5 Ways To Clear Your Debts Quicker

However you got there in the first place, making the decision to clear your debts is an important one. Getting rid of your debt and learning to manage your money will help benefit your financial situation and boost your credit rating. Don’t be fooled, unless you enjoy a windfall, it’s not going to be easy. There are, however, some things you can do that will help you to clear your debts quicker. Help tackle your debts with these five suggestions.

1. Prioritize the highest interest debts first

When the interest rates on your debts are high, it could take you longer to pay them back. It also means that if you’re only repaying the minimums, you could find yourself paying back more money overall. Work out what your highest rates are, and aim to pay these back first. You can allocate more money a month to these debts to help pay them back quicker, remembering to ensure that at least the minimum repayments are covered on your other debts.

desk macbook writing color money office business settlement design learning calculator documents billing taxes binder finance accounting bookkeeping folders secretariat personal computer hardware

Image: Pxhere

2. Earn extra money

If your current earnings aren’t enough for you to make significant dents in your debts, then seeking additional income could be the answer. You don’t have to take on a second job (although you could if you were willing), but there are ways you can make money online on a more casual basis. These extra payments can be put towards clearing your debts, helping you make larger repayments without having to worry about your other outgoings.

3. Consolidate your debts

There are several benefits of debt consolidation programs that can make it easier for you to clear your debts. Provided you can get a loan with a good interest rate, you could end up paying back less than you would if you paid back all of your debts individually. It also makes it easier to manage your repayments – with just one payment to worry about each month rather than multiple payments.

4. Create a debt repayment budget

Nobody likes to use the word budget, but if you’re going to pay your debts off quicker then it needs to be done. There are ways to budget while still maintaining your lifestyle, which will help you take better control of your finances to help you to get debt-free quicker. Think of any lifestyle changes you need to make as temporary, you’ll have more money freed up when your repayments are gone so keep that end goal in sight.

5. Reduce your overall spending

Another way you could reduce your debts further is to embrace minimalism when it comes to spending.  While it may be a challenge, living a more minimal lifestyle can have its benefits. With less clutter, you’ll be much less stressed and your efforts will also help to save the environment. Even if it’s just a year-long challenge, this sort of lifestyle change could help make it easier for you to become debt-free.

If your aim is to clear your debts in as little time as possible, you’re going to need to make some changes. Give some of the tips above a try and get yourself on the road to becoming debt-free.

[ Tagged In ] , , , ,