The Easiest Way to Pay Off Debt Fast
Americans are swimming in debt and the water just keeps getting deeper.
Consider this: The total amount of consumer debt in the United States rises over 6% a year. In January, it hit $4.4 trillion.
All told, the average American owes about 10% of their income to debt such as credit card debt, student loans, and mortgages.
It’s tough to picture your head above water, but there are a few ways to pay off debt fast.
How To Pay Off Debt Fast Today
Here’s a look at some of the best approaches to getting back on your best financial footing — including one way considered by many to be the easiest way to pay off debt.
Depending on your total debt, consolidating it into one lump figure may be a great way to pay off debt fast. If you have a ton of different debt balances that are high-interest, consolidation comes with a lower rate, letting you pay it down faster.
There are different options if you go with the debt consolidation route. Some use their home’s equity as a way to pay down debt. Credit through this equity line will often come with a lower rate compared with your credit cards.
Another option is transferring your balance off of cards with high interest rates. Balance transfer rates tend to be low and their balance transfers come with fees, sometimes as high as 5%.
Incorporate Paying Down Debt Into Your Budget
Budgets aren’t just about tracking your expenses and your spending. To pay off debt, consider the 50/30/20 approach.
This means 50% of your money each month goes toward needs, such as rent or food, 30% for wants such as travel and entertainment, and 20% goes toward financial goals, including paying down debt or accumulating savings. Then all you need to do is stick to that plan.
Increase Your Income
While adding income streams can sometimes be easier said than done, using it as a way to pay off debt fast is becoming increasingly manageable. There are a great number of side hustles to choose from and many fit in with any schedule.
These range from food delivery and selling products through an online marketplace to renting out a parking spot or your home to tourists. While your primary income can go toward your needs and wants, many use side hustles as a way to contribute money solely to savings or paying down debt.
Throw Your Credit Cards Out
Or at least stop using them for a while until the majority of your debt is paid off.
Since a large amount of consumer debt comes from credit cards, committing to using just cash or reducing the number of cards you use each month can be a great way to pay off debt.
Plus, reducing the use of credit cards also improves credit utilization, or how your available credit compares to your debt balance. Credit scores greatly increase when you lower the utilization ratio.
Find A Method That’s Best For You — And Stick To it
Financial advisers generally agree that there are two payoff methods that are seen as the easiest ways to pay off debt.
The snowball method works by paying the smallest debt amounts first while paying the minimum on other debts. Then you move up to the more expensive debt totals. For many, these small debt wipe-outs are great motivators to continue paying off debt.
Others swear by the avalanche method. Here you will begin with the debt amount that is tied to the highest interest rate first and then pay the next largest amount off and so on. With this method, you’ll pay off the most money first and feel freer to move on to other totals.
Try Payday Loans
Those with jobs — high-paying or not — also struggle with large amounts of debt. That makes it hard to cover a financial emergency such as a hospital visit, home or car repair, or last-minute pricy travel.
Payday loans are an option to cover such expenses in between paychecks. At Cash Cow of Louisiana, it can take as little as just 30 minutes to qualify for loans of up to $300.
You just need a driver’s license or state-issued identification, your most recent pay stub, and a blank check from an account that is both active and in your name.
Plus, you can start the process online. Head to our homepage and fill out the short online inquiry form. We’ll give you a call, answer any questions you have, and walk you through the rest of the quick process. Once you are approved, the cash is yours as early as the same day.
Get Started Today
There are plenty of ways to accomplish paying off debt. If you’re looking for the easiest ways to pay off debt fast but have to deal with a financial emergency at the same time, payday loans offer an option for relief. Just start online, give us a call, or visit a Cash Cow of Louisiana location near you today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.