Recently I’ve been talking to a couple of friends a lot about how I got out of debt, and I thought I’d share some tips with you guys too. Being in debt isn’t fun and the sheer relief when you’re debt free is so worth the hard work getting there.
Pay the highest interest rates off first
Obviously you need to be paying the minimum payment off every debt every month, but if you have some spare cash, plough this into paying off the highest interest debt first. Once that’s gone, do the next highest. This saves you paying out as much money in interest.
Be strict with what you spend
If you’re in debt it’s time to get serious about what you’re spending. Holidays, new shoes and nights out aren’t really necessities and so you should be cutting them out or at least cutting down dramatically. Consider something like a weeknight pub quiz with friends rather than a blowout £90 night drinking and dancing and buying a new dress every weekend. That’s A LOT of money you can pay off the debt.
Look at other ways of earning money
Could you take on a second job for a short time? Do babysitting for friends? How about looking at making money online from survey sites? I made £25 in two weeks last month from just one site, I’m picking up more as I get used to them and I know people who make £300 a month from doing a handful of these sites-that’s money that will make a bit dent in debt repayments each month.
Ask for help
If you have a partner, or a family member who may be able to lend you money to wipe your debts, and you KNOW you can make the repayments to them, why not ask if they can help? That could cut out the interest payments and mean that you’re paying off the actual debt every month. I’d advise being cautious about this though and if this is an option, I’d recommend paying the person back as quickly as is possible, you don’t want to fall out over money.
If you’re in the US and your debt is stopping you from going to college, take a look at Nationwide Debt Direct who offer scholarships for people in your position. Nationwide Debt Direct are definitely worth trying to see if they can help you out.
What’s your top tips for getting out of debt?
*This post is a sponsored post which I’ve been paid to write, however the above tips are all mine and are what I used to get myself out of debt.