4 Tips to Managing Credit Card Date After Losing Your Main Source of Income
April 30, 2020
Reasons Why Canadians Are in Debt – What to Know
May 9, 2020
Paying off all of one’s debts is not an easy task. Getting out of debt can take a long time. However, even with no money and no assets, living debt-free is completely possible.
To learn more about how to get out of debt fast, you may consider trying the tried-and-tested methods below.
- Boost your debt repayment percentage
Pay off large amounts of your outstanding balance within a few months. To do this, you can allot at least 15 percent of your paycheck to your credit card debt and loans. This way, you can not only pay down your outstanding balance much more quickly but also you can prevent accruing interest payments.
- Use your savings to pay down larger debts
Keeping extra cash in your bank account may give you a sense of security, but if you have high-interest rate debts, using a chunk of your savings to pay down some of your larger debts and eliminate your bills is a smarter move. Doing this will help you stop accumulating interest on those balances.
- Negotiate for a lower interest rate
Call your creditors and ask them if they can lower your interest rate. If you have a good relationship with them and have a satisfactory payment history and account standing, you will have better chances of reducing your interest rate. This will help you save on interest payments.
- Use your tax refund check to reduce your debt
It is easy to get tempted to splurge on a pricey item that you have been eyeing for months or go on a luxurious vacation with your tax refund check. However, it is best to use this to pay down your credit card debt or loan. By reducing your monthly payments instead of enjoying a short-term satisfaction of a costly purchase, you can ease your mind knowing that you have a lighter debt load over time.
- Sell items for extra cash
Declutter your living space and gather all items that you no longer need that you could sell for extra cash. The money you earn can be used to pay down a part of your debt and contribute towards your personal debt relief.
- Create multiple streams of income
Pay off your debt fast by making more money. To increase your income and personal debt relief, you can look for a side hustle or negotiate a raise with your boss. You can use that extra cash to eliminate your debt quickly.
- Do a credit card balance transfer
Transfer your high-rate debt to a zero percent deal by doing a credit card balance transfer. This way, you eliminate all your credit card interest, which frees up your cash flow and gives you additional money to help you finally get rid of your credit card debt.
Conclusion
Getting out of your credit card debt and your loan can help you gain complete financial freedom.
Your journey toward living debt-free can be challenging, but by following the proper tips and utilizing the correct strategies, you can get out of debt in no time.
To learn more about eliminating debt in your life, it is advisable to seek help from a reputable company that specializes in offering consulting services and debt solutions that are tailored to your needs.
If you need help in getting out of debt, reach out to us to learn more about how our debt helpers can help you with your personal debt relief. We’ve helped thousands of Canadians get out of debt, and surely we can help you do so as well.