When it comes to paying off debts, a lot of people ignore the interest that is piling up and opt to only pay the minimum due each month. However, even though this may leave you with more spending money for the time being, in the long run, it is costing you much more money that you will eventually have to pay off at a high cost.
Interest builds and builds over the years when you pay only the minimum due. Therefore, do your wallet a favor and try to pay off your debt as soon as possible to free yourself from the grips of piling interest.
If you are interested in getting out of debt on the fast track, here are the best ways to do it as fast as possible.
Get a Part Time Job
In order to be able to pay off your debts at a faster rate, you will need a higher income so that you can still maintain your living costs with your current paycheck. Try looking for a flexible part-time job like driving for a rideshare company or babysitting in the evenings.
Use whatever money that you make from this part time job and use it solely for paying off your debts. You will be tempted to use this extra income to use for instant gratification but the idea here is thinking about the big financial picture. Pay your debts off now so that you can enjoy your money later.
Stop Eating and Drinking Out
One of the biggest culprits of where the average person’s money is going frivolously is going out to restaurants and bars. Make a commitment to yourself to only eat things that you prepare from home. You can save yourself hundreds a month by making this small change.
If you want to go out and be social, order a coffee or a water for under $3, otherwise stay home and resist the temptation until you pay off your debts!
Move In With A Family Member
On average, the biggest expense a person has each month is their rent. If you can eliminate this from your expenses and put all that money into your debts instead, you will find yourself out of debt months maybe even years sooner.
Ask a family member or a friend if they would be willing to let you stay with them for a while until you get out from under your mountain of debt.
Consider a Balance Transfer
Take a look at some of the balance transfer options out there. If you can find one that offers a 0% interest rate on what you shift over and you make a commitment to pay it all off within a year, then you can save yourself hundreds of dollars that you would have spent on interest.