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Tips on How to Pay Off Debt This Next Year

Are you drowning in a flood of debt?

Do you have any idea of how you are going to save yourself and pay it off?

Well, you are not alone. The truth is, the average US individual owes $16,000 in debt, in accordance with a 2018 NerdWallet report.

If you are searching for some quick ways to get rid of your financial troubles, follow the tips below.

Always Pay More Than the Required Payment

To get rid of your financial obligations, you should pay more than the required amount on your credit card statements every month. Paying off a small percentage – normally 2-3% of your outstanding balance – only stretches the debt payoff period.

Another choice to beef up your commitment to pay off your debt is making payments weekly, instead of monthly. If the minimum installment is $200, try increasing it and pay off $300 or even more.

Save Your Work Bonuses for Paying Your Debts

If you get a work bonus for the holidays, put that money in your payoff plan.

Steer clear of the enticement to spend that bonus amount on your holiday or other high-end purchases. It is more important to fix your financial woes than own the latest designer tote.

Make A Spending Plan

The first move to get rid of  financial troubles is to create a spending plan.

You can get help from debtconsolidationloans.com to consolidate your debts. You can also use any financial tool such as Mint.com, or create your own spreadsheet that includes monthly expenses and income. After that, determine your financial position and find out where you can lower your expenses.

If you don’t cut down your expenditures, you will dig yourself into a deeper hole.

Avoid Credit Card Spending

Do you really want to stop accumulating financial debt?

Take all your credit cards out of your wallet, and leave them at home whenever you go shopping.

Try to Sell Unwanted Household Items or Gifts

If any of your old wedding presents or birthday gifts are collecting dust in the closet, sell them off and pay  off your debt. Search through your house to find things that you can sell on craigslist or eBay. Perform your due diligence to ensure that you list most of these things at a reasonable and fair price.

Pay Back the Highest Rate Debt First

Create a list of your credit card debts and sort them out from highest to lowest.

After sorting them out, pay off the most expensive debts first, then the others one by one.

By fully repaying the total amount with the highest interest first, you will increase the payment on your credit card with the highest APR while still making your minimum payment on the rest of the credit cards. This way you will have peace of mind that you have paid the bigger ones first and now can pay the small ones with greater ease.

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