There are several different approaches to pay off debt, and to say one is the best isn’t really fair or accurate. You need to choose a method that works best for you. The difficult part is designing your plan and sticking to it. That’s why we want to showcase an easy method that seems to work well for most people. Have you heard of the Snowball Method to pay down debt? Click here to read all about it. This method is a great way to pay down your debt because: 1. The process is laid out – you just need to fill in the blanks. 2. It is designed to help you see progress quickly, which keeps you motivated to keep going!
Here are some other great ways to pay down debt:
- STOP spending money on your credit card. Some people will go as far as to freeze their cards in a container of water. This forces them to wait out their impulsive decision, which often changes by the time the water thaws.
- If you have credit card debt with interest, start looking for lower or 0% APR balance transfer deals.
- Put all money from work raises or bonuses towards paying down your debt.
- Sell unwanted or unused items in your home. From clothing to furniture, there is likely something you have that someone else wants. Alternatively, sell items you receive for birthdays or holidays that you know you won’t use.
- “Fast” one of your more expensive luxury items for a period of time (a week or a month) and use the money you would have spent to pay down debt. For example: $5 McDonald’s breakfast x 5 days per week = $25 a week or $100 for the month.
- Change your expensive habits and reroute the money to pay down debt. For example: Smoking a pack of cigarettes at $6 per day is $2,190 per year.
Paying off debt isn’t easy. If it was, most of America wouldn’t be in debt. However, it isn’t the act of paying off debt that is hard, it’s changing our habits and committing to those changes. Are you willing to commit? Tell us about your journey to become debt-free below in the comment section. What is working for you? What are your challenges?