With millions of people today living paycheck to paycheck it has become increasingly difficult to make any real progress in paying off their debt. For years, many people just used loans and credit cards to finance the lifestyle they desired but many of these people are now realizing that if they could pay off all their debt they could actually live much more comfortably. Living debt free has that advantage. While it is difficult to pay off debt quickly there are some tricks which can help it go much faster.
How Some People Pay off Their Debt
One of the first things people who are attempting to pay off their debt should do is either cut up or lock up their credit cards. Credit cards are the easiest way to rack up debt and if you keep them it will be very difficult to get out of debt permanently. Many people choose to cut up all their credit cards and close the accounts right away, others will keep them open but lock the card away only to be used in a true emergency. Whichever method you choose just make sure that you don’t go into debt for anything but an extreme emergency.
An Easy Way to Pay off Debt
By cutting off the credit cards you have effectively stopped going deeper into debt which is one of the most important steps you can take in quickly paying off debt. Once that’s completed it is time to start making large payments on your debt. While this can be difficult at first, it is important to work hard in the short term to eliminate this debt. One of the best ways to make fast progress is to get a second job from which you use all the money to pay off debt.
Even a part time job where you make a few hundred dollars per week can help you drastically cut into your debt faster than would otherwise be possible. By focusing the entire earning power of this second job you are able to make payments which are significantly higher than the minimum each month which will help you cut down that principal quickly.
Using this method you can pay off the debts in any order which makes since to you. The two most common choices are either paying off the items with the smallest balances first, or paying off the items with the higher interest rates first. Either of these options can help you become very focused when paying off your debt which will also help it happen much faster than would otherwise be possible. Learning how to be debt free starts with paying off your debt. If you motivated enough and recognize that it will take time, you should have no trouble accomplishing your goal.