How to get out of debt fast
Many who have found themselves in debt will have received wisdom from friends or read articles about how to get out of debt fast .
There are two schools of thought on this, one is to consolidate your credit card debt into one consolidation loan, pay off debts on the credit card in one go, and then pay your consolidation loan off over a relatively long period of time. The other is to try and pay off your debts in a much shorter period of time. My own advice would be that if you can pay it off quicker, then do it. I hope yo find this article helpful and that it helps you on how to get out of debt fast.
There are 3 benefits in finding out how to get out of debt qui Getting financing is not easy, but people get good results when they låna-pengar.biz – loans and credits – and pick an option. ckly-
- your credit card debt is dealt with and you can move on with your life
- it may help your credit rating more compared to other options available
- you avoid the hassle of trying to consolidate all your debt in one big pot. Debt consolidation can also be expensive.
There are also 3 challenges in learning how to get out of debt quickly-
- it will be painful for a while
- you can’t keep spending on your credit card during this time
- you will need to be disciplined in your payments
So what are my next steps?
1) How to get out of debt fast by getting your spending under control
Write down what you spend in a month, including all automated payments, cash buys, subscriptions, food, fuel, mortgage etc. Try and work out what’s essential and you can live without. For once or twice a year big spend items, such as car repairs and vacations/holidays you will need to, average out across the year to work out your monthly spend. (i.e. total cost of holiday/12 = monthly spend). Start to cut out the non-essentials and whatever you do you must stop using your credit card for purchases. You really want to be in a position where you are spending a little bit less each month than what you are earning. If you do this you will be well on your way to reduce debt quickly
2) How to get out of debt fast by earning extra income
Once you have your spending under control, one way of making sure you have enough extra cash each month to pay off that credit card is to increase your income. This might mean you take on an extra job, do some regular overtime, or take on another shift. You also might be able to sell some stuff you don’t need any more, which can bring in some much needed cash to put a dent into your debts.
3) How to get out of debt fast by moving to a 0% APR credit card
This one comes with a disclaimer and word of warning. Only do this if you are serious about paying off your card in a short period of time. There are a number of 0% interest deals out there, but when you read the small print, you will find that the interest rate will jump significantly after a certain period, usually 6-12 months. The rate you might end up on after that period could be higher than the rate of your current card, so you need to be aware of this. On the other hand, with a 0% interest rate, you have a perfect opportunity to get that debt down. See how much you can move from your old card to your new one, and then start paying off as much as you can so that by the end of the 0% term you will have no more debt left. You may need to do this in stages, as when you start off with a new card, your credit limit will be restricted. There are other options out there allowing you to consolidate debts, but debt consolidation loans as they are called, can be expensive and can have quite high interest rates.
4) How to get out of debt fast by being disciplined in your payments
Once you have worked out how much you can afford to pay off each month, set up a standing order, direct debit or some form of automated payments. You can’t afford to slack off on this if you want to meet your target. Also, if you have a month where you have been doing some extra overtime, or have sold some household items on eBay or at car boot sales, use that extra cash to make a one off payment of your card.
Follow these 4 steps and hopefully you will be debt free in no time. If you have found this helpful, let me know by leaving a comment below.
Also, have a look at the links on this page to other articles and resources to help you get out of debt as quickly as possible.