When it comes to debt and paying it off, people go for the standard route of slowly making payments. What is the problem with this situation? Whenever you are paying off debt, you are also paying off the interest that comes along with it. If your debt is too large, you might only be paying off the interest and not the actual debt itself. This puts you in a position where you are stuck in a hole with no way to get out.
Fortunately, there are some lesser-known ways that can get you out of debt and restore some normalcy to your life. You will have to make some sacrifices and some changes, but getting yourself on the path towards financial freedom is important. Here are several less-known ways to get out of debt.
HAVE THE GOVERNMENT WRITE DEBT OFF
The government understands that people might be in situations where it is impossible for them to pay off their debt. This is augmented by a large amount of unemployment caused by COVID in the past year. Not many people know that there are legal ways in which the government can write off up to 80% of your current debt. You can learn more here and see if you are eligible for this support. There is no harm in taking a look and at the end of the day and this can act as a light at the end of the tunnel for you and your debt.
Based on your situation, a company will evaluate your position and determine how much debt can be written off. There is much more that can be done as well than just reducing the amount of debt you are paying. The monthly payments can also be reduced, therefore giving you slightly more financial freedom. If you are in debt and don’t know how to solve it, see if you can have some of it simply written off.
EVALUATE YOUR EXPENSES
At the end of the month, you are responsible for paying living expenses. There is no way around this, as things such as your car insurance, and rent must be paid. Have you taken the time to evaluate these expenses however and see if there are any ways that you can save money? Take your car insurance for example. Have you taken the time to compare rates between different companies? Do you actually need the amount of coverage that you are paying for? By asking yourself these questions, you can help to reduce the amount of money that you have to spend each month.
Another big expense to look at is your phone bill. While having a phone is essential in this day and age, are there any aspects of your plan that you are not using? You might have to make sacrifices here and there as well, but finding a way to reduce your living expenses will go a long way towards getting you out of debt and doing so quickly.
When it is finally time for you to spend money, are you doing so in the best way possible? At any point, there are likely going to be deals on products you are wanting to buy. Take a look at coupons online and in books, and don’t be afraid to take advantage of them. This can help you save money, and it can be put towards your debt.
SELL YOUR CAR
Selling your car is something you should consider depending on your circumstances. If you are close to your work or in the downtown area, it should be very easy to get to your work by either walking, taking public transit, or using a rideshare app. Even if you have paid off your car in full, insurance payments can be extremely hefty. If you are financing your car, not only are you having to make those payments, but you are also having to pay installments with interest as well. Think about what you could do if instead of paying off your car you paid off your debt. This solution might not work for those living outside of a city who have a long commute to work, but those who are able to sell their car should definitely consider doing so. It might add a little inconvenience here and there, but overall, it will help you to get your life back on track.
These are four lesser-known ways in which you can quickly get out of debt. It might be difficult to commit yourself to sell a car, but it definitely is easy to apply to have your debt reduced online. Evaluate your life and make changes as necessary. How do you plan on getting yourself out of debt?