Tips to Get Out of Debt Faster

Tips to Get Out of Debt Faster

Tip to get out of debt faster

Living a debt-free life is one of the dreams of many people. However, paying down your debt is easier said than done. Read and follow the tips to get out of your debt faster.

Some people struggle to keep up with their monthly bills and become overwhelmed with the amount of debt they have to pay. In these circumstances, it’s easy to “stick your head in the sand” instead of tackling the issue head-on. This approach only means you’ll be off track for longer, making it harder for you to recover.

In order to help you take back control of your financial situation, we’ve put together some helpful tips to get out of debt faster. Please get in touch if you need help developing a financial plan that’s custom to your situation. The following options may not be the best solution for you.

Pay more than the minimum monthly payment

Paying only the minimum amount due will keep you in debt for longer. Paying more than the required monthly payment will help you save on interest and speed up the payoff process.

Cut down your expenses

If you’re living pay to pay because of your bills, you might want to consider cutting down your expenses, especially your unnecessary spending and expensive habits. And while you’re living on a strict budget, use the money you save to pay down your debts.

Get a part-time job or a side hustle

Earning more money can improve your capacity to clear your debts. You may have an untapped skill you can use to earn more. Check out outsourcing platforms online or see who else you can collaborate with.

Use the debt snowball method

The debt snowball method works like this: first, list down all your debts from smallest to largest. Next, commit to make minimum payments on all loans except for the smallest one, which you should pay as much money towards as you can.

Once you’ve paid off the smallest loan, move on to putting all your excess funds to the second smallest while paying the minimum amount due for the others. Do this until you’re debt-free.

Use “found money” to pay off your debts

“Found money” could be an annual salary increase, a bonus or commission, an inheritance, or maybe a tax refund. Whatever that may be, if you come across an unusual source of income, you can use the money to reduce your debt or at least commit a certain percentage of it.

With discipline and commitment, it is indeed possible to achieve a worry-free life without debts. However, if you need a more focused debt paydown strategy from an expert, get in touch with us today and let’s work out a plan for your specific situation.

Get in touch

Book your meeting with Sarah today to know more about the tips to get out of debt faster!

 

Book a discovery call with Sarah

 


PS. Whenever you’re ready, here are 3 ways we can help you eradicate financial stress in your accounting firm or professional services business – faster …

  1. Sign up to our LinkedIn newsletter, published weekly. You can sign up here: Eradicating Financial Stress

  2. Get our book “Wow – I’m in Business! Your journey from overwhelmed to organised.” It’s full of insights, solutions and downloadable resources you can implement into your business immediately. Click here for your copy: Wow … I’m in Business! – Miss Efficiency

  3. Book a time with me privately and we’ll do a deep dive into your Xero file to help you optimise for cash flow, efficiency and growth. Click here to book: Book a time with Sarah

 

 

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