Simple Tips to Help Pay Down Debt Faster

Written by: Jennifer Watkins
07/16/2019

debt-free

The strategy behind obtaining a loan has changed for a large number of people. It has changed because instead of going to a traditional bank, they decided to apply with Equities First Holdings. Many people are able to be approved through this company because it is not based on credit. If someone has stocks, it is a great chance they will be approved for some form of stock-based loans. Even people who When someone is in debt, it can feel like a ton of pressure on them all at once. The Federal Reserve in 2019 calculated that consumer debt was higher than four trillion in the United States, and that is without mortgages being calculated into the number.

A person’s debt can seem like it will never go down; however, there are some smart tips that can be used to get the debt down faster than they ever thought possible.

One way that people can pay the debt down faster is by utilizing certain apps. Apps like Cents help people to pay off their debt by using extra change towards credit cards. Cents will make monthly payments on the cardholder’s behalf by using what they call roundups for purchases they make. So if someone was to make a ten dollars and fifty cent purchase, the app will round it up to eleven dollars and place the extra fifty cents towards the credit card payment.

ChangeEd and Tally are similar apps that can be used if someone is interested in doing this method. This is a good idea because people do not really have to think about it. It is something that is done on their behalf on a monthly basis.

Another great way to pay off debt faster is by paying on an account twice a month. For instance, if the payment is eight hundred dollars, then the person would pay four hundred every two weeks. This would mean that a person would have made thirteen payments a year. So, that is one extra payment than they would have made. Some people even make payments every week. Doing this means that you will end up paying less interest on the account because the amount due would be continuously going down. This can definitely help to save money.

Another tip is to create direct debits to a savings account. The savings account will be created to help to pay off a loan. In a matter of months, people will get accustomed to not even missing the extra cash that is going into the savings account. They will also have some more money to take care of the debt they are working to pay down.

When someone gets a raise, they think of things they can do with the money but the main thing they should be thinking about if they have debt is paying it down. So, when someone gets a raise, they should allocate some of that money to pay down their debt. They do not have to use the entire amount of the raise for paying the debt down. Some can go to savings and the other part can go for paying down the debt.
If an interest rate on something is out of control, it may be a good idea to transfer the debt to another card that has a lower interest rate. Then put more money towards the debt. If someone gets another line of credit, the interest rate could be significantly lower. They can also move into another credit card that has a zero-percent interest rate. Sometimes certain card companies offer this option for balance transfers.
Creating a budget is a great way to understand exactly where the money is going. Sometimes people spend more money on their daily routines that they may believe. A good way to combat that is by getting gift cards. This way they can see how much they are spending, without necessarily giving up some of the things they love. It may be good to place a certain amount on a gift card and then only use what is on the gift card. This is a fantastic way to budget. When someone is doing this, they have to be sure they leave their other cards at home. Otherwise, they will be tempted to still use the card.

Paying more than the minimum on any debt is always a good idea. It will take longer to pay off the debt if just the minimum is being paid. The amount of interest paid on the amount will be higher the longer it takes someone to pay off the amount.

The debt snowball method is something that many people use to clear out their debt faster. It involves paying off the smallest balance that is being carried in debt first. Then once that is paid, they should use the money that was being used for that debt and apply it as an extra amount to the next smallest amount that is being used. Then continue the small ball process. Many people have a large amount of success using this method.

Sometimes getting some extra money in will help to eliminate some debt. So getting a second job or something that is on an as-needed basis will help people to get the money they need. Websites like Task Rabbit and Upwork are great places for people to look if they would like to make some extra income. It can be a really good way to make some extra money and pay off debt. Getting money for babysitting, mowing yards, cutting grass, and more can definitely add up over time. It is not something that must be done forever. Every bit counts towards a debt.

Selling some items that are not needed can generate some income. Some people try to hold on to everything, and this can be costing them money. Being able to sell some items is a good way to create some income and apply the funds towards debt. So people should definitely take a look around in their environment and locate some things they truly do not need.

Debt can hinder many people, but the good thing is it does not have to stay around. By completing all or some of these steps will allow people to pay off the debt faster. Being debt-free will not happen overnight but it is something that can happen with consistency. The key is to not give up during the process.


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Simple Tips to Help Pay Down Debt Faster

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