Have you ever thought to yourself “I’ve had it! I’m fed up with all the debt I’m carrying! I want to pay it all off, but how?” If you have, join the majority of others who feel the same way. Debt is a major issue for lots of people, and figuring out how to pay it off can be frustrating. There are several methods you can choose from to pay off debt fast, and what follows outlines a sample of them.
How Much Debt do You Have?
The first thing you need to do is get to know all of your debt. Lay it out on a piece of paper or on your computer. From there, tally up the amount of your debts based on paying only the minimum payments. Hold that total up against your monthly household income, and use the resultant amount as your base for developing a debt reduction plan.
Make a List
Here is a list of suggestions to help you pay your debt off fast.
- Make a list of just your credit card debt, in order from lowest to highest balance owed. If you owe approximately the same balance on two or more cards, go by interest rate, highest to lowest.
- Each month, when you’re paying your bills, pay the minimum payment on all except the card with the smallest balance. For that account, you’ll send every bit of money you can until it is paid off.
- Once you’ve paid off the lowest balance account, move on to the next lowest balance owed. The more credit cards you pay off, the more money you have to pay off more debt, etc.
- Make extra payments if you’re paid bi-weekly. You won’t feel it much if you pay a bit over half the payment due two times a month, and it will definitely help you pay off your debt fast because the extra bit every time you pay will go to principal, not just interest.
- When you pay off one credit card, see if you can transfer balances to a different one with a lower interest rate. This saves you more money, which you can then use to pay off something else.
- Set yourself a budget and stick to it! Print it up on your computer, pin it up on your refrigerator, glue it to your bedroom ceiling… Wherever you put it, make sure you can see it, so you to stay true to it, no excuses accepted.
Another Option to Pay your Debt off Fast
There is another way to pay your debt off fast, which is obtaining a consolidation loan. The amount of this loan is enough to completely pay off your debts, leaving you with one monthly payment to your lender. You must go speak with your lender, telling him or her why you need a consolidation loan. After a given amount of time, you’ll be notified as to whether or not you’ve been approved. If you are approved, your debts can be paid off in a couple of days. It doesn’t get much faster than that!