Ticker Banner

Sunday, June 23, 2019

9 Ways to Get Out of Debt Faster

Debt is an amount of money borrowed by an individual from another party. Many people use debt as a method of making large purchases that they could not afford by paying interest on them. Many get into huge debts and getting out of it can be frustrating and confusing experience if you don’t have the right plan. Some people simply try to avoid these issues and ignore the problems they are already in. However, if these debt issues are not dealt with, it will only escalate the problem much further. This can lead destroying your financial dream. With debt, it will be impossible for you to be financially ahead to achieve early retirement. Before you want to build wealth through your investment, you’ll need to tackle those debts you acquire. So what are ways to get out debt faster?

1. Stop Using Credit Cards
If you want to get out of debt, you’ll need to stop using your credit cards. The more you swipe, the more your debt balance will be. It’s better to use cash from your debit card rather than from credit card. A cash advance via credit card generally cost you a steep cash-advance fee as well as a steep interest rate. In addition, interest start accumulating immediately after you take out the loan. 


2.  Pay More than the Minimum Payment
If you carry a credit card balance of $20,000 that has an average 15% APR, and if you make only the minimum payment of 3% of your credit card balance, which will take you nearly 21 years (253 months) to pay it off and pay $14,079.41 in interest charges. The minimum payment on credit card debt is calculated as a percentage (usually 2 to 3%) of your total current debt balance. The minimum payment drops as your balance is paid, however because of compound interest, it will take decades if you only pay the minimum amount per month. In addition, that’s only if you don’t add additional debt to your credit card balance which can be a challenge on its own. Trust me it’s really difficult by not adding more debt to your balance. I have seen people who increase their debt balance years after years. Their credit card balance used to be below $10,000 requiring paying the minimum payment of only $300 a month, but after years ahead of not dealing with the debt problem and compulsion spending, the credit card balance increases to $30,000 and now the person require to pay the minimum monthly balance of $900 a month. Trust me! Sometimes bad incident occur such as your car broke down, or it can be sickness that require you to be hospitalized. Unexpected expenses will appear along the way of your life and that is usually the reason you’ll need to borrow more using your credit card. You don’t want to keep your compulsive spending and end up with $100,000 in credit card debt that require you to pay the minimum monthly payment of $3000. It will be a total nightmare!

Whatever debt you are carrying, whether it is credit card debt, personal loans, student loan, or even business loans, it’s better to pay them down sooner than paying the minimum monthly payment. By doing so, it will not only help you to save on the interest payment throughout the life of your loan, but it will also speed up the payoff process.


3. Try Using the Debt Snowball method
The Debt Snowball method is a debt reduction strategy in which you start paying of the smallest debt account first to largest debt account, gaining the momentum as you tackle out each balance. The first step, you are required to list down all the debt you owe from the smallest to the largest. You will then start paying the smallest debt balance in as much as possible, while paying the minimum payment on the rest. Then again when the smallest debt account is paid in full, you start paying on the next smallest debt balance. In theory, by the time the final debts are reached, the extra amount paid toward the larger debt will grow quickly, similar to a snowball rolling downhill gathering more snow.


4. Start Budgeting and Start being a Smart Shopper
Take a good look where all your monthly paycheck goes to. By budgeting you are able to know all the monthly expenses you have. You are then able to cut those unnecessary expenses and be a smart shopper. This way you are able to save more money to pay off your debt faster. For example, you can cut the cable television since you can watch most entertainment content online in today’s time. Another example is to stop eating outside. I understand going to restaurant or hitting up the drive-thru is so much simpler than cooking at home. However, cooking at home can save more money to tackle those debts you have and it can be healthier for you as well. Be creative, there are many ways you can be a smart shopper to get the deals that can save you some extra cash. For example, you can shop for clothes when there are sale seasons instead of buying it during at regular price. My recommendation to keep track of your budget is to download an app on your smart phone called Personal Capital. I personally use this app to keep track of my finances. The reason why I love this app so much it’s because of its simplicity and enable me to keep track of all my expenses.


5. Start Selling Your Unwanted Things.
I bet there are so many unwanted things that you rarely use lying around in your house. You can do the old fashioned way by having a garage sale for your spare items. Otherwise, by placing those items on craigslist.org or other source of online marketplace such as ebay.com which can help you get some extra bucks. Trust me; you probably won’t have those credit card debts if you haven’t bought many things that you don’t really need. I personally have been selling unwanted things that I have on craigslist.org. Even when I’m not in debt, but it sure does give me some extra cash and most importantly it helps towards my house from getting cluttered with unwanted things.


6. Sell the car!
I know this sounds insane. However if you bought a car that is too expensive for you to own, it’s better to sell it and buy another car that you can really afford. I would recommend an older model car because it usually has a cheaper price range since its price has depreciated from its original cost. The average monthly payment for a new car is $523. Imagine how much faster your debt snowball move if you pay an extra of $500 month to your debt balances. In addition, a car is a depreciating asset that goes down in value over time. I know people love their car like kids love their toy, but cars only take more money from you since there are expenses for owning it. It’s better to sell your fancy car now rather than later since these assets are actually liabilities that go down in value. You can have those expensive car or other fancy toys when you are financially stable. Remember! There will always be a newer and better car in the future. Its okay to let go of this experience now, since there will always be a next time. It’s never too late when you are financially stable to have those stuffs. Learn that delay gratification will pay off.


7. Pick Up a Side Hustle or Part-Time Job
Attacking your debts with the debt snowball method will speed up the process of paying down your debt; however earning more money can amplify your efforts even further. You can add additional monthly cash flow such as being an Uber or Lyft driver. Aside of that you can take additional job such as being a pizza deliverer or taking more hours at your work place. In addition, there are many great website where you can take a side hustle such as www.upwork.com or www.taskrabbit.com. There are people making a living using these websites. There are many ways you can monetize your skills and talents, so be creative! As for me, aside as working in my dad’s company, I try to become a finance blogger and monetizing it with google adsense. This can be a great way to earn extra passive income.


8. Look for a Lower Interest rate Credit Card
If your credit card is charging you a high interest rate that make you unable to move ahead, it’s worth calling your card issuer to negotiate for a lower interest rate. It’s common to ask for a lower interest rate, and if you have a good credit history, there’s a possibility of getting a lower interest rate. This way you can reduce paying additional towards the interest of your credit card balance.


9. Drop Expensive Habits
If you’re in debt and consistently coming short each month, checking out your habits of spending is a great idea. No matter what, you need to look into detail on how you’re spending your money daily. That way you can evaluate whether those purchases are worth it. By doing so, you can find ways to minimize the cost.

If you enjoy smoking cigarettes or drinking alcohol, just quit. Those habits do nothing good to you except ruin your life and your long-term goal. Not only they can cost you financially, but they are also unhealthy. Being healthy is a great insurance towards your long term life. Not only it will prevent you from seeing the doctor which will cost you more money, but you will live a healthy life style. Try finding activities that are beneficial for you. For example, working out at the gym can be a hobby that is great for your health but it doesn’t cost much. I personally choose lifting weight and working out at the gym as my hobby since it is beneficial for my health and it feels rewarding when I feel fit and healthy.

Whatever your biggest temptation is, it’s better to avoid it altogether when you are still in debt. When you’re tempted to spend, it can be difficult to avoid new debts, let alone paying off the old one. Don’t end up like the people who constantly add more debt because they love to purchase things that may be unnecessary for them. So avoid those temptation, you can always get those hobbies once you are done paying off your debt. 


In Conclusion
It’s effortless to continue living in debt and living pay check to pay check if nothing bad occurs. However, when there is a disaster such as an accident, or unexpected sickness occur. You might need to take additional loan to your debt balance which will of course increase your minimum monthly payment. Trust me; it will be a nightmare when your debt balance only increases each year. I have seen people whose debt only increases and difficult for them to get out of the rat race. Not only debt is tiring and difficult to get out of if you procrastinate, it will slow down your financial goal towards early retirement. There’s a saying “Live like no one else so later you can live like no one else”. So be responsible with your finances, and stay out from those credit cards and most importantly start doing something about it NOW!

26 comments:

  1. Replies
    1. IEEE Final Year Project centers make amazing deep learning final year projects ideas for final year students Final Year Projects for CSE to training and develop their deep learning experience and talents.

      IEEE Final Year projects Project Centers in India are consistently sought after. Final Year Students Projects take a shot at them to improve their aptitudes, while specialists like the enjoyment in interfering with innovation.

      corporate training in chennai corporate training in chennai

      corporate training companies in india corporate training companies in india

      corporate training companies in chennai corporate training companies in chennai

      I have read your blog its very attractive and impressive. I like it your blog. Digital Marketing Company in Chennai Project Centers in Chennai

      Delete
  2. Nice post. Thanks for sharing! I want people to know just how good this information is in your article.
    It’s interesting content and Great work. nice to read.
    Reactjs Training in Chennai |
    Best Reactjs Training Institute in Chennai |
    Reactjs course in Chennai

    ReplyDelete

  3. Are Yorkies good for first time dog owners?
    teacup yorkie for sale
    The Yorkshire terrier is a great starter dog for those who want a little lap dog. This breed is affectionate towards its owner and may even act protective around strangers.
    The Yorkie has a moderate energy level and only needs basic exercise.

    yorkie puppies for sale good for first time owners?
    yorkie puppies for sale
    It is the ideal pet for people who don't want to deal with pet fur at home or in their cars. This is the ideal pet for first time dog owners, since it trains easily and needs only moderate grooming maintenance. Yorkie poos are good with kids. It will play with them, is energetic and affectionate.

    Are Yorkie hypoallergenic? Yes
    Are Yorkie Poo good for first time owners?
    yorkie for sale
    It is the ideal pet for people who don't want to deal with pet fur at home or in their cars. This is the ideal pet for first time dog owners, since it trains easily and needs only moderate grooming maintenance. Yorkie poos are good with kids. It will play with them, is energetic and affectionate.
    teacup chihuahuas for sale

    Are Yorkie Poos good dogs?
    yorkies for sale

    https://www.newdaypuppies.com/

    ReplyDelete

  4. Is a Yorkie a good family dog?
    yorkie puppies for sale
    Yorkies, like many other Toy breeds, make good pets for people; they're especially good for senior citizens, people with medical issues, and those who may worry about the size and strength of a larger dog. ... They're loving, devoted, and very affectionate: This makes them great personal companions and good family pets.

    Do Yorkshire terriers bark a lot?
    teacup yorkie for sale
    Yorkshire Terriers are little dogs with huge personalities. yorkies for sale With those huge personalities come a fierce territorial bark. Any time your phone rings, someone speaks or knocks on your door, or your doorbell chimes, your Yorkshire Terrier will likely bark. Outside noises aren't even required for barking for some Yorkies. yorkie for sale near me

    How much do Yorkshire terriers cost?
    yorkies puppy for sale
    Typical Yorkie prices range from $1,500 to $3,000, but the cost can fall far below or above that range. Prices will vary based on the puppy's lineage, appearance, health, and the breeder. It's also possible to adopt an older Yorkie for significantly less through a rescue shelter.
    https://www.yorkiespuppiessale.com/

    ReplyDelete
  5. How long does a Yorkie live? 13 – 16 years
    Are Yorkies cuddlers?
    A lover of all things comfortable, the Yorkshire terrier enjoys cuddling with loved ones and snuggling into everything soft and fluffy. And for you, their silky coat isn't too bad for petting. https://www.newdaypuppies.com/

    Adorable Teacup and Toy AKC Yorkie Puppies
    We have adorable Yorkshire Terrier puppies male and female (she is pictured with the bow).The little girl was born on and the male was born on. yorkie teacup for sale Both puppies have started potty training and have had all sets of puppy shots and deworming. They both come with AKC papers.The girl is very petite and has an adorable baby doll face. yorkies for sale near me She is a teacup and will mature to be around just lbs. She is very gentle and easy going She is the princess in our home and loves to be held.The male is full of spunk and is super playful He will mature to be lbs and would make an awesome family dog. He has a gorgeous silky coat and adorable teddy bear face.Both puppies are AKC registered and will come with a health guarantee shot record and sample puppy food. teacup yorkies for sale, teacup yorkie puppies for sale

    Adorable Teacup and Toy AKC Yorkie Puppies is a Female, Male Yorkshire Terrier Puppy for sale in US. Adorable Teacup and Toy AKC Yorkie Puppies by newdaypuppies for Female, Male Yorkshire Terrier Puppies. yorkshire terrier for sale

    ReplyDelete

  6. https://www.chihuahuapuppiesforsale1.com/
    https://www.myppuphouse.com/
    https://www.yorkiespuppiessale.com/
    https://chowchowpuppiessale.com/
    http://www.globalkittens.com/



    ReplyDelete
  7. Is a Yorkie a good family dog?
    Yorkies, like many other Toy breeds, make good pets for people; they're especially good for senior citizens, people with medical issues, and those who may worry about the size and strength of a larger dog. ... They're loving, devoted, and very affectionate: This makes them great personal companions and good family pets.

    Do Yorkshire terriers bark a lot?
    yorkies for sale
    Yorkshire Terriers are little dogs with huge personalities. teacup yorkies for sale With those huge personalities come a fierce territorial bark. Any time your phone rings, someone speaks or knocks on your door, or your doorbell chimes, your Yorkshire Terrier will likely bark. Outside noises aren't even required for barking for some Yorkies. yorkie puppies for sale

    How much do Yorkshire terriers cost?
    yorkie for sale near me
    Typical Yorkie prices range from $1,500 to $3,000, but the cost can fall far below or above that range. Prices will vary based on the puppy's lineage, appearance, health, and the breeder. It's also possible to adopt an older Yorkie for significantly less through a rescue shelter. yorkie for sale

    ReplyDelete

  8. Are Yorkies good for first time dog owners?
    yorkshire terrier for sale
    The Yorkshire terrier is a great starter dog for those who want a little lap dog. This breed is affectionate towards its owner and may even act protective around strangers. teacup yorkie puppies for sale The Yorkie has a moderate energy level and only needs basic exercise.

    Are Yorkie Poo good for first time owners?
    tea cup yorkie puppy for sale
    It is the ideal pet for people who don't want to deal with pet fur at home or in their cars. This is the ideal pet for first time dog owners, since it trains easily and needs only moderate grooming maintenance. Yorkie poos are good with kids. It will play with them, is energetic and affectionate.

    Are Yorkie hypoallergenic? Yes
    yorkshire terrier for sale near me
    How much does a Yorkie Poo puppy cost?
    Yorkie Poo puppies range in price from $1,000 to $3,500, depending on the puppy's coloring and the breeder.

    Are Yorkie Poos good dogs?
    yorkie puppies for sale
    The Yorkipoo is a gentle and loving dog who can do well with children. He's not recommended for homes with very young children, since he can be easily injured when improperly handled. A Yorkipoo can make an excellent companion for an older, more considerate child.





    ReplyDelete

  9. Do Yorkshire Terriers bite?
    Puppies bite beginning at a very young age. They learn this behavior while still with their littermates, long before you bring your Yorkie puppy into your home. yorkshire puppies for sale If the biting can be corrected while a Yorkie is still a puppy, training works best. ... This will be very similar to when a puppy yelps in pain. teacup chihuahuas for sale

    What are Teacup Yorkies?
    Teacup Yorkie is a smaller version of the same pure breed Yorkie, also known as Toy Yorkie or Micro Yorkshire Terrier. It's a tiny dog breed at about 5 to 7 inches tall, weighing between 2 to 4 pounds. The average lifespan of the Teacup Yorkie is around 12 years. yorkie terrier for sale

    Why do they cut Yorkies tails off?
    https://www.newdaypuppies.com/teacup-yorkie-puppies-for-sale/
    The main reason that Yorkie tails are docked are for aesthetic purposes. The natural tail is long and sticks up beyond the height of the head. A docked Yorkie has a tail that sticks straight up below the level of the head, which creates clean lines when the hair is worn at show length. yorkie puppies for sale


    ReplyDelete


  10. Are Chihuahua puppies hard to train?
    chihuahua puppies for sale
    Chihuahuas are intelligent, strong-minded dogs that like to do their own thing. This can make them stubborn, earning them a reputation for being hard to train. However, reward-based training methods do appeal to a Chihuahua and there's no reason why they can't be trained to be obedient, just as with any dog

    Chihuahuas Have Fun, Playful Personalities
    teacup chihuahuas for sale
    Though chihuahuas are loyal and affectionate with their owners, they are anything but dull and love to play! However, no two chihuahuas are the same, so if you have a friend with a chihuahua, your pet is likely to be quite different and unique

    What food is bad for Chihuahua?
    teacup chihuahua for sale
    Foods Your Chihuahua Shouldn't Eat
    Alcohol. Alcohol (ethanol) is highly toxic to dogs. ...
    Caffeine. Coffee is one of the world's most popular beverages, with roughly 83% of the United States adult population consuming it on a daily basis. ...
    Chocolate. ...
    Some Fruit Seeds, Pits and Cores. ...
    Garlic. ...
    Grapes and Raisins. ...
    Hops. ...
    Onions.
    chihuahua puppy for sale

    The easiest way to adopt a Chihuahua would be through a rescue that specializes in Chihuahuas. A great place to start would be by starting a breed search on https://www.chihuahuapuppiesforsale1.com/chihuahua-puppies-for-sale-near-me/. The search will show you all the available Chihuahuas in your area.
    chihuahua puppies for sale near me


    ReplyDelete

  11. https://www.myppuphouse.com/
    https://www.yorkiespuppiessale.com/
    https://www.yorkiespuppiessale.com/teacup-yorkie-for-sale/
    https://www.yorkiespuppiessale.com/yorkies-puppy-for-sale/
    https://www.yorkiespuppiessale.com/yorkies-for-sale-near-me/

    ReplyDelete
  12. https://www.chihuahuapuppiesforsale1.com/
    https://www.chihuahuapuppiesforsale1.com/chihuahua-puppies-for-sale-near-me/
    https://www.chihuahuapuppiesforsale1.com/chihuahua-for-sale/
    https://www.chihuahuapuppiesforsale1.com/chihuahua-puppies-near-me/
    https://www.chihuahuapuppiesforsale1.com/teacup-chihuahuas-for-sale/

    ReplyDelete

  13. https://www.newdaypuppies.com/
    https://www.newdaypuppies.com/teacup-yorkie-puppies-for-sale/
    https://www.newdaypuppies.com/tea-cup-yorkie-puppy-for-sale/
    https://www.newdaypuppies.com/yorkshire-terrier-for-sale-near-me/
    https://www.newdaypuppies.com/yorkie-terrier-puppy-for-sale-near-me/

    ReplyDelete
  14. today, I used to be just perusing along and happened upon your blog. simply needed to announce decent weblog and this text helped me loads, because of which i've found precisely I used to look. https://crackdj.com/nordvpn-crack-2022/

    ReplyDelete
  15. I go to your blog much of the time and direction it to the total of people who wanted to highlight on happening their comprehension resulting to ease. The way of composing is stunning and in addition to the substance material is culmination score. gratitude for that discernment you give the perusers! FileViewPro

    ReplyDelete
  16. Your substance material is nothing prompt of throbbing in bunches of ways. I guess this is alluring and eye-start texture. much obliged accurately a huge amount for stressing generally your substance material and your perusers. Happy Friday Images And Quotes

    ReplyDelete