Got Debt? Here’s How To Pay It Off Easily
March 2, 2020 | Louis Tully
Debt is completely stressful. Whether it’s debt from school, credit card bills, your mortgage, or something else, it’s all demanding. You could be drowning in it with no idea how or where to even begin to tackle it. It’s not like the bills stop coming in, so how do you even deal with the debt you have if more debt keeps accumulating? It is a lot to deal with. But there are actual ways to pay off your debt, and it doesn’t have to be complicated processes that give you countless headaches. There are actually ways you can pay off your debt easily.
Pay Off Your Most Expensive Interest Rate First
This option is known as the “debt avalanche” because you are tackling the biggest to the lowest. The way it works is like this:
- You list your debts based on their interest rates from highest to lowest.
- You pay the minimum balance on your other debts.
- While you are paying the minimum balances of your other debts, you focus all your attention on fully paying off your debt with the highest interest rate.
- Once that is paid off, you go to the next highest until all of your debt is gone.
The good thing about this option is, once you pay off your debt with the highest interest rate, you’ll free up a lot of money to tackle your other debts. The only possible downside is this option takes a little time for you to actually see any improvements. But if you keep up with it, you will see your debt shrink.
Put A Pause On Credit Card Spending
Shopping with a credit card is a breeze. All you have to do is swipe and you are out of the store in much less time than if you would have paid in cash. The issue is, it is so easy shopping with the credit card that you completely lose track of how much you are actually spending. Within a blink of an eye, your credit card debt could be huge! To stop racking up the credit card debt, quit using your credit card. Start paying for what you need in cash. This way, you are stopping your credit card debt from accumulating and you know for sure how much you’ve spent in a given day or week.
Sell Your Useless Items
We all have items in our homes that don’t serve a purpose anymore. Instead of throwing those items away, why not make money off of them? Gather up all your things that you no longer use but someone else could and sell them! You can do a traditional garage sale or use sites like Craigslist or Facebook to sell your stuff. Once you start selling, you can use that money to start paying off your debt. Depending on how much stuff you are willing to part with and how much you make, you could be on your way to decreasing your debt!
Pay Your Lowest Debt First
Completely different from the “debt avalanche”, this option is called the “debt snowball”. The way this one works is like this:
- List your debt from smallest to lowest – ignoring the interest rate.
- Pay the minimum balance on all of your debts except the smallest debt.
- Pay your smallest debt in full as soon as you can.
- Once your smallest debt is paid, go on to the next smallest until all your debt is paid off.
The benefit of this method is that you will win these small goals, encouraging you to keep going. Plus, it’ll be a little quicker than the “debt avalanche” method. The downside of this is your interest rates. Since you aren’t taking those into account when you are listing your debts from smallest to lowest, you will have more to pay in the future – especially when it comes to the debts with the higher interest rates. But with this newfound momentum, you could find a way to actually make progress on your debt!
If All Else Fails, Try A Title Loan Or Signature Installment Loan From Wisconsin
We know how difficult it can be to manage your debt. Especially when a financial emergency comes up. When you need that little bit of financial relief, a title loan or a signature installment loan from Wisconsin Auto Title Loans could offer some breathing room. The process for both is simple. Just start by filling out our online form and we will give you a call to tell you what else needs to be done. Start paying off your debt today with our help!