Need To Pay Off Credit Card Debt? 3 Practical Solutions for Paying Debt Off Faster
If you are tired of being stuck in credit card debt, here are 3 money solutions you can implement for paying off your stubborn debt faster.
Solution 1 – Increase Your Income
Whenever you owe more money than you can afford to pay, one of the best strategies to attack the debt is to increase your income. Naturally, if you can earn more money, you will have more money to apply toward repaying the amount you owe.
Ask for a raise
One of the first things you can do is to ask your employer for a raise. That may or may not be a successful endeavor, but, you should at least give it a try. Before you go into your boss’s office and make your request, you should get prepared. You will want to be able to present your best case when asking for a raise. Stress the things you do for the company and what you can do for them in the future. Do not make demands or give ultimatums. Most reasonable employers will be fair and give you a raise if they feel you deserve a raise. Just remember, the more you can convey your value to the company, the more likely you are to get a raise.
If you do not get a raise or the raise is not very large, your next option is to consider looking for a second job. AOL even shared that 1 in 5 adults got second jobs to get through holiday spending.While many people are thankful just to have one job in this economy, others do have second and even third jobs. There are always opportunities for part-time work if you are willing to accept certain types of work. Whether it is delivering pizza, working at fast food joints for $8 an hour or mowing lawns for $25 a pop, you can find a way to earn some extra income. Remember, you are not making a career out of delivering pizzas. It is only a temporary means of helping you dig your way out of debt.
Solution 2 – Sell Some Assets and Reduce Your Expenses
This may be a quicker solution to your debt problems. It may also be a more painful way to reduce your debt. You may have certain assets that you can liquidate in order to rid yourself of debt. There are many people who suffer the stress of burdensome debt because they refuse to touch their retirement savings or sell off some expensive jewelry.
While the decision to sell off your assets may be up to you, if you ever reach the point where you need to file bankruptcy, you will lose most of those assets anyway. No one is telling you to part with your great grandmother’s wedding ring or your grandfather’s railroad watch, but there are other things that are not so sentimental. It is better to sell the second car or have a general garage sale and sell a bunch of no-longer-needed items than to remain hopelessly in debt.
Cut back on your budget
The second part of the equation also requires some sacrifice. Take a good look at your monthly budget and see where you can cut back. Giving up such things as a daily $5.00 cup of coffee can add up to an extra $100 per month that you can apply toward your debt. Other suggestions such as cutting back on your cable television plan, eating out less often and only driving when absolutely necessary can add up quickly. Around the house, you can turn up the thermostat and save money on your electric bill. Wherever you save on expenses, you can then use those savings to pay down your debt.
Solution 3 – Credit Card Debt Consolidation Services
A third option that many people find works well to help them manage and reduce their financial obligations is to take out a debt consolidation loan as shared by Financial Post. There are many Debt Consolidation Companies that can help you obtain a loan to combine all of your unsecured debts into one larger, easier to manage loan.
The Debt Counselor at the Debt Management Company will go over all of your unsecured credit card and other debts and then arrange for a consolidation loan to pay off all that you owe. The Counselor will work with your creditors and try to negotiate the best possible terms for repayment. They will come up with a monthly payment plan that you can handle. By following the plan, you will be able to see your month-to-month progress in reducing your debt until it is eventually gone.
Adding more debt
The one word of caution that anyone taking out a debt consolidation loan must be aware of is that when you take out a debt consolidation loan, you are not discharging your responsibility to repay a debt. If you continue to use your credit cards and build up additional balances while also paying the consolidation loan, you will find yourself in even worse shape than when you started the process.
Paying these loans back on time should be a priority. If you stick to the agreement, you will get out of debt. There is also a way to consolidate your debts without a loan called settlement. You still get to choose your monthly payment and you get to get rid of debt collection agency calls. Plus you get to reduce your balances by up to half in as little as 24 months.
Get your free debt analysis to learn about all your debt consolidation options for paying off your credit card debt faster.