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9+ Fastest Ways to Get Out Of Debt

It’s very easy to get yourself into debt. Even if you don’t use your credit cards frivolously, you can still find yourself in debt. Unexpected circumstances like losing your job, for example, might force you to use a credit card to pay rent or utilities.

If you debt is getting out of hand, it may makes sense to seek extra help by speaking with a professional.

And getting out of debt is no easy task and can be stressful at times. But there are ways to get out of debt fast and live debt free. Here’s how to get out of debt.

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How To Get Out Of Debt

1.Know how much debt you have

The first way to dig yourself out of debt is to know how much debt you have. You cannot make a plan to pay off debt if you don’t know how much debt you will pay.

So you need to look at your credit report. Most importantly, you need to look at your credit score. Keeping a good credit score is crucial when it comes to applying for personal loan to pay off debt (see below).

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2. Put the credit cards away

Another step in learning how to get out of debt is stop putting yourself further into debt. That means you will have to put those cards away or cut them. You can keep one for emergency, but use it after all debts have been paid.

3. Set Up a Savings Account

While the goal is to dig yourself out of debt, not every penny you make should go into paying off debt. A good idea is also to create a savings account so when an emergency arises such as replacing a flat tire, you won’t have to rely on credit cards to dig yourself deeper into debt.

4. Create a Budget to get out of debt fast

By creating a budget, you can allocate an extra amount of money to go to your credit card debt each month.

5. Take out a personal loan

Taking out a personal loan to refinance your credit cards debt is one of the fastest ways to dig yourself out of debt. Personal loans have interest rates as low as 3%; whereas the average interest rates for credit cards is in the 18% to 22% range.

6. Borrow from your 401k or Roth IRA

You can borrow from your Roth IRA or 401k to pay off your debt. Yon won’t pay any tax or penalties as long as you can put the money back into your account on time.

This strategy is better than taking out a personal loan, because you won’t pay any interest on your money like you would on a personal loan.

7. Take a part time job or work overtime at work

Taking a part time job or work overtime at work can help you get out of debt fast.

8. Make extra cash to put toward your debt

If working overtime or taking a second job is not an option, consider doing a side hustle at home. Thanks to the internet and technology, you can easily get a side hustle to make some extra cash. Making extra cash to throw at your debts is one of the best ways to pay down debt faster.

9. Make more than the minimum payment

When you make more than the minimum payments, not only will that help you dig yourself out of debt, but it will also save you on interest.

10. Use bonuses, tax refund and raises to pay off debt faster

If you get a raise or bonus at work, it might be tempting to spend it on unnecessary things, go on a vacation, or spend it on a big splurge. Don’t! At least not when you debt. Instead use some or all that money towards your debt. These extra money can pay down a big chunk of debt. It will make a huge difference. 

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Work with the Right Financial Advisor

You can talk to a financial advisor who can review your finances and teach you how to get out of debt. Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

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