Banking and Finance

3 Tips for How to Get Out of Debt

Here’s the bad news: rates of individual and collective debt are at an all-time high. With average personal debt rates of more than $90,000, Americans have never owed so much money.

The good news? You don’t have to owe any. Even if you owe a significant amount of debt, it is possible to pay it off.

Are you dreaming of the day when you can be debt-free? Keep reading. We’ll share our top three tips on how to get out of debt from people who have actually done it, so you can start your journey to financial freedom right now.

1. Use a Get Out of Debt Calculator

Here’s our top trick to stay motivated and find your best strategy to pay debt off: use a get out of debt calculator. This handy tool helps you figure out how quickly you can pay off your debt and how to do it faster.

All you have to do is plug in:

  • Your debt amount
  • Your interest rate
  • The payment amounts you are making

You’ll find out how long it will take to pay off your debt. Plus, you can play with the variables and see which ones can shrink your debt the fastest.

For instance, try lowering your interest rate. A debt calculator will show you how much money you’ll save by getting your interest rate down by just a few points. You may want to consolidate your debt to negotiate a lower rate once you see how much you’ll save.

2. Try a Time to Pay Arrangement

Generally geared towards businesses, time to pay (or TTP) arrangements give you additional time to catch up on payments. Especially if your business is going through a rough patch (such as struggling due to the pandemic), a TTP arrangement can help you stave off and get out of debt quickly.

Time to pay arrangements can seem confusing at first. Our friends at https://companydoctor.co.uk/ make them approachable, so check them out!

3. Track Your Spending

The easiest way to get out of debt fast actually isn’t about paying off your loans. Tracking your spending helps you pay debt back faster. That’s because spending mindfully helps you curb the purchasing habits that got you in debt and are keeping you there.

Don’t be intimidated by the b-word. Budgeting is as easy as grabbing a spending tracker app. Or, if you prefer hard copy, download a budgeting template and get to work.

And That’s How to Get Out of Debt

It might not be easy, but it’s absolutely possible. You don’t have to play financial catch-up anymore.

With these tips, you can get out of debt and stay that way. Congratulations — you’re already on the road to financial freedom!

Do you love smart tips to help you save money? We do too. That’s why you should click through our blog to get more content like this!

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