Debt Info Site

If you have a mountain of debt from a credit card, car loan, mortgage, or student loans, it can seem overwhelming to try to pay it all off. Although it is easier to rack up debt, there are ways to pay it off faster than the 18 years required with the minimum payment. Here are some ways to help you pay off your debt.

-Snowball your payments. Pay more than the minimum on your smallest credit card payment until it’s paid off. Then add that payment amount to your next lowest credit card bill. Continue this process until all your bills are paid off. (You could also pay on your highest interest card, but choosing the smallest debt can give you a sense of accomplishment quicker, which equals more motivation to be debt-free).

-Borrow from your 401K or savings account.  Many 401k plans will let you borrow up to half of your balance. If you are in deep in debt, using part of your savings account is wise because you will usually end up paying more than the account is earning with the high interest rates on your cards and loans.

-Take out a personal loan on your home or car.  Personal loans have a lower interest rate than credit cards. So you can pay off your credit card debt and pay back the loan at a lower interest rate, saving you money.

-Earn extra income. You can take a second job to earn some more money. Or you can do odd jobs like pet sit, baby sit, or clean houses. Use your talents to teach, consult, or buy into a franchise. An effective way to earn extra money is to sell items on eBay using a dropshipper or write an informative blog. Be creative with your talents and you could bring in more money than you think.

-Create a budget and be frugal.  When you are spending all your extra money to pay off debts, your must adhere to a budget to ensure that you are living within your means. Budget for food and gas strictly, down to the last penny. Try to cut costs by using coupons and looking for sales. You can save on many household products like toothpaste just by sending in rebate coupons, which can save you valuable dollars every month.