10 best ways to get out of debt quickly
Most of us are in search of ways to deal with the problem of debt, and sometimes we do not get ideas to reduce our loan burden. Based on my study and experience, I have prepared a list of 10 ways to reduce debt.
1. Plan your expenses
The most important method to get rid of your debt is to plan your monthly expenses beforehand and spend money accordingly. Most importantly you should communicate the monthly budget to family members.
Execution of the plan is also important. As far as possible, you should be able to stick to the budget.
2. Reduce expenditure
Identify various categories of expenses that need modification. For example, you can disconnect cable subscription. Instead, you can depend on unlimited Internet connection provided by a reliable internet service provider (Comcast, at&t etc) to watch movies and news online. Most content can be access free within few hours or a day after airing on the TV online from original company’s (abc, cnn, fox etc) website.
Internet can be used to download content from the web to watch later time. You can cut your home phone and use programs such as Skype to talk to others for free. Most of the communication can be done by using websites such as Facebook and Twitter. You can also use the office facilities or free public internet from bookstore, restaurant, hotel to browse Internet and obtain information if you want to even cut the internet service in your home.
You can use cheap entertainment option like Netflix to watch movies and shows unlimited online for only few bucks a month.
3. Open a new bank account:
You can open a new account, which can be used to save money every month. Deposit particular amount of money every month in the account, and after six months or so pay a part of the loan.
Negotiate with the creditor to reduce your monthly payments. The saved money can be used to repay loan at a later period.
4. Get a part time job
Apart from your regular job, you and your family members can try for a part time job, which makes hourly payment. Select a job, which is flexible enough for you to adjust timings. The additional income should go to the saving account mentioned earlier. After creating a fund from the additional income, use it to repay part of the loan.
5. Sell products
You can earn money by selling products in websites such as ebay.com and others. Sell unwanted items such as additional computer or TV set. If you have old motorbike or a car, you can sell it in ebay, and the amount can be used to reduce debt burden.
6. Save on grocery
Identify a grocery shop, which gives reasonable concession so that you can save on monthly basis. You can also find coupon online or from newspaper to buy grocery for almost nothing. You can save hundreds each month on your grocery if you learn how to use coupon.
7. Save on educational expenditure
Today education has become prohibitively expensive. You can save on educational expenses by encouraging your children and family members to apply for a fellowship or government schemes. You can get a state or federal grant for your education. If you or your kids are good student, you can apply for scholarship from private company. Sometimes even your neighborhood church gives scholarship.
8. Consult a financial expert
If possible, you need to consult an expert in financial management. It is true that he or she will charge you, but it may help you in saving money over a period of one year.
9. Avoid luxuries
During this period of crisis, you cannot afford to spend on luxuries such as expensive cars and mobile phones, new smart phone etc. For example, Apple phone is expensive when compared with Nokia. Go for a cheaper phone, and when your financial situation improves you can buy costly goods.
10. Withdraw money from insurance and mutual fund investments
You might have invested in insurance schemes and mutual funds. They allow a partial withdrawal of your investment. Use this money to repay a partial debt.
REMEMBER:You are in control. You have to spend less money than what you make every month to get out of debt. Make a plan and stick to it.