10 Simple Ways to Crush Your Debt Faster

[Caramelle]

Many credit cardholders are unable to pay off their credit card balance in full each billing cycle. This translates to higher interest charges which further prolongs the payment period. If you cannot pay the total amount due, you should at least try to reduce the interest and use the extra money to pay down your debt faster.

Here are simple strategies to minimize your interest charges and accelerate your debt payment:
​

1. List down your credit card debts, arranging them based on the interest rate. Schedule a minimum payment for all other credit cards while paying off the excess money above the minimum amount due for the credit card with the highest interest rate. This is also known as the debt avalanche approach. It requires discipline. This approach is mathematically sound and will help you save considerably on interest. If that doesn’t motivate you enough, you can try the snowball method which focuses on accelerating payment for the lowest amount of debt.
2. Apply bonuses, cash gifts, or extra money to your debt payment. Any extra payment will help reduce the interest charges which you can use to pay off the principal debt.
3. Pay above the minimum amount due. Paying only the minimum amount will prolong the payment period. Save on interest in the long run by paying extra.
4. Consolidate higher-interest credit card debt into one, low-interest principal debt. You can do this through a balance transfer scheme or by applying your home equity. Avoid the pitfalls of being tempted to use the available balance after consolidation.
5. Split your monthly payment and pay twice. Take note that interest is computed based on the daily average balance. Thus, if there is no penalty involved, divide the amount due and pay the first half earlier. That can save you some interest.
6. Take stock of your spending, eliminate extra expenses, check your grocery spending, and take advantage of reward points and freebies.
7. Stop the bleeding and discipline yourself to pay in cash for all your purchases. Keep the card in a place out of your easy reach.
8. Increase your income. Take on a second job or some side gigs and use the extra money to reduce your debt.
9. Negotiate with your credit card company for a lower rate. Some banks offer balance conversion for a much lower rate. Decide if this is acceptable and compare this with other banks’ balance transfer rates.
10. When you have exhausted all means to crush your debt on your own, consider debt counseling.

 

[Mellorando]

When you’re in debt, it can be easy to pretend everything is fine. Until one day it catches up with you. Yes debt is dumb. Real dumb. And the only way to get rid of it is by facing it head on. As much as you’d rather bury your head in the sand and pretend it’s not there, it only stays “hidden” for so long. So, if you’re wondering how to get out of debt, below are different ways I can come up with to get out of debt easily:

1. Create (or update) your budget:
If you’ve never created a budget, now is the time. Write down all your expenses: everything from your mortgage payment (or rent) to student loans. Don’t forget to include lines for gas and food. Then write down how much you earn each month.
Deduct your total expenses from your income and the leftover cash can go towards debt. Your budget isn’t set in stone; you can update it as often as necessary. If you get a raise at work, you can make adjustments to your budget as you see fit. It should just always be your reference point to stay on track.If you need help, you can use tools like Mint or You Need a Budget. A spreadsheet is also a simple and easy method to managing a budget.

2. Cut your spending:
If you’re not finding any extra cash in your budget, you might need to make adjustments. For instance, if you give yourself $80 a week for eating out, you might want to cut it to, say, $50 a week — and eat at home more. Then you can put those extra savings towards your outstanding debt.


3. Review your monthly bills and subscriptions:
Review your monthly subscriptions for things you might not need (and might not be using) like video streaming services you could go in on with a friend or family member instead. See if you can bundle similar things, like car and home insurance or internet and cable or find ways to cut them out completely. Also go over your internet, insurance, and cable bills — sometimes it helps to call your provider to see if there are any new discounts to take advantage of that will help you shrink your monthly bill.

 

[Abigael]

Those are very good tips to pay off debts faster. I used these tips before and I am glad that I am currently living a loan free life and it is so great to be this way. The thing that I did best was reducing my expenses by cutting out those things that I don't need. I had to stop taking so many snacks and stopped using so much data bundles to watch YouTube videos. I also had to look for better ways of earning both online and offline and the increased income helped be pay off all my debts. Now I don't borrow anymore.

 

[Kingsley]

You listed points are worthy of note, because today thr problem of debts or borrowings is no longer an individual but also a national problem what never seizes to baffle me is that despite all the economist and financial professionals we have in the public sector, yet we still keep having the problem of debts and we are still borr owing funds from IMF And the world bank. Infect we have even gone beyond the IMF and world bank that we now borrow from countries even some are poorer than we are in terms of natural resources. I wonder if these same point you listed here are not known by those that are piloting thr affairs of my country or whether it is just a deliberate effort to plunge the people in abject poverty.

The worse part of this is that with all the monies that has been borrowedwe have nothing to show for it as we now occupy the position of the worlds capital of all poorest peoples. I am hoping one day we will come out of the shackles of those piloting the affairs of my country. To abstain from debt on must be disciplined and determined not to access it.