Debt is can be a blessing or a burden depending on your situation. For some, debt is just a mechanism for making large purchases such as a house or vehicle. It takes some time to pay it down, but it’s necessary to accomplish certain goals or desires. Others need to use debt in order to make ends meet, month after month. Those belonging to this second group can find themselves in a great deal of money trouble. Here are some innovative solutions to escaping debt.
Sell Anything Unnecessary
You probably don’t want to part with your prized possessions. But a lot of the time, the things you think are inseparable from your life aren’t actually most important. A lot of people put too much value on items that aren’t inherent to their wellbeing. Whether it’s driving a luxury car, wearing certain clothes or jewellery items, or any sort of material goods, these things don’t define your life.
If you’ve found yourself in debt, you should try to sell any unnecessary items that will bring in a good amount of money to pay down your loans. You can also just downgrade to a comparable, but less expensive, version of various items. If you end up having to face Chapter Seven bankruptcy, creditors will liquidate all your non-exempt assets regardless. It’s better to sell things before this happens. Otherwise, you might end up having to part ways with irreplaceable items such as family heirlooms.
Buy Things at Thrift Stores
People who want to reduce or eliminate their debt should consider buying things used as opposed to new. You pay a massive premium when you purchase goods that haven’t been used by someone else before. For instance, a new car loses about 10 per cent of its value within the first month of ownership. Many people consider this to be the depreciation you face immediately after driving the vehicle off the lot. Simply put: You’re going to save a lot of money if you shop for things at bargain prices as opposed to paying top dollar.
Don’t Go Out to Eat
Dining out can be a massive expense for people. Often, diners don’t realize exactly how much money they’re spending cumulatively on all their eating out. The average U.S. household spends over $3,000 each year dining out. That’s money that can go into paying down your debt if you instead use it to buy groceries and cook at home.
Use Debt Negotiation
Some people with significant amounts of debt should consider looking to outside sources for help. Debt negotiation is a strategy that can work for people who otherwise might not be able to pay down their debts without having to face bankruptcy. Freedom Debt Relief is one of the most respected companies in the world of debt negotiation. Countless people have worked with them in order to get their finances back under control. Some individuals are even able to completely eliminate their debt in as little as 24-48 months. People who have debt issues and enrol in the company’s program can possibly qualify for the Consolidation Plus program. This is a concentrated debt relief outlet for those who need immediate, intense aid.
Get Rid of Cable
People spend a lot of money on their paid TV services. Regardless of how they do it, consumers average $103 per month on these services. That adds up to well over $1,200 per year. Keep in mind, this is the average; so many people are actually spending much more than this. Cutting back your television expenses is one of the best ways to find extra money to pay down your debts. Just make sure you actually understand how changing services will affect your overall payments.
Look for Additional Income Sources
If you’re still not able to pay down your debt after employing these other solutions, you need to find ways to make more income on a steady basis. This will likely involve taking on a part-time job or finding a freelance position. Finding the right “side gig” can add hundreds or more to your income each month.
Nobody wants to be in a tough situation with their debt. Unfortunately, this is an unavoidable part of life for many people—especially those who have to pay unexpected expenses. Following strict practices can help you get to a better place with your debt.