American household debt hit nearly 13.12 TRILLION in 2018 alone. If you’re one of those millions of debt-enslaved Americans, you’re not alone.
The big question is, how to eliminate that debt?
Here are 7 fantastically simple ways to get out of debt quickly—or at least, make a serious dent in it.
1. Throw Your Debt a “Snowball”
List each of your debts in order from smallest to largest.
Then, proceed to throw all your excess income at your smallest debt first. While doing this, continue to pay the minimum amount on the other, larger debts.
Over time, you will slowly build momentum as you begin to pay off the smallest debt entirely. Then move on to the next smallest, and so forth.
Eventually, you will find satisfaction in completely eliminating some debts as you work your way up to your largest remaining amount.
2. Cut Your Costs
Everyone enjoys a night out once in a while. But, as famous debt-eliminators like Dave Ramsey will attest, when you’re in debt, you can’t afford to eat out.
To eliminate your debts as fast as possible, buckle down and cut out all unnecessary expenses. No more fast food, vacations, or Amazon Prime.
At least not until your debt is gone.
3. Build a Budget
Account for every dollar you spend. Figure out how much of your paychecks you should be given to your debt payments to get out of debt within your goal date.
Then, stick to your budget.
This may sound too simple to be true. Unfortunately, it’s totally effective. The hard part is actually sticking to your budget.
4. Earn on the Side
Cleaning, babysitting, lawn-mowing, hot-dog-eating contests, whatever you can find that can bring in some extra cash could help make a serious dent in your debt.
Don’t underestimate the power of the side-hustle when it comes to earning more to be thrown at those monstrous debt-mountains.
Unfortunately, some people are scammed into paying unlawfully high-interest rates on their debt. Protect yourself by doing your research and making sure the interest rates on your debt are within legal limits.
You can also get LPO for fighting unfair debt practices.
6. Pay More Than the Minimum
You want to get out of debt, but you’re only paying the bare minimum each month? Those two things do not go hand-in-hand.
If you’re serious about becoming free from debt (before you die), then you have to step up your payment amounts. Using your new budget, figure out how much you can afford to pay towards debt each month.
Then, pay the most you possibly can!
7. Sell Your Junk
You may be surprised at just how much money you can bring in with a well-advertised garage-sale. If you want to be out of debt more than you want that old record-player, then it’s time to purge.
Go through your home and find everything you can do without. Then, sell it. Whatever proceeds come, you throw them with a mighty determination towards that debt.
How to Eliminate Debt Even Faster
Knowing how to eliminate debt faster isn’t a secret. In fact, many Americans are incredulous when they realize just how simple debt-reduction methods actually are.
The basic rules of thumb are to live within your means, live by a budget, and put all your excess income towards freeing yourself from debt.
Browse our blog for more money-related articles and take one step closer to becoming debt-free!