Sometimes, life can end up catching up with you and before you know it, you’ve ranked a ton of debt. It might seem like a Herculean feat to get out from under debt, but it is possible. Like most things in life, it won’t be easy, but it is possible to pay off your debts (yes, even if you have tens of thousands of debts) if you are committed and follow strategies. The road to financial recovery is not always fancy, but it is always rewarding!
Move unexpected cash to your debt
The first strategy is to use any extra money that comes your way towards your debt repayment. Though money doesn’t fall from the sky or grow on trees (sadly), unexpected windfalls of money can come from many sources such as birthday money, a tax refund, an inheritance, etc.
If you get an unexpected amount of money, use it right away towards paying off your debt. The quicker you pay it off, the less interest fees you will have to pay!
Maximise your income
It’s no secret that the more money you have, the more you have the ability to pay off your debt. So this strategy might seem a little obvious, but a lot of people don’t do it. You might want to look into ways to do so at your current job, by doing overtime, extra shifts and or negotiating a higher pay. The idea is to increase the amount of money coming in, so that you can put that directly into paying your debt.
If you are in debt, this isn’t the time to pay for a luxury vacation or a new couch. Make do with what you have and live simply, without any extravagant spending. Don’t view your credit cards’ available balances as cash you can spend, instead, look to your budget to figure out what you can and cannot afford.
Sacrifices will be inevitable if you want to pay off your debt quickly.
Look for opportunities
The last strategy that can help you has to do with identifying opportunities. Be it, coupons, deals, or even a lower interest rate on your credit card, any little thing can help bring down that debt. Are you able to get an extra job on the side? A little extra income that you will exclusively use to pay down your debt can greatly contribute to your debt-free future!