9 Creative Ways to Pay off Your Debt
It’s no secret that Americans are struggling with debt. According to a recent study, the average household owes $5,769 in credit card debt alone. And that doesn’t include car loans, mortgages, and other types of debt.
9 Creative Ways to Pay off Your Debt
If you’re one of the millions of people dealing with debt, you know how hard it can be to get ahead. You may feel like you’re stuck in a cycle of payments and interest rates that never seem to go down. But there is hope. There are creative ways to pay off your debt and get your finances back on track.
1. Cut Up Credit Cards
If you’re struggling to pay off your debt, one way to speed up the process is to cut up your credit cards. By doing this, you’ll no longer have the temptation to rack up more debt, and you’ll be able to focus on paying off what you already owe. It is important to remember that while you physically may have cut up your card, it is still active. Contact the card issuer to officially close your account and make sure you do not have any fees that will continue to rack up debt.
2. Find Ways to Reduce Expenses
Reducing your expenses is another great way to free up some extra cash to put toward your debt. One way to do this is to create a budget and track your spending. This will help you see where you can cut back in order to save money. Another way to reduce expenses is to negotiate with creditors. If you’re struggling to make your minimum payments, reach out to your creditors and see if they’re willing to lower your interest rate or monthly payments.
3. Increase Your Income
If you’re struggling to find the funds to pay off your debt, then you need to figure out a way to increase your income. One way to do this is to get a part-time job or pick up some freelance work. If you make more money, you’ll be able to put more toward your debt each month and pay it off quicker. There are many different apps and websites that can help you find extra work.
4. Use Apps
Financial apps can be a great way to help you pay off your debt. By using apps, you can track your spending and see where you can cut back in order to save money. These apps can also help you keep track of your budget and make sure you’re not overspending. Another great feature of financial apps is the ability to monitor your credit score. This can help you keep an eye on your credit health and make sure there are no errors on your report.
5. Sell What You Don’t Need
If you’re looking for some extra cash to put toward your debt, then consider selling some of your unwanted items. There are many different ways to do this, such as having a garage sale, listing items on eBay, or using a consignment shop. You’d be surprised how much money you can make by getting rid of things you no longer need.
6. Utilize Cash Back Rewards
If you have a credit card that offers cash back rewards, be sure to utilize this feature when making purchases. This can help you earn some extra money that you can put toward your debt. Just be sure to pay off your credit card balance in full each month so you’re not paying interest on the money you’ve earned.
These cash back rewards may seem small at first glance, but when you add them up over time, they can result in a significant amount of money that can help you pay down your debt.
7. Use Coupons
Couponing can be a great way to save money on your everyday purchases and put money toward your debt. By using coupons, you can get discounts on items like groceries, clothing, and household goods. This can help you save a significant amount of money each month that you can put toward your debt.
Another great thing about couponing is that it’s a very easy way to save money. There are many different websites and apps that offer coupons, and most stores also have their own in-store coupons. You can also use online coupon applications, like Honey, which search for coupons and promo codes while you check out. All you need to do is print out the coupons you want to use and bring them with you to the store.
One word of warning when it comes to couponing, however, is to be careful not to overspend. Just because you have a coupon for an item doesn’t mean you need to buy it. Only purchase items that you would normally buy and use coupons for items that are on sale.
8. Shop at Thrift Stores
Trading in your shopping trips to the mall for trips to the thrift store can be a great way to save money. Thrift stores sell gently used items for a fraction of the price you would pay for them new. This can help you save a lot of money on your everyday purchases, and that money can then be used to reduce the amount of debt that you have.
9. Find Ways to Motivate Yourself
Finding unique ways to motivate yourself to pay off your debt can be a great way to stay on track. One way to do this is to set up a Debt Freedom Jar. You can use this to put your spare change in every night, which will help you visualize your progress and give you something to look forward to as the jar starts to fill up.
Also creating a chart of your progress can help you stay motivated. Each time you make a payment, mark it down on the chart. Seeing the amount of debt you’ve paid off can be a great motivator to keep going.
Finally, setting up some sort of reward system for yourself can also be helpful. For example, every time you pay off $5,000 of debt, you can give yourself a small reward like a new book or a night out. This will help you stay motivated and focused on your goal.
*Content provided by CreditAssociates