Paying Off Debts – The Easy Way
Being in debt can be a real burden. It can make you feel as if you do not have any options with regards to money and you may just want to be free of it. There are actually some simple ways to pay off debt and it is worth understanding what they are.
- Use Savings: Firstly if you have any savings take a look at how much interest you are getting on them and compare them to what you are paying on the debt. It is most likely that you are making less on your savings than you are paying on your debts. If this is the case then simply use the savings to pay off some or all of the debt.
- Earn More Money: Of course, not everyone has any savings or enough to pay off the whole of their debts and so another means needs to be used. It can be worth seeing whether you can earn more money so that you can use that to pay off the debt. The easiest way to do this is to ask for a pay rise or see whether it is possible for you to work more hours. You could even change jobs so that you are doing one that earns more money. Another way to make some money is to sell things that you have. You may be able to sell clothes that no longer fit or are no longer worn. You may have other items as well that you could sell such as games and toys, books, CD’s, DVD’s and other possessions. There are auction websites out there where you can make quite a bit of money from selling this sort of thing.
A more radical approach is to start your own business. You could do this in your spare time and keep your job, so that you guarantee your income but you will have to check with your employer first to make sure that it is okay.
- Spend Less Money: Another way to free up more money is to reduce the amount that you are spending. You will need to find out where your money is going in order to do this. Write down everything that you spend money on and see whether there are any places that you can cut down your spending. You may find that you can see some obvious ways to reduce spending on items that are not necessary, but there may be other ways that you can cut down as well. You may be able to reduce your utility bills by using a different company. If you have a mortgage you may be able to move to a cheaper lender. You may be able to buy food at a cheaper supermarket. You may be able to use the car less and save on fuel.
- Reduce Debt Costs: It is also worth seeing whether you can reduce the cost of your debts. Look at them all and see whether you can move a loan to a new lender or move a credit debt to a 0% card. There could be things you could do to reduce the cost. It is also wise to note how much each is costing you and make sure that you start to pay the most expensive one back first. This could save you a significant amount of money.
Keith writes on legal aspects of selling and buying annuities or settlements. His motivation, JG Wentworth company is the best company for structured payments.