The days of getting paid and being broke on the same day must stop. Instead of giving your hard-earned money to creditors, start paying yourself.
Here at VirgoPhilosoply.com, we’ve researched and come up with five ways to pay off debt.
Cut Unnecessary Spending
Although it can be tedious to cut spending habits like going out to eat and entertaining, excessive spending can drain your income. Minimize unnecessary expenses. It can save you hundreds each month, and the extra money can go to paying down debts.
Pay Off Student Loans
Student loans can be a ball and chain for most folks. Depending on your student loan, consider paying more than the minimum each month. Like a credit card or other loan payments, it is best to pay extra to get rid of loan payments quicker.
Special note: If you are a public worker (local, state, or federal) or work at a non-profit, your loans may be forgiven after ten years of service in the United States. Please check with the Department of Education to see if you qualify (link above) for student loan forgiveness.
Negotiate Interest Rates
Many credit card companies will lower your interest rate if you call and ask. Unfortunately, most debtors do not realize they have this option. A reduction in an interest rate could save hundreds or even thousands of dollars.
Settle Medical Debt
When medical bills are owed, a person can often negotiate the finance amount they owe by offering to pay a portion in cash. Often, medical facilities will lower the remaining debt amount, so there isn’t a large balance to pay.
Get Professional Help
Debt management can be a little overwhelming. Many people find it helpful to create a debt management plan through the help of a financial advisor. These professionals can help a person plan their payments based on their income so they can pay their debts off in the fastest time possible.
Using these methods can help you tackle debt. Getting out of debt will allow you the freedom to live the life you always desired.
Video credit: The Dave Ramsey Show | YouTube