Debts can ruin you financially and put a stop to your progress. Whether you have a countless number of financial debts or a small credit card balance, it can make it impossible for you to get ahead financially. Making debt payment is not easy, it requires a certain amount of determination, persistence, dedication, and sacrifice.
Here are a few smart ways to clear your debt fast
Say no to credit cards
If you want to get out of debt fast, you should stop swiping the credit cards, especially when you really do not need to. The more you use the credit cards, the deeper you go into debt. This means that you will have to put aside a bigger portion of your salary to clear the loans. Avoid taking cash advances on the credit cards unless you really need the money for a financial emergency.
Say no to credit cards
If you want to get out of debt fast, you should stop swiping the credit cards, especially when you really do not need to. The more you use the credit cards, the deeper you go into debt. This means that you will have to put aside a bigger portion of your salary to clear the loans.
Cut the spending
Stop spending your money unless you absolutely need to. Some things like food and utilities are completely necessary while others like leisure activities are not. You can skip some of your trips to the coffee shop and make some of your own for several months until you make the loan payments and can afford to purchase the coffee again.
Double the loan payments
Paying twice as much monthly will help you clear your loans fast. Where will you get the extra money? You can forgo leisure activities and pawn off some items you no longer for a couple of months and use the money on your monthly loan payments.
Clear the loans strategically
Having multiple loans is risky and could mess up your finances in the future. Clearing them before the deadlines is the best way to create a good credit reputation for yourself and increase your chances of getting a bigger loan in the future. While some people prefer to use the snowball method where they clear the lowest to the highest, I would suggest that you start with the debts that have a high interest rate first then work your way down to the lowest.
Pick a side hustle
Sometimes the best way to clear a loan is to basically earn more money. Getting a third job or a paying hobby can help you clear some of your debts fast. Find something you are really good at and find ways in which you can make money out of that.
Consider a balance transfer
If the lender will not agree on an interest rate change maybe you could look into balance transfer. Some balance transfer offers let you secure up to 0%APR for up to 1 and ½ years. You will need to pay a transfer fee but it is better off than sticking with a high interest loan.