5 Tips for Getting Out of Debt Quickly | We Buy Austin Houses
It’s a sad truth - going into debt happens way too easily. Whether you’re clicking the Buy Now button on Amazon a little too often, or you’ve had an expensive emergency, racking up debt can be fast and dangerous. It doesn’t take long to get in over your head, and leave you feeling overwhelmed. But it’s not too late to reverse the problem. Millions of people overcome debt every year, and you can too. You just need a good plan, and these five tips can help with that.
1. Make a Budget
The first step in getting out of debt is making a budget. Your goal is to account for every single dollar you make and spend — literally every dollar. It’s a meticulous, sometimes grueling process, but it’s vital. When you know how you spend every dollar, you can find out where to make cuts and how much more income you really need to survive and get out of debt.
2. Cut Your Spending
We all work, so it’s not always easy to just go make more money. Instead, the best place to find extra money is by cutting expenses. There will be sacrifices to make, but keep the end goal in mind. Maybe you can cut an extra streaming service you don’t really need. Maybe you can eat a few more meals at home and save money there. Or you may need to dig deeper and sell a car and become a one-car household. With your budget as a guide, you can see how much money you really need, and how much you can have available to send to your creditors.
3. Increase Your Income
Even though you’re already working, there are ways to make some extra money without taking on an additional full-time job. You can try a garage sale to earn a little money on possessions you no longer need. Sometimes, a couple hundred extra dollars is enough to kill one of your monthly payments, allowing everything else to snowball in your favor from there.
You can also explore the side-hustle game. You can find independent contracting gigs for almost any skill. Whether you are driving for Uber, picking up handyman jobs, or running an Etsy shop, there are countless ways to make a little extra cash. These gigs might not make you rich, but an extra $50 a week might make all the difference in your debt reduction plan.
4. Prioritize High Interest
Your added income and reduced expenses should provide you with additional money you can use to pay off your debts. The ideal plan is to make minimum payments on everything and then go aggressively after one debt at a time. The debt receiving your aggressive payments should usually be the one with the highest interest. There is a major exception. If you can eliminate a small debt very quickly, do that first. The money that isn’t going to a debt you’ve paid off is now free in your budget and can help you snowball your money towards eliminating all of your debts.
5. Get Debt Relief
There are a lot of resources that can help with debt. The Federal Trade Commission website is full of them, and you can find expert help to assist you in making a good plan. Debt consolidation loans, debt aid programs, and even renegotiation crediting terms can all help.
When things are really tough, sometimes your best bet is to get rid of your largest debt: your mortgage. At We Buy Austin Houses, we can help you sell your house quickly, easily, and for cash. You can clear your mortgage and find huge budget relief by getting rid of your largest expense. For more information, contact us online or call us today at (512) 598-9341.