How To Get Out Of Debt Fast

How To Get Out of Debt Fast – 5 Steps To Take

If you have ever had any debt in your life – irrespective of what type of debt and how much, be it credit card debt, a student loan or a personal loan or just plain owing a friend, you will know that being in debt is unpleasant. It simply makes you lose sleep; you get uncomfortable with everything. You cannot stop thinking about it. It is there in your face and it’s like your very own shadow following you everywhere.

Yet, the majority of people fall in this category. No wonder we are all stressed up and It is hard to find a smiling face on the street.

Look at the statistics below from The Money Charity

HOW TO GET OUR OF DEBT FAST

Looking at the statistics, I don’t have to tell you that is a lot of debt. So if you have a huge volume of debt and bills to pay, you are not alone, but remember, you are losing sleep alone.Unfortunately, the system has been made such that people believe they have to live on debt, they have to live that way because that is how the financial institutions want it. They want to keep you in debt until you are dead, that is why the system allows you pay just the minimum amount every month. So they are not there to help you out, they are there to help you sink deeper into debt. Our formal educational system, unfortunately doesn’t help either. There are no classes or lectures that teach people how to pay off their debt. You have to educate yourself through personal development.

This is what I found out. Beating the banks and credit card companies at their own game can be simple. We just need a little education on it.

How To Get Out Of Debt Fast

Step 1: Find Out How Much Debt You Owe In The First Place.

Most people don’t even know how much their total debt is. They know they have a balance on credit cards 1, 2, 3 and loan at bank A, B, or C but they have never really sat down and written down a total of how much they really owe. Remember your credit card or loan balance is not what you owe. It’s just the capital amount. The amount you owe is the capital amount you borrowed plus the interest rate over the duration of your loan.

Go ahead, pick up a note book. Write down all the debt you owe, list them out in order with the capital amount you owe, the total amount you owe, the annual interest rate and the minimum payments due every month.

Don’t forget store cards and other credit lines that have no physical card.

Put it in a table so you can see it clearly.

How To Get Out Of Debt FastIf you have done that, Very Well Done. How does it look? Scary? Don’t worry, you will get over it.When you do that, you will see exactly how much you owe. Is that scary? I challenge you, go ahead and do that right now before you come back and continue to the next step. This first step is the hardest step and it is the step that differentiates a serious person who is determined to take action and one who is not serious.

Step 2: Keep Your Credit Cards Very Far Away – Out of Reach

Personally I would encourage you to take a scissors and cut off all your credit cards. Yes, I just said that. If you have no credit card to use, you won’t use it. ‘If you want to declare a war of debt, you have to take away the thing that tempts you to get into debt’. Start by declaring a war on the initiator. Cut off your credit card. You can always get one or two back if you really need them in the future when your circumstances are better and you have control.

Step 3: Rank Your Debt in Order of Interest Rate (APR) – Highest to Lowest

Remember that the higher the interest rate the more out pocket you are, therefore, paying off the loan or credit card that has the highest interest rate means, more savings. Therefore, start putting money aside to pay off that loan or credit card first.

For the rest of the other ones, make the minimum monthly payments.

Repeat the process when you finish the first high interest payments.

Step 4: Save Thousands by Lowering Your Interest Rate Using Money Transfer and Balance Transfer Offers

Many people don’t know that there are consolidation options out there for your credit card.

Call your bank or walk into a branch and talk to a personal banker. Often, the credit card companies have money transfer or credit card balance transfer offers. They work out cheaper. For example, you have a credit card with a £2000 balance on it. The APR is 19.99%. You have another credit card company that offers a balance transfer offer for a 3% fee for 12 months. Bingo, if you grab that offer, you just made an interest savings of £339.80 for the year on your £2000 credit card. What will a saving of £339.80 do for you? That’s for one card only.

You can also make a call to the bank and tell them that you have had a balance transfer offer from so and so credit card. Tell them that you are willing to stay with them if they are willing to match the interest rate offer for that time duration because you are taking drastic measures to pay off your credit card balance within that time frame. You would be surprised at how successful this strategy can work.

Go ahead and do it right now. You are well on your way to paying off all your debt.

Remember, awareness and taking the first step is always the most important.

When you succeed with this step, don’t forget to celebrate your achievement and then go back and re-arrange your table in step 1. You want to make sure you are targeting a high interest bill first.

Step 5: Find  and Earn Additional Cash To Pay Your Bills

If you are still reading, then I know you are serious and you must now be thinking to yourself – ‘All these steps are great, but how do I start paying off my debt. I only make minimum payments a month because I cannot afford more. Where do I get the money to pay down all these debts?’

Remember that is what the credit companies want.

Here are the 2 approaches that I have used to cut down drastically on my debt.

Recommendation 1:

Identifying and Tapping into Hidden Income We Don’t Know We Have

Where is this hidden income found? In our everyday spending. When you look at this Article ( and many others) on the differences between the middle class and the rich, you will find the following 2 major differences:

  • The middle class live above their means and spend money on things they don’t need to impress others; the rich live below their means.

Cut down on those luxuries that you don’t need. Maybe you are paying your mobile phone at £45/ month and you have 2 of them that you don’t need. Are you always looking out for the next new model that comes out, to upgrade? Go check out your wardrobe and ask yourself if you need another set of clothes or shoes right now.

  • The middle class are friends with everybody, the rich choose their friends wisely.

Who do you hang out with all the time? Do you go out every evening or the least opportunity you get to hang out with people with whom you will spend money on stuff you don’t need to? How much do you spend on a night out? How many night outs do you get a week? Check out your weekly spend on stuff and you would be surprised.

Recommendation 2: Get a Second Income Stream To Earn More Money.

There is a limit to how much you can save no matter how good you are at saving, but there is no limit to how much money you can earn.

What does this have to do with paying off your debt? Yes, you asked it right. Can you imagine having an extra £500 to £1000/month you can put on those bills? What will that do for you? How much impact will that have on the duration you have to pay off your bills? Believe it or not, it may be easier for you to earn an extra £500 to £1000/ month than actually cutting down on your spending.

3 Ways To Earn Extra Money are:

  • Get a second job

That is an option, which many people take by the way.

Things to consider with this option:

What impact will that have on you and  your family? You are already spending a larger part of your time in your day job. How will a second job impact on you? With your current work schedule, is it feasible?

  • Ask Your Boss For A Salary Raise

I can see a smile on your face. It’s a free option.

  • My Last and Favourite Option – Earn an extra £500 to £1000 a month while still working on your day job with a potential of increasing it to £3000 – £5000 and even finally getting an unlimited earning power and quitting your day job if you want to (Of course, this is not free but well worth it) by starting a Home Business.

The Rewards:

  • A Massive Cut on your debt
  • Peace of Mind
  • A Good Night sleep and
  • Finally extra money every month to start doing the things you really want to do.

Getting Out of Debt is The Best Decision You Will Ever Make In Your Life and The Only Weapon To Use To Get Out of Debt Fast is Earning Money.

So here are your options:

  • Do Nothing and Stay in Your same position, Year In and Year Out
  • Take Action Today and You May just be surprised a Year from Now.

Wipe Out Your Debt – Download My Free eBook 11 Income Streams To See What Options You have.

For a Faster Strategy On Creating Multiple Income Streams With The Possibility Of Increasing Your Income By Thousands A Month In A Profitable Home Business Click Here

Did This Help You? If so, I would greatly appreciate it if you entered a comment below and shared on Facebook

Judith Moor

 

‘Helping You Start Your Entrepreneurial Journey & Taking It To The Next Level’

Judith Moor’s Life Style Entrepreneur Blog

Email: judith@judithmoor.com

Facebook: Judith Moor

PS:  Just curious, would you be open to a side project that wouldn’t interfere with what you’re currently doing? If so, Take A Look At This  and let me know what you like best about it by emailing me at judith@judithmoor.com

PSS: If You Are Already In A Home Business And Are Struggling With It or You Want To Multiply Your Earnings Potential, This Free Report Which Teaches You How To Quickly Build A Passive Income Will Help You. Click Here To Grab It .

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