If you are desperate to pay off your debt quickly, you are not the only person to think that way. Rather than searching for the best strategy for debt consolidation, you should check out the tips below.
- Apply for a debt consolidation loan
Applying for a consolidation loan can help you clear off your outstanding dues. It is one of the best debt consolidation strategies you can use to pay off your debts quickly. The idea behind consolidation loans is to pay off multiple high-interest EMIs with a single instalment. Paying off a single loan with low interest is more manageable than tackling multiple debts. Check out the top debt consolidation companies near you.
- Pay more than minimum
If you pay the exact amount on your credit cards, it will take you forever to clear your debt. That’s because the majority of your minimum payment will be spent on the interest fees. This is why you should make it a point to pay more than the minimum amount. By doing so, you can reduce your actual debt quickly.
- Spend less
We all have wants and wishes. But when you are in debt settlement, you should cut down on your expenses. What we mean is that you should spend less than you planned to spend. Use the saved money to clear off your dues, so you can be tension free. After your dues are clear, you can spend on the things you want to buy.
- Clear off your expensive debts first
If you have multiple debts, list them down to get an idea of which is the most expensive one. You should pay off your most expensive debt before smaller dues. Once that debt is cleared, you should target the next expensive debt, and so on. This way you will be left with the least expensive debt, which will be easier to pay off.
- Save more on groceries
We understand groceries are important, but to pay off your debt quickly, you should cut down on your grocery bills. Buy fewer items or buy items on sale. This will help you to save more money which can be then used to pay off your debts. These simple methods are useful when you want to consolidate your debt quickly.
- Make a debt payoff plan
By making a debt payoff plan, you will get a clear idea of all the debts you have and how you should pay them off. Not just that, but it will also keep you on track and give you a target to aim for. The best way to pay off debts is to spend all your extra money on a single debt while making minimum payments on the other balances.
- Opt for a 0% APR balance transfer
This option can be helpful to stop the accumulation of interest on your debt. By opting for a 0% APR balance transfer to a new credit card, you will get a longer introductory period. You can transfer your high-interest balance to the new card and then pay off the other debts.
- Sell off the things you don’t need
To pay off your debts quickly, you can consider selling off the items you don’t need. The money you will get can be used to clear off your debts.
- Get a second job
Paying off multiple debts with a single job can be difficult. You should consider getting a second job or part-time job and pay off your debts aggressively.
- Consult a credit counsellor
If you are struggling to pay off your debt, you should consult a credit counsellor. An expert can help you deal with your existing debts by letting you know the options you have.
Final Words
With these tips, you should be able to clear off your debts within a short time. When you have multiple debts at hand, you should collect all the money you can.
