It’s not easy to get out of debt. I mean, let’s be honest. It didn’t take you a day to get into debt, so it’s not going to take you a day to get out of it either. However, you can it easier if you take the right approach. My husband and I have used a few simple tips to help us kick out a huge portion of debt in no time at all, and I know you can do the same. So, take some time today to learn how to dump debt fast.
1. Create a Plan
The first step to getting out of debt is creating your plan. First, you need to determine exactly how much you owe. From there, decide which debt you’ll attack first and decide how much extra you can put toward that debt each month. If you need to, pay minimum payments on all but one debt, so you can apply all your extra money to a single debt. Start with a small debt first, so you can experience success quickly.
2. Apply New Funds Appropriately
Sure, it’s nice to enjoy the extra cushion of a new raise or even of a bonus. But, it’s financially smarter to “ignore” that extra money, keep living at the income you’ve become accustom to, and apply your new funds to debt. We do this with every one of my husband’s bonuses from work, and it’s helped us get much further ahead in our debt payoff plan.
3. Make a Little Extra Money
If you’re really committed to paying down debt, look for ways to make extra money you can use to pay off debt. Whether it’s picking up a part-time job, doing some online work, or taking on extra hours, every little bit helps.
4. Cut the Credit
It probably goes without saying, but you can’t get rid of debt of you’re continuing to create it. So, quit using debt as a way to fund your lifestyle. Make a commitment to quit using credit and only make purchases that you currently have the money for. Take it a step further, and commit to only spending with cash to dump debt even faster!
5. Snowball Your Payments
Remember I said to pay minimum payments on all but one debt to which you apply everything you can? Playing off that same concept, once you’ve paid off one debt, you not only don’t have to pay that debt anymore, you also have that much extra money to apply to your next debt. Apply this practice each time you pay off a debt, and you’ll constantly build up a larger and larger payment. This practice alone will help you cut out your debt fast!
Getting out of debt is a process, but it’s one that you can expedite with the right approach. Use these tips to dump debt fast and improve your financial standing faster than you ever thought possible.
What are best tips for paying off debt fast?