One of the biggest concerns facing Americans today is financial debt. According to LendingTree, a website that provides loan comparisons, the total amount of consumer debt in the United States could reach $4 trillion by the end of 2018. That would be a new record.
In fact, Americans owe greater than 26 of their annual income to debt, per LendingTree—a worrisome rise from 22 percent in 2010. Indeed, credit card debt is escalating, as are debts on auto loans. Luckily, Liberty Debt Relief can help you build a strategy to get out of debt faster.
Designing a Sound Strategy
If you are one of the many Americans wondering how to get out of debt faster, there are some important steps you can begin today that will help.
1. Crunch the Numbers
The first step in your debt relief plan should be to figure out exactly what you are up against. Start by opening up Microsoft Excel or Google Drive and create a spreadsheet. Then, you can write down what you owe, who you owe that money to, and include the various interest rates. Doing so will allow you to wrap your head around what needs to be done.
2. Set Clear, Achievable Goals
People looking to get in shape see better results when they craft workout and nutrition plans. Musicians are more likely to improve when they stick to stringent practice routines. Likewise, those attempting to get out of debt will enjoy more success when they incorporate explicit goals into their debt relief plan.
Laying out your financial objectives can make the journey seem less daunting. For example, say you owe $6,000. That is a significant amount of money, but it is more manageable when you decide to pay back $250 each month for two years.
Additionally, reaching intermittent goals, even if they are small, can feel incredibly gratifying. And when you feel that kind of pride, you will be more likely to stay on course in the future.
3. Evaluate Your Spending Habits
Do you spend a lot of money on goods or experiences that are not necessities? If so, you need to alter your spending habits. Make coffee at home instead of going to a cafe each morning. Cook at home more often. Skip the movie theater and watch a film on Netflix. Don’t add to your wardrobe when you don’t have to buy new clothes.
Each of these steps may feel small individually. Together, however, they can have a large, positive impact on your debt relief plan.
4. Find Extra Work on the Side
You may have heard the term “gig economy” in recent years. In essence, it an environment where people can take on extra work on the side as a way to supplement their earnings. Freelance, part-time, and temporary opportunities are not new, but in the last decade, technology has led to far more of them than ever before.
Here are some ways you can improve your debt relief plan with extra income:
Drive for a ride-sharing service
Deliver for an on-demand food service
Rent out a home or room through online lodging services
Let’s say you dedicate $300 per month to pay off Debt #1 and $200 per month to pay off Debt #2. After a year, you finish paying off the first debt but have a ways to go with the second. You could hold onto that extra $300 each month—or, you could allocate it to Debt #2. Making this adjustment to your debt relief plan would help you reach your financial goals at a quicker pace.
6. Sell Things You Don’t Need
A lot of people have valuable goods sitting around the house that they no longer use. Instruments, jewelry, electronics, art, sports memorabilia, furniture, children’s toys, books, clothing, fashion accessories—as long as they are in good condition, all of these items can bring you valuable cash.
Holding a garage sale is an effective way to get rid of household goods and inexpensive objects. If you are trying to sell expensive things, however, you would be better off going to a pawn shop or listing the items online.
Before you start selling, make sure you do enough research to understand how much everything is worth.
7. Reward Yourself When You Deserve It
A great way to lose weight is to reward yourself once a week with a “cheat day” or a “cheat meal.” This tactic helps those trying to get in shape take a mental break from strict regimens and gives them something to look forward to when they are struggling.
Climbing out of debt can be an emotionally taxing process, as well. To stay on course, it is important to treat yourself once in a while. If you slash your budget and stay committed to paying your bills, you should pat yourself on the back when you deserve it.
Get a nice bottle of wine. Go to a concert. Enjoy a spa day. As long as you don’t go overboard, these indulgences can keep you on track through difficult times. 8. Allow Us to Help You Reach a Debt Settlement
At Liberty Debt Relief, we want to develop a unique debt relief plan that makes sense for you. Our debt relief services can help you reach a beneficial settlement with creditors, one that will lower your payments. To speak with one of our representatives and learn more about how to get out of debt faster, click here.
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