How to Pay Off Debt Fast: Imagine being debt and stress free in 30 days or less. If you’re serious about paying off your debt and want to eliminate your smaller debts, these few simple steps can help you cut them down to size fast
1. How to Pay Off Debt Fast: Choose Your Target
To get rid of debt in 30 days you need decide which debt you can clear in that time. Most people wouldn’t be able to clear a mortgage or a car loan in that time, so instead put all your focus and effort into a smaller credit card balance or loan that you hold.
2. Employ the Snowball Method
The snowball method of debt repayment is a technique whereby you focus on paying off your smallest loans first and work up towards paying the larger ones. This method is great at giving you motivation to keep going as you see your debts clear, so if you often find that you easily give up paying off your debts, the snowball method is for you. It is also great for your credit rating as lenders will see that you are actively paying off your debts and working towards clearing your balances.
3. 30 Days of No Spending
It may sound daunting, but if you do this for just 30 days, you will save an extraordinary amount of money above your monthly average you usually set aside to pay your debt. Cut out all additional spending. Only buy the absolute bare minimum; food, gas, bills. Take public transport if it works out cheaper. Eat from your store cupboard whenever possible. It’s just one month, everything else can wait.
4. Say No to Credit Cards
You will never be able to clear the debt on your credit card if you keep using it, so simply stop! Make sure you do not then begin to use other credit cards that you may have though. Once your credit card is paid off, you may think it is best to shut your account down, but it is actually much better for your credit rating to leave it open with a balance of zero. Just make sure you don’t rack up debt on it again by only making purchases that you know you can pay off at the end of each month.
5. Create a Side Hustle
Think of things you are good at and use these to earn some extra money. If you play a musical instrument, you could teach music lessons. If you have a car, you could pick up some shifts with Uber. Examine your skills and use all the extra income you earn to pay off your debt.
6. Balance Transfer
If your current credit card has a high interest rate, then research the market to see what else is on offer. Use a financial comparison website to search for the best deal. Then simply transfer the entire balance on your current high interest credit card, to your new card with a lower interest rate. A number of lender even offer interest free introductory periods of up to 12 months, so check that you are eligible and transfer your balance in full.