by Susan Paige
Life’s so unpredictable. When financial tumult hits you, the only way out for you may be to borrow some money. But knowing how to get rid of debt can be a difficult thing, especially if you borrowed money without having a proper repayment plan. In the end, you may need to get another loan to pay the existing one.
The good news is that you can get rid of debt without getting another loan. Here are some useful tips for you.
1. Try the Snowball Method
The debt snowball method is one of the best ways to get rid of your debt. It aims at speeding up loan repayment by paying a little more than the minimum amount.
To effectively use this method, you will need to identify all the debts you have. Whether it’s a mortgage loan or a credit card debt, make sure you list down all debts.
Once you’ve identified them all, try to settle the smallest debt with all the money you’ve got.
At the same time, ensure to maintain minimum payments on the remaining debts. Once you’re done paying the minimum owed amount, you can go on to the next debt on the list.
In the end, you’ll be able to pay off all your debts with ease.
2. Work Extra Shifts to Make Extra Money
While applying the snowball method will consistently help you pay off your loans, taking up extra shifts at work to earn more money will significantly boost your chances of being debt free.
Whether it’s babysitting, teaching online or running errands for other people, the extra money you earn can go a long way in hastening your debt-clearing efforts.
Everyone has a skill they can use to earn some extra bucks. Utilize yours to earn some money on the side. If you are a student or fully employed, you will be surprised at how a side hustle can relieve you off overwhelming debt.
3. Sell Your Shares at a Premium Price
If you have invested in stocks, you can sell them directly to the company from which you bought them at a higher price. You can then use the money to settle your debts. This is known as buyback of stocks.
You can learn more about how it works here.
4. Cut Your Spending
Reducing your monthly expenditure can also help you settle your debts. The best way to achieve this is to reduce your spending so that it only comprises basic or essential expenditures.
Employing the bare-bones budget strategy can help you achieve this with ease.
This strategy requires you to only spend on things that are absolutely necessary. This way, you’ll have money to settle your debt.
Learning How to Get Rid of Debt Is Key to Achieving Financial Prosperity
Getting rid of any debt can be daunting. But it starts with acknowledging the seriousness of the matter.
Thereafter, you can go ahead to use the tips provided above. Attributes such as discipline and commitment will be vital to successfully clear your debts.
Need more insight on how to get rid of debt? Feel free to check out our debt reduction tools and resources.