt can put your access on a leash to additional credit, whether it\u2019s for a new house or getting a new car.<\/p>\n
The sad reality is that erasing financial problems isn\u2019t possible in a snap. But that doesn\u2019t mean there\u2019s no solution for it.<\/p>\n
Yes, you heard it right.<\/p>\n
Your best chance to get out of debt faster is by creating a strategic plan, in which you need to reevaluate your spending habits while setting up required financial goals.<\/p>\n
Let\u2019s take a look at the following steps to learn how.<\/p>\n
Whether you had blindly used your credit cards or had an incapacitating illness that made you stay away from work for a while, all that matters now is that you are under debt.<\/p>\n
Regardless of the reason, the right thing to do is stop spending money in order to get the finances back on track. This may sound easy, but believe it or not it\u2019s quite a tricky thing to do, which requires a major mindset shift.<\/p>\n
It doesn\u2019t mean halting purchases, but you need to recognize the difference between your wants and needs. Yearly vacation is something you want (avoidable), whereas, buying the groceries is your need (non-avoidable).<\/p>\n
Of course, maintaining a limit for grocery shopping is also mandatory.<\/p>\n
This means to get out of your debt, you have to channel every extra dollar towards paying off the balances.<\/p>\n
No more dining out just because you don\u2019t want to cook, no more snack runs at rest stops, etc. You need to understand the fact that small expenditures have the same tendency of leading to recurring debt just as much as the bigger ones do.<\/p>\n
So, put a curb on both and pay everything off.<\/p>\n
Making plans for conquering your debt will be of no use if you keep on adding more to what you owe at present. In case you are unable to stop your spending, then try to eliminate the temptation completely.<\/p>\n
Don\u2019t shy away from hiding or cutting up your credit cards if you feel the need. Apart from this, make sure to remove your credit card information from the websites you mostly shop at.<\/p>\n
After controlling your day-to-day urge to spend, you still need to take care of the unforeseen expenses, such as a visit to the doctor or a bill from the mechanic. How?<\/p>\n
Create an emergency fund with a minimum of $1,000 to safeguard yourself when you have a last-minute bill to deal with. Otherwise, the only thing you\u2019ll be doing is gathering new debt just as you pay off the old one.<\/p>\n
To realize the depth of your debt situation, all you need to do is go through all of your bank and credit card statements and see where and what you have actually spent your money on.<\/p>\n
You\u2019ll most likely be stunned to see how rapidly petite purchases add up over a month.<\/p>\n
What to do?<\/p>\n
Search through your previous statements to pull out all the essential payments or purchases, such as the mortgage or rent, your utilities, etc. From there, you can see where you need to cut back.<\/p>\n
If seems fit, you can set up the option of autopay for your bills on your payday, and also use assigned envelopes of cash to fulfill your gas and groceries related needs.<\/p>\n
Once you are out of cash, start digging in the pantry and be creative in the kitchen.<\/p>\n
To pay down your debt fast, you need to pick one credit card to focus your main efforts on. So, how to decide which one to go for first?<\/p>\n
There are several ways to choose, simply pick the strategy that you feel will work for you.<\/p>\n
One of the most tried and tested methods is to choose the card that has the smallest balance. This helps you have an easy win while keeping you motivated so that you can move forward with confidence.<\/p>\n
On the other hand, if you feel more motivated by saving money, then you can target the card that has the highest interest rate. Thus, you end up paying less in the long run.<\/p>\n
Throw the extra money you have towards that one payment you select, rather than distributing the extra payments equally among your outstanding debts. Simply opt for a payoff strategy that will make you move more towards your progress, rather than choosing the one which will make you feel bad about your debts.<\/p>\n
Only because you are focusing the extra cash towards that one credit card doesn\u2019t mean there aren\u2019t others that require minimum payments. The agenda of\u00a0getting out of debt<\/a><\/strong>\u00a0is to free-up some cash while strengthening your credit.<\/p>\n In case you miss the minimum payments, you probably fetch late fees and also go into delinquency on your account.<\/p>\n Once you are 30 days late\u00a0or more, your credit score starts to collapse. So, keep in mind to safeguard your credit score by paying every minimum payment while beating down your debt.<\/p>\n Another way to fulfill the goal of getting rid of debt faster is to save money on your interest payments. For credit cards, contact your company and try to make them agree on a lower rate.<\/p>\n It will be an added advantage for you if you are a long-time customer who has never missed a payment.<\/p>\n You can also take into account the option of balance transferring from one credit card to another with a lower interest rate or in some cases, no interest for a set time period.<\/p>\nLower down the interest payments<\/h3>\n
Consider Balance Transfering or availing a personal loan<\/h3>\n