6 Tips for Getting Out of Debt Quickly

6 Tips for Getting Out of Debt Quickly

America is a nation in debt. According to the statistics, the average American carries over $6,000 in credit card debt and more than $24,000 in non-mortgage debt, including car loans. Also, according to a Pew Research study, most Americans spend more every month than they earn by using credit to bridge the gap. Therefore, it is not surprising that there are many people in the United States struggling with debt. If you are one of them and do not want to struggle anymore, here are some strategies on becoming debt-free.  

The Snowball Method 

List all of your debts from smallest to largest. Once that’s done, use excess funds on the smallest balance while you make minimum payments on your larger loans and debts. Once you pay off the smallest balance, you can start using that money to pay off the next-smallest debt, and so on. The purpose of the snowball method is to pay the smallest debts first while saving the largest debts for last. 

Earning Extra Money

Earning extra money can significantly speed up the process of getting out of debt. We all have skills or talents that we can monetize, including babysitting, yard work, gardening, cleaning, and more. There are numerous websites where you can easily find these small jobs. You can also ask your friends and relatives for work because they may know someone able to give you a job. 

Cutting Your Expenses

Cutting your expenses is probably one of the most efficient and fastest ways to become debt-free, especially if you do this in combination with other methods. An effective tool that you can use is a bare-bones budget. This will look different for everyone, but the goal is the same —  get rid of any extra expenses, such as nights out, cable television, and gym memberships. Living on a strict and limited budget will allow you to use more money to pay your debts. 

Getting a Seasonal Job

During the holidays, many local retailers look for seasonal workers who can help during the busy season. The most common seasonal positions include retail, shipping and delivery jobs. During summertime, yard work and pool cleaning positions are available.  

Using “Found Money”

Throughout the year, many people come across some type of “found money” — an annual raise, a bonus at work, inheritance, or just a gift. When you gain an unexpected source of income, you can use this extra money to pay off your debts. If you are using the snowball method, this money can be used to pay off the smallest debt first. 

Sell Your Home

If you have debt that is creating a serious financial burden for you, then selling your home may be the best option. Selling your property to pay off your debt is a serious decision that you should not rush into. If you do decide that selling your home is the best decision, consider using a cash home buyer who can buy your home for cash. Make sure that selling is worth it and that you receive a fair offer for your property. 

Sell Your Home Fast With We Buy Houses Cincinnati

If you decide that selling your property in the Cincinnati area is the only possible solution, then We Buy Houses Cincinnati is ready to help you and take the stress out of the selling process. We will buy your house in any condition, so you do not have to worry about any repairs and remodeling. Moreover, the process is quick, and you will receive cash immediately. All you need to do is to fill out the form online, or just give us a call at (513) 878-1677.