Whether you’ve been living above your means or you’ve simply run into hard times, if you have debt, you probably want to get out of it.
Not only do you want to get out of debt, but you want to get out of debt fast. Although stabilizing your financial situation can take time, there are several ways to start seeing results faster. Since no one wants to spend years struggling to make ends meet, check out the best ways to get out of debt in a hurry!
#1: Accept. Acknowledge. Move Forward.
Just like any other problem, debt is an issue that takes many steps to overcome. Accepting the fact that you have a financial predicament on your hands is more essential than you might realize.
It’s easy to turn a blind eye to the elephant in the room, but if you’re serious about getting out of debt fast, you’re going to have to get comfortable admitting you have a problem, and then figuring out how to move past it.
#2: Hustle (On the Side)
Paying off debt takes money, meaning you’re going to need to make more. If your main gig isn’t cutting it, consider starting a side hustle to help pick up the slack.
You might have a few less hours of free time than you’re used to, but getting out of debt requires sacrifice. Here are a few ways you can drive supplemental income that can be used to start paying off your debt:
- Pay for your car by driving for Uber or Lyft
- Mitigate shopping damage by selling stuff you don’t need
- Swap ordering in for making deliveries
- Replace online shopping with teaching online English lessons
#3: How Low Can You Go?
If you’re serious about paying off debt, you’re going to have to cut down on your expenses. If you’re serious about getting out of debt fast, you’re going to have to cut down A LOT.
As daunting as having to pack your lunch every day or resisting the temptation to push “order now” on your online shopping cart might be, living on a truly bare bones budget is key to getting out of debt sooner rather than later.
Prioritizing is crucial when it comes to starting your get-out-of-debt escape plan.
While your long-term goal should be to pay off all your debts, knowing which debts to tackle first is essential to making the most progress in the least amount of time. To get out of debt faster, focus on making a few key payments:
- High-interest credit cards – A simple way to reduce the amount of money you owe is to eliminate payments that accrue copious amounts of interest. This can mean paying off these debts outright, or implementing a strategy called debt consolidation, where high-interest debts are paid off with lower-interest means of credit.
- IRS payments – Getting a tax refund is wonderful. Having to send money to the IRS is not. Owing money to the IRS is a type of debt that merits immediate attention. For many, the idea of dealing with one of the most notoriously bureaucratic and complex federal agencies is intimidating, so don’t hesitate to reach out to an expert for help with the IRS if you need it.
- Time sensitive payments – Maybe you got a great deal on a new couch where you were privy to zero interest for the first year. This kind of payment structure can be fantastic, as long as you pay it off before the interest-free period expires. Keeping track of due dates and loan timelines can help grasp what needs to be paid, and when.
It’s Possible, We Promise
As soon as you put the first dollar down towards paying off your debt, you’ve started the process!
Every little bit counts, and the sooner you start taking baby steps, the sooner you’re going to start seeing massive results. Being in debt is not a permanent state, and you might surprise yourself with how quickly you can rally your finances.
It’ll take discipline, but putting in the work to get out of debt will—quite literally—pay off.