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7 Tips for Getting Out of Debt Quickly
There are many ways someone might get into debt. Trouble in the job market, relationships, money management issues, loans, poor credit card spending, and unexpected expenses all add up.
However, whether the debt is a small or large amount, with some discipline and planning, many people manage to pay off their debt successfully. Not only that, but they start to set the course for healthy debt and money control for years to come. We want to go over some basics about debt management here.
Debt Management
Setting good habits in place to pay off immediate debt often leads to life-long mindset shifts in money management. This shift is what continues to help people not only stay out of debt in the first place, but contributes to paying off debt faster and keeping situations from getting out of control.
A large factor in debt management is understanding your lifestyle and your income. This is also critical to deciding whether or not to make a big purchase decision that someone may or may not be able to handle.
Some Debt is Good
While being in too much debt can cause issues, having a little debt is not a bad thing. Debt gets a person in the game, putting them on the credit grid and allowing them to build up their score.
Paying off debt regularly and building a higher credit score allows people to get better offers on loans, mortgages, etc.
However, even though having a little ongoing debt can be good, making sure that debt can be paid off (and paid off consistently) is key.
7 Tips for Paying Off Debt
Paying off debt not only has a positive impact on a person’s credit, but also on their well-being. Below are some strategies for not only getting out of debt quickly, but general money management.
Make a List of Monthly Expenses
This should include everything from rent or mortgage payments to groceries and gas needed for a vehicle. Estimate the amount each expense costs throughout a month and see what can be cut. This is not necessarily something that needs to be a permanent cut, but gives a person in debt an idea of where extra funds can come from in a pinch.
For example, many people are surprised how much money they spend eating out at restaurants vs. buying groceries. Or buying a cup of coffee from a franchise each morning vs. having a coffee setup at home with a to-go mug. A few bucks saved each month can add up quickly and can be reallocated to paying off debt immediately.
Figure Out the Minimum Amount Coming in Each Month
Taking the time and actually laying out how much money is being brought in each month helps visualize the boundaries of a monthly budget. Especially if someone has an unsteady source of income or multiple part-time positions, understanding the minimum needed to pay off expenses is very helpful. It also might show someone that they are living beyond their means and help cut out unnecessary expenses.
Pay at Least the Minimum on Each Bill
Having a stream of active payments is always better than ghosting a company and it shows you are making an effort. Companies tend to be a lot more forgiving with people who are chipping away at their debts vs. ignoring them. This is also a red flag for debt collectors.
If Extra Money Is Available, Make Extra Payments
Most companies are more than happy to allow multiple payments to be made in the same month.
Focus on the Highest Interest Rates First
This can help someone prioritize payments as interest drastically adds up over time. Paying off cards with higher interest first decreases the overall debt amount you owe.
Watch Out for the “Quick Fix”
Unfortunately, there are a lot of scam artists out there who would love to take advantage of a person’s debt problems. Be aware of “pay off your debt quickly” advertisements that ask for additional payments or credit card information. These seemingly quick fixes often result in identity theft or additional charges and do not help the problem.
Sell Your House Fast
If you own your home, there is always the option to sell your house and start anew. When you need to get out of debt and sell your house fast, call We Buy Dallas Houses for a no-obligation cash offer.
When it comes to debt, there’s always another route. You can sell your house without the hassle of a realtor by utilizing We Buy Dallas Houses. We buy houses with cash in a matter of days after scheduling a walkthrough. It’s one of the easiest ways out of a mortgage and into a better financial situation. Contact us online or give us a call to set up a walkthrough.
