If you’ve found yourself in a bigger financial hole than you’d like, or you just want to put yourself in a better position money-wise, there’s nothing like the satisfaction of paying off debts. Want to know how?
1. Spend Less
Yeah, this isn’t the sexiest way to pay off debts, but cutting your spending is the best way to put more money in your pocket — so you can throw it on your loans or credit cards — this means paying more than the minimum payment! Here are some great ideas.
2. Bring in Some Extra Cash
You don’t necessarily need a second job or more hours at work to make some extra money. From selling your old stuff to taking pictures, some of these tactics might surprise you!
3. Seek Help
No, not mental help — debt help. If you have a serious issue with debt, there are professional services (even non-profit ones) who can help you.
4. Live on a Budget — For Real
Decide on a budget you can live with and then stick to it. Put any money you won’t be using to live on toward paying off debt. Dave Ramsey has an amazing budgeting system that my family uses that is actually super liberating. Really!
5. Snowball It
Another Dave Ramsey tip is one of the best debt-elimination ideas ever! Start with your smallest monthly payment and pay it off as fast as you can. When it’s done, take that monthly amount and add it to your next highest monthly payment until that one is paid off. When that one’s eliminated, take the amount you’d been paying on those first two loans and add it to the payment on the third loan. This snowball method pays off debts super fast.