How to Pay Off Debt Quickly
Posted on: November 16, 2017
Debt is a concern for many people and an inevitable part of life. College students, homeowners and businesses all deal with it. In fact, the average amount of household debt in 2015 was almost $8,000. Left unchecked, debt can snowball into a much larger problem. Paying off debt quickly requires putting together a plan that allows you to stay in front it and continually pay the balance down.
Fortunately, there are a variety of strategies you can follow to pay off your debt in a faster manner. If you’re wondering how to pay off debt quickly, we have you covered. Here are a few guidelines that, when used together, are the best way to pay down debt.
Tips for Paying Off Debt Quickly
Transfer Balances: Find a card that has a zero-interest balance transfer. Transfer your debts that have the highest interest. It’s common to see people only capable of paying off the interest, so the actual debt is not decreasing. Doing this properly can potentially save you hundreds of dollars in interest.
Pay More Than the Minimum Balance: Paying off debt quickly can’t happen if you’re only sticking with the minimum balance. If you only pay the minimum balance required each month, there’s a good chance your debt will actually increase because of interest. Make it a goal to set aside a specific amount or percentage of your paycheck to pay off your debt each month.
Take Advantage of Credit Card Rewards: There are many credit cards that come with rewards that you can cash in. This is something that gets ignored far too often. If you can get 2 to 3% back on something you buy frequently, those savings can quickly add up. Research different credit cards and ways you can make the most out of your spending to help you pay off your debt.
Avoid Additional Credit Charges: One of the best ways to pay down debt is to stop it from increasing. Leave your credit cards at home unless they are absolutely necessary. Spend cash whenever you can to eliminate a downward debt spiral. Something as simple as creating a budget can limit your use of credit cards.
Delete Store-Saved Credit Card Information: Paying off debt quickly is all about prevention. Forcing yourself to manually enter credit card information on your favorite shopping sites gives you more time to think about the purchase. Limiting impulse buys to save money should be a top priority.
Lose the “It’s only $5” Attitude: Just like credit card rewards, every little bit of savings adds up. That daily trip to the coffee shop may only be a couple of bucks at a time, but it really adds up over the course of a year. Try to focus on the big picture rather than at the moment.
Plan to Use Your Bonus/Tax Return On Debt: It is easy to quickly spend any extra money that comes in – especially with all the enticing tax return sales and specials! If you receive a bonus or if tax season is just around the corner, make plans to put that money you get towards your debt rather than a shopping spree or weekend getaway.
CashMax Can Help You Pay Down Debt
Life is full of unexpected circumstances. If you find yourself in need to pay off debt quickly, consider applying for a CashMax loan. Tough financial situations are a part of life, but that doesn’t mean you have to go through it alone. With no mandatory credit checks, you can get the cash you need almost instantly! Visit one of our convenient locations near you to get started!