Who doesn’t want to get out of debt quicker? In this article, we talk about no nonsense strategies to getting you out of debt faster.
It’s never convenient to be in a debt crisis where everything just seems like it could never get better. The truth is, things will get better. You’re already at the bottom and at this point, there is nowhere to go but up. That is, if you are committed to improving your financial situation.
You may be sick and tired of hearing the same old advice; spend less, skip on that Starbucks coffee, freeze your credit card. We know, we’re tired of hearing it too. That’s why we have decided to write this guide for you. In this article, we will talk about unique strategies that you can take in order to get out of your debt situation
1. Use Cash
And not your credit card. You can’t use your debit card either. That means you have to withdraw money at the ATM and use cash for every transaction every time. Why? Because letting go of real money in exchange for a product or a service will inflict more pain in you prompting you to spend less.
The first few days will be brutal with you realizing just how much money you really spend. This is normal if you’re used to always paying by card. When you’re handling with the real money, the consequences feel more real making you less likely to play around with it.
2. Pay your debts from lowest to highest
Paying off a big amount at the beginning is only for the extremely committed. You want to build a momentum where paying debt will actually feel like an accomplishment you want to achieve every time. This can be done by paying your debts from lowest to highest.
Begin paying the small ones first and once that expense begins to feel natural, you can add a little more until you are able to handle the bigger debts. For bigger debts, refinancing your home could be your last resort. But only if you can assure yourself that you’re still capable of paying your mortgage. Work with a Central Coast mortgage broker to help you out on this one.
Not only does this make the transition process easier but it also gives you a sense of accomplishment for being able to pay off such amount.
3. Do a balance transfer
Take advantage of the competitive nature of financial institutions and do a balance transfer. Not just any balance transfer. Shop around for the lowest rates; but before settling for the lowest, read the terms and conditions. Some banks can be sneaky and surprise you with additional fees later on.
A balance transfer will do you good since you’ll only need to pay off credit at a lower interest rate for doing business with the bank you transferred to.
4. Sell your stuff
Look around you. If you are in huge debt, then there’s a big chance you own many things in your home. That’s what this debt craze is all about. Things and the endless accumulation of them.
An item may have had a purpose in your life before but if it doesn’t serve you anymore, then it’s time to let it go. Its purpose this time should be to get you some extra cash.
Start by sorting your things into three categories: Need, Do Not Need, and Maybe. Sell the ones in the “Do Not Need” category and give the “Maybe” a week to think over. After a week, you should be able to make a decision on where the select “Maybe” items go.
Throw whatever you own from the sale to your debt.
Those are just some of the practical strategies that we can recommend to you. Try out all of them. Every person in debt should be able to utilize these steps.
Do you have other strategies that you can recommend? Let us know in the comments.