Are you finding yourself in some financial trouble and urgently need to know how to get out of debt fast? Then let these 10 steps guide you to a debt-free life in no time! Do note, however, that getting out of debt takes a lot of effort and dedication – so if you’re not willing to put the hard work in, it’s unlikely that you will see quick results. Here’s a list that FastSaleToday has devised to assist you with your ‘get out of debt quick’ plan.
1. List out all the debts you must pay
A good starting point is to write down how many, and which, debts you have left to pay. This will give you a visual guide on how ‘in-debt’ you are and will motivate you to take immediate action once you realise how much debt you have to pay off. After listing out all your debts, make sure to prioritise your debts by listing them in order of urgency and importance, to prepare you for our next step.
2. Pay off your most urgent debts first
Linking to the previous point, it’s vital that you get a head-start on your most urgent debts first. If you want to get out of debt fast – this is a step that should not be neglected. An example of an urgent debt is a mortgage. If you have a mortgage and you are struggling to pay it off, you could be at risk of losing your home – so it’s best to nip this in the bud first before it’s too late.
3. Have a goal and a deadline
When trying to pay your debts off quickly, you should have a goal in mind. Is your goal to get out of all debt in a year? 6 months? Or maybe in a few weeks? Make your goal realistic and stick to it to ensure that you can get rid of your debt in a timely manner, this will depend on how much money you owe. You could do a monthly or weekly progress report to see how well you’re doing in paying off your debts, and evaluate whether you’re successful. If you’re not making any progress, it might be time to revisit this ‘how to get out of debt fast’ guide to refresh your memory on the steps you should be taking.
4. Cut down your spending
To be able to successfully get out of debt quickly you need to have the finance to be able to pay off the money which you owe, whether it’s credit cards, bank loans or overdrafts. This money should come from your income or savings (if you have any). So, if you know you’re in trouble, financially – cut down on your spending so you can pay off all your debts effortlessly.
Here are some ways in which you budget effectively:
- Only buy necessities.
- Go to a more affordable supermarket for your weekly shop.
- Cancel any subscriptions like Netflix, an expensive gym membership/phone contract and opt for a cheaper option.
- Cook meals at home and avoid going out to eat or getting takeaway.
- Choose an energy provider that is cheaper than your current one.
5. Stop using your credit cards
This step is vital if you want to pay off loans fast and without much hassle. If you’re using your credit cards while simultaneously trying to pay them off – you will be back to square one and it will take you forever to pay back your loans. Avoid using these cards, at all costs, as it will most likely put you in a worse economic position than you initially started off with.
6. Sell things that you don’t need
Need some extra cash to pay off your pending debts? Why not sell some of your possessions that are of no use to you anymore – old clothes, kid’s toys, jewellery and other objects that could sell. Consider having a car boot sale or sell things on eBay for some extra cash, which can easily go towards paying off your debts.
7. Get a part-time job
Getting an extra job when you’re in a tough financial position might be your best bet when trying to get out of debt quickly. This can be a weekend job or a few hours here and there to provide you with some extra income. You could work as a freelance cleaner or at a coffee shop. The thought of an extra job may seem extremely daunting, but it may be a necessary if you’re struggling to make ends meet.
If you don’t have a job to start off with then you should definitely try to get a full-time job to ensure that you’re getting income from somewhere, otherwise the problem may become more than just owing money.
8. Pay more than the ‘minimum’ for your credit cards
The trick to getting out of debt quickly is to pay more towards your credit cards each month. If you have enough money to do this, it is suggested that you do so because it will benefit you in the long-run, and will make sure you get out of debt much faster than if you merely pay the minimum amount each month.
9. Consider selling your house
If you’re thinking of how to get out of debt fast, you may need to consider selling your home. This may be a hard pill to swallow, but if your financial situation is that bad – for example, you’re wondering how to get out of debt when you have no money – it may be time to take drastic action such as selling your house fast – preferably without paying any estate agent fees.
Of course, you should think wisely before you take this bold step and consider the pros and cons thoroughly. If you’re not in a significant amount of debt, then it is not advisable to sell your house, unless you were already planning to do so before your financial situation got worse.
10. Set a budget
Setting a budget will allow you to set aside enough money to get you through the month as well as effortlessly pay back all your debts in a shorter amount of time. Budgeting is a good technique in general, as it allows you to manage your spending well and could help you save up money towards a car, for example, instead of applying for a loan – getting you into even more debt (it can seem like a never-ending cycle).
These are 10 of the most vital tips you should consider when thinking about how to stop debt quick. Some of these steps are much more difficult to do than others and you should make the decisions on whether to follow through with them, based on how ‘in-debt’ you are.
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