Thursday, 22 Oct 2020
Debt

9 Fastest Ways to Pay Off Debt Without Stress

The world may seem like a divided and contentious arena right now. If there is one thing we can all agree on, it is this: Debt sucks. Unfortunately, life can come at your pretty fast. You may have suffered a job loss, a health scare, or the foundation of your home is deteriorating. Or you may have spent too much on the morning that half caramel, half vanilla latte, decaf espresso heated only to 100° with non-fat milk, and caramel drizzle on top beverage.

How much debt are you in? If it is anything more than you can handle, then it is time to grapple with reality. And the reality is this: You need to tackle your debt loads now because it will eventually come back to haunt you, whether at the worst time possible (job loss) or when interest rates return to historical norms (if they ever do).

It may be easier said than done, but it is important to eliminate your debt. Sure, that’s great in theory. But what about in practice? Here are the nine fastest ways to pay off debt without any stress:

1. Pay off the high-interest debts first.

Servicing your debt is that noose around your neck that prevents you from trying to pay down the principal. When the interest on your debt – mortgage, credit card, or personal loan – is sky-high, it can be tough to get out of debt. Therefore, it is best to tackle your high-interest debt first, so that you can pay more toward the accrued sum of your other debts.

Being in debt is hard enough, so throwing it at interest will only add to the prolonged agony. The fastest way to pay off debt is to make sure the most dangerous debts are paid off quickly before they accumulate.

2. Use payday loans to pay off your debts.

Are payday loans a suitable arrangement to help you get out of debt? It depends on your debts, interest, and dates. It may turn out that payday loans could assist you in financial emergencies, helping you erase a huge portion of your red ink.

Using payday loans is one of the fastest ways to pay off debt, but it does require a little bit of planning. Here is what you can do:

  • Examine all your debts and calculate what you owe.
  • Find out what requires priority.
  • Inquire with payday loan companies and determine the best rates.
  • Borrow only what you need and pay off your debts.
  • Ask the payday lender about an extended or refinanced payment plan.

By the end of it, you can pay off your consumer debt and your payday loan.

3. Ask for a lower interest rate for loans.

Let’s be honest: Lenders will work with their borrowers to get their money back. They realise that they are taking a risk lending to consumers, so they will offer various mechanisms to ensure they can receive at least most of the loan back. Of course, they will only do this if the borrower is open, honest, and cooperative – if you are ignoring the company, then it cannot do much for you.

Moving forward, it would be a good idea to get in touch with the lender and inform the firm of your decision. One thing you can do is to ask for a lower interest rate. This way, you do not need to add to your overall debt with greater interest costs.

4. Reduce your spending until you pay off the debt.

The fastest way to pay off debt is to reduce your spending in other areas immediately. Cutting back on your morning lattes, changing your monthly smartphone plan, or taking public transit instead of an automobile – there are many things you can do with your daily, weekly, and monthly expenditures that can help you allocate more of your income to your debt.

5. Stop accumulating debt in your credit cards.

Sure, credit cards are convenient, and they give you the feeling that you have an unlimited amount of money at your disposal. Unfortunately, the reality is a lot grimmer than that. That piece of plastic is a weapon, and every time you are tapping, swiping, or inserting, you will endure a self-inflicted wound.c

If you are drowning in debt, it is important to put that dangerous tool somewhere you can’t find it. Avoid using your credit card and pay in cash instead.

6. Use any extra money to pay off debt.

A bonus at work, a handsome windfall, or supplemental income – anytime you receive extra money, you should use it to pay off your debt. Remember, every little bit helps in the end.

7. Use a debt consolidation service.

Debt consolidation has been the go-to solution for millions of consumers. It works by meeting with a credit counseling agency and essentially putting all your debts into one giant pile. Every month, you make a single payment toward that debt and then you are relieved of your liabilities.

Easy, right? Well, the hard part is admitting you have a problem. The next difficulty is keeping up.

8. Create a budget to manage your debt.

To ensure you never get into this pecuniary pickle again, it is critical to establish a monthly budget and stick to it. You do not want to spend more than you make, get into debt again, and repeat the process.

All you need to do is determine how much you make, calculate what your expenses are (hopefully you can cut back), and give yourself a daily or weekly pocket change. After just two months, you will see a huge difference in your wallet and bank account.

9. Pay everything in cash.

Who wants to carry around $100? Who wants to pay with loonies and toonies? Well, paying with cash can keep you out of trouble. You have money in your wallet, you pay what you owe, and you do not go overboard.

For example, if you are at the supermarket, and you have $200, but your final tally is $208. With a credit card, it is easy to get that extra $8. With cash, you only have the $200. Eight dollars may not seem like much, but it all adds up in the end.