Debt can be a scary, overwhelming thing. The thought of owing money to someone else, on top of all the other pressures of life, can be paralysing. But it doesn’t have to be. There are creative solutions to pay off debt, and these proven techniques can actually help you get rid of your debt for good. With a combination of budgeting and smart spending, you can create a plan to get out of debt and stay out. You can learn how to manage your finances and make sure you never fall into the debt trap again. With the right strategies, you can be debt free and start enjoying your life again.
What are the Benefits of Being Debt-Free?
Being debt-free is an incredible feeling. Being free from constant stress and worry allows you to truly focus on life, your relationships, and your goals. You can make bigger purchases without worrying about how you’ll pay for them. You can focus on your work and saving for retirement. You can travel more and start investing in your future. Once you pay off your debt, the benefits are endless. You’ll be able to sleep easier at night knowing that your debts are paid off. And you’ll be able to breathe a little freer knowing that your finances are in order. Finally, you’ll be able to put your money to better use — and put it to work for you.
1. Track Your Finances With an App
If you’re serious about getting out of debt, you have to be serious about your finances. You have to know where all your money is going — and where it should be going. And you have to stay on top of everything. Getting out of debt will take a lot of careful budgeting and spending. You have to make sure that every dollar is accounted for and where it’s going. You’ll likely need to cut back on your spending to be able to pay off your debt faster. And to do that, you need to be organised. You need to know where your money is going so you can make adjustments as necessary.
2. Look for Unclaimed Funds
If you’re getting out of debt, you’ll likely be looking for additional income to help you along the way. And you may be able to find some unclaimed money in your name — without doing anything. Some companies may have unclaimed money in your name that you don’t know about. These are essentially funds that are owed to you but that you don’t know about. You can look for unclaimed funds by contacting your state government. You can also search online for unclaimed funds in your name.
3. Sell Your Extra Stuff
Cutting back on your spending can be helpful when getting out of debt, but it can also be a little tough. You may have to make some tough decisions about who you’re spending time with, what you’re doing, and what you’re buying. It can be helpful to have an extra source of income to help you along the way. You can sell your extra stuff — anything that you don’t use or need — to generate some extra cash to put towards your debt. You can sell your old clothes, electronics, furniture, toys, books, and more. Just make sure to research how much certain items are worth so you aren’t taken advantage of.
4. Use Cashback From Your Credit Card
Credit cards can be incredibly helpful for building your credit and for making sure you always have a source of cash on hand. But using a credit card can be incredibly dangerous for your finances. You need to be incredibly careful and responsible when using credit cards. One way to make sure you’re being responsible is to use financial incentives from your credit card to your advantage. Many credit cards offer cashback or rewards programs. Make sure you are taking advantage of these rewards. Using your cashback to pay off your debt can be a great way to get ahead on your finances and make sure you don’t fall behind.
5. Participate in Online Surveys
Getting out of debt is a challenging task. You have to really examine your spending and make sure you aren’t spending too much. You also have to make sure you’re getting the most out of your money. Online surveys can be a great way to make a couple bucks here and there to help you along the way. Some companies will pay you to take surveys and offer your opinion on different products, services, and more. You can make anywhere from $1 to $50 per survey, and many surveys only take a few minutes to complete.
6. Look Into Side Hustles
Side hustles can be a great way to earn extra money and help you along the way towards getting out of debt. They can also be a great way to boost your resume and improve your skills. Side hustles can be anything from freelance writing to working with an app-based service. And they can be easy to find. Many companies have websites with job boards where you can search for local opportunities. You can also check out online job boards and sites like Indeed, Upwork, and Freelance. From blog writing to social media management, there are plenty of ways to make a few bucks on the side.
7. Ask for a Lower Interest Rate
Getting out of debt isn’t a one-and-done thing. You’ll likely have to make adjustments along the way as you make more progress. One way to make a big difference on your progress is to ask for a lower interest rate. You can do this by checking your credit report and making sure all your debts are up-to-date. Make sure that your payment history is good, and you should be able to get a lower interest rate on your debt. This will save you money in the long run and speed up your debt repayment.
8. Try Secondhand Shopping
Cutting back on your spending is a big part of getting out of debt. You need to make sure that you are being as frugal as possible and not spending too much. One way you can do this is by shopping secondhand. You can find great items at great prices at secondhand shops, and you don’t have to spend as much as you might on new items. You can find clothes, furniture, and other household items at great prices. You can also check out websites like Craigslist to find items for even cheaper.
9. Rent Out Your Car, Camper, or a Room in Your House
If you have an extra vehicle or a camper, you can make money off of it by renting it out. You can rent out your car to people who need rides to and from the airport or who need to go on road trips. You can also rent out your camper for people who want to go camping but don’t want to do it alone. And you can rent out a room in your house to people who are in town for work and don’t have a lot of extra cash. All of these are great ways to earn a little extra cash to help you out along the way towards getting out of debt.
10. Try the Snowball Method
The snowball method is simple, yet highly effective when it comes to paying off debt. This method involves paying off your smallest debt, and so on. This way, you don't get overwhelmed by the amount of debt you have to repay. You can tackle each debt one at a time, and as you pay them off, you will be able to put that money towards the next debt you need to repay. This will help you stay motivated to get out of debt and see results as you repay your loans.
Get an Instant Pay Advance With Wagetap and Take Control of Your Finances
Wagetap is a pay on demand app designed to help Australians achieve financial independence. They can help access pay early, up to $500 and split your bills up to $600. Downloading Wagetap is one the creative ways you can pay off your debt and an additional resource for when unexpected expenses come up. Getting out of debt is no easy task, but it is doable. It takes commitment, hard work, and dedication. It takes sacrifice, but it’s worth it in the end. You will feel a sense of relief and freedom when you get out of debt. You can focus on your work and your relationships instead of stressing about your finances. You can live a much more fulfilling life when you aren’t weighed down by debt. You can start saving for retirement and paying for your future. You can live your best life when you are debt-free.
For additional help in improving your spending habits, you can always download Wagetap. It is a leading wage advance and bill split app that allows you to access your pay early. Emergencies can always happen and Wagetap can help you handle life's unexpected expenses.