How to Pay Down Debt Fast
Whether it is credit card debt, consumer debt, or student loans, many people will end up in debt during their lifetime. Understanding how to quickly pay off debt can reduce the stress of being in debt.
Take it One Debt at a Time
It can be overwhelming to try paying off multiple cards at once. If you have outstanding debt on several credit cards, consider making the minimum payments on all of the cards but focus on paying off the full balance on one card. A good place to start is the card with the highest interest rate or the one with the lowest balance.
Take your entertainment budget down to $0 for a few months. You can still have fun but be creative about it and then use that extra money to pay off a debt.
Get Rid of Unused Subscriptions or Memberships
Go through your charges and find expenses you don’t use. Still paying for a gym membership that you never use? Let it go. Subscribing to a magazine you don’t have time to read? Cancel it! Have premium movie channels or cable TV? Eliminate them!
Bring Lunch to Work
Packing your lunch every morning may sound like too much work, but think about how much that will save you. Or you can bring leftovers from the night before. The average person spends $10 a day eating lunch out. That is $200 a month that could be going toward a debt.
Set Automatic Payments
By scheduling automatic payments for all of your debts each month, you will become used to the money going out of your bank account. Plus, consider setting your payments for slightly higher than you want to help pay back your debt sooner.