When an individual sinks into debt, it’s not uncommon for a range of emotions to overtake them. There’s a shame surrounding the obvious lack of funds. Oftentimes, people attach their amount of debt to the level of self-worth they possess. While this is an unhealthy narrative to adopt, it’s understandable. Thankfully, there are many tips one can utilize in the journey to becoming debt-free. If you’re currently in a position where you’re looking to get yourself out of debt, consider the following tips.
1. Ask for a Lower Interest Rate
Call your creditors to inquire about a lower interest rate. This is especially helpful when your interest rate is very high. In most cases, predatory lending gives room for sky-high interest rates. Most companies will settle for a lower interest rate if this means that they’ll get an agreeable amount back. Even a 1% or 2% decrease in an interest rate can make a world of a difference in the amount you’ll need to repay.
2. Consider Bankruptcy
When many people think of bankruptcy, they think of it in a negative way. However, it can be a lifesaver for those who are drowning in debt. Educate yourself with the right tools by connecting with a bankruptcy lawyer in NJ or your local area. They’ll be able to fully review your case and determine if it’s the best option for you.
3. Develop a Repayment Plan
A wise person once stated that “failure to plan is planning to fail.” If you want to reach any specific destination, you need to develop a plan to get there. Whether you’re driving to another state or trying to lose 20 pounds, you need a plan. This same concept applies to your financial life. If you’re dealing with a certain amount of debt, sit down to curate a specific plan to climb out of debt. Consider factors like the realistic time frame, interest rates, and the current budget.
4. Negotiate a Lower Cost
Many debt collectors are willing to negotiate a deal that works for you to pay back the debt in a timely fashion. Depending on how much you owe and the reason behind the debt, you might be able to waive a certain amount. Negotiate and explore all options in regard to lowering the amount you owe.
5. Get an Additional Job
While it might not be the most ideal option, it can definitely be an effective option. Become a driver for a ride-sharing service. Babysit children as a part-time nanny. If you’re well-versed in technology, consider a part-time job in the tech industry. Take each paycheck from the second job, and use it solely for debt repayment.
6. Sell Unnecessary Items
If you have a wide-screen television that you can sell, downgrade your television experience in order to get some extra cash in your hand. Download different apps that allow you to resell everything from kitchenware to gently used clothes for a good amount of money. Look through your closets to uncover brand-new clothes with tags. If you’re not planning on wearing those items soon, sell them. Many people make a few hundred dollars each month through this process alone.
7. Lower Cost of Living Expenses
If you’re currently renting a two-bedroom apartment by yourself, consider getting a roommate or downsizing to a one-bedroom or studio apartment. Pay attention to how much takeout you order each month. Instead of ordering takeout, prepare your meals at home. As you create and stick to a budget, it’ll become easier to uncover money that can go toward your debt repayment plan.
8. Consume Motivational Messages
Depending on the amount of debt you have, it can seem overwhelming. When a person feels overwhelmed, the idea of quitting seems tempting. In order to keep going, it’s wise to regularly engage with content that motivates you to keep going. Listen to podcasts that feature people who worked their way out of consumer debt. Read motivational books in order to inspire your efforts to conquer this goal.
Debt doesn’t need to be a lifelong battle. Additionally, don’t wait until you’re out of debt to enjoy your life. Set aside a few dollars to enjoy a movie, a nice dinner, or a sweet weekend getaway. Those sweet experiences will help to fortify you as you move through the journey to becoming debt-free. Sure, it’s a tough experience. Thankfully, with these tips, living debt-free is within reach.