Debt, especially credit card debt, has become a way of life for most people. High prices and low wages mean that it’s hard to clear debt from your life when everything has to be purchased on credit. But it is possible to live within your means—it’s just not always easy. If you’ve ever wondered, “How can I clear my debt and start over?” then the following tips may help.
Make More Money
This is often the best option for people but one they rarely consider because it seems so difficult. No matter what kind of job you hold right now, you can find ways to make a little more money that could be used to help clear debt away. A part-time job, even just 10 hours a week at minimum wage, can help you pay off a card faster and save on interest. It might not sound fun, but a job at a place like McDonald’s could be just what you are looking for. But it means more work, and possibly less sleep, less time with family and friends, and less time spent doing the things you enjoy. Is it worth that sacrifice, for at least a little while, to help get out of debt?
You can often make more money without getting another job. Sell unused items that are just taking up space. Cut back on eating out and cook at home instead. Save money by cutting your expenses and apply that toward your debt. Take your lunch to work and skip the junk food on your coffee break. Skip the $4 coffeehouse coffee and bring a cup from home. Cancel your satellite television for 6 months and apply that to your debt. Stop buying bottled water and get a water filter instead. These little debt busters can make a big difference in your balances over time. It might not seem pleasant to give up tiny luxuries to help clear debt, but consider that you won’t have to give them up forever. The faster you get out of debt, the faster you can enjoy those little luxuries again. Use that as incentive to pay down those balances.
Get Debt Help
If you’re looking for straightforward and clear debt solutions that are going to work fast and won’t necessarily require you to work more or spend less, then things like debt settlement and consolidation loans are other options. If you already have poor credit from paying late or not at all, a credit card consolidation loan might not be an option. If you can get such a loan, however, it’s a good way to turn your many payments into one payment a month. Your credit cards get paid off and you can still typically use them. But you should work very hard not to, so you don’t end up with large balances and a loan to pay off, as well.
Credit card debt relief in the form of a settlement is a last-resort option when you can’t get a loan or don’t want one, but need to get out from underneath the debt. Your cards will be closed, and your credit report will take a hit. But you’ll get to pay off your cards at once for a much smaller amount than you owe. You get instant relief from the payments and the ability to overcome your credit problems with time. But if you want to save your credit record, still be able to get loans and use your cards if necessary, then coming up with more money to pay on your cards is still the best option to help you clear debt.