5 of the Best Ways and Strategies for Getting Rid of Debt

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The average American is facing about $38,000 in personal debt. No matter how much debt you are facing, there are some simple things you can do to lower your personal debt. 

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By getting rid of debt, you can improve your credit score and free up your income to save or invest and build your wealth.

1. Pay More Than the Minimum 
This one is a no-brainer, paying more than what your minimum payment requires means that you will pay the principal down faster. The more of the principle you pay, the less interest you incur and the less you pay overall.

Let’s assume that you owe $10,000 in credit card debt. You have an interest rate of 18%.

If you only make $200 monthly payments, it will take you 94 months to pay off. Plus you will pay an additional $8,622 in interest on top of the $10,000 you owe.

If you make a $500 payment every month, it will take you 32 months to pay off. You will pay an extra $2,627 in interest.

So as you can see, doubling your monthly payment will cut down the time it takes you to pay back and significantly reduce the amount of interest you need to pay.

2. Use the Snowball Method
Start by listing out all of the debts that you have in order of smallest to largest. Any time you have some excess cash put it towards your smallest debt. Continue to make the minimum payment on all of your other debts.

Once you pay off your smallest debt, put all of your excess money towards the next smallest debt you owe. Work your way through your debt by dedicating your excess funds to the smallest debt until you have paid off all of your debt.

The idea is that as you pay off debt, the amount you can pay should increase as you snowball your payments larger and larger.

3. Starting Selling Things
Take a look around your home. Do you have clothing, toys, or other items that you don’t use? Selling off items that you no longer use is a great way to declutter your life and generate some extra cash.

You could have a good old fashioned garage sale. Or you could sell them online.

4. Tighten Your Budget 
Start by taking a look at your budget and determining what you can get rid of. Cut out buying fancy coffee, going out to eat, and shopping for clothing. How bare-bones you get will look different for everyone.

For some, it will mean cutting out professional haircuts and cable. For others, it will mean cutting their grocery bill by looking for sales and coupons.

5. Negotiate 
One way you can reduce your debt fast is by negotiating with your lenders. This can be tough to do on your own so a service such as Alleviate Financial Solutions Debt Settlement can help you.

They will contact your lender and make an arrangement where you make a one-time larger payment an in return; they will lower your monthly payment, or lengthen the time you have to pay, or significantly reduce the total you owe.

Getting Rid of Debt Made Simple
Try these five tactics, and before you know it, you’ll be getting rid of debt. Once you pay off your debt, you’ll be able to save or invest to increase your overall wealth.

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Summary
Title
5 of the Best Ways and Strategies for Getting Rid of Debt
Description
Being in debt can create a lot of stress in your life. Check out these different ways and strategies that can help with getting rid of debt.

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