Home > Debt Articles > The Best Ways to Get Out of Debt

The Best Ways to Get Out of Debt

Todays Date: December 15, 2018

You might have heard that there are a million ways to make money. Likewise, there are probably just as many ways to get out of debt, but when it comes to achieving that goal honestly and effectively, your options are reduced. Here, we will explore three of the best ways to get out of debt without having to resort to debt avoidance techniques like bankruptcy or fraud (yikes). The first two will probably not come as much of a surprise, but the last one will certainly help expedite your efforts.

One of the most popular ways to get out of debt involves creating a budget and finding ways to reduce expenses. The money you save on expenses, whether $10 per week or $400 per month, can be used to pay down overall debt. When relying on this method, you often make sacrifices to your lifestyle. Instead of eating out twice per month, you eat out once. Instead of buying the expensive brands, you buy the cheaper. Still, this is definitely one of the five best ways to get out of debt.

When it comes to popular ways to get out of debt, looking at increasing income is definitely in the top three. This is because it is relatively easy to do in some cases. To earn more income, debtors can either take on a new job at a high rate of pay or they can get a second job. Ideally, the extra funds earned are paid toward debt. What makes this option a little more difficult, particularly at times like these, is that getting a new job offer could require updated skills or knowledge, and in some cases can mean extended travel. These expenses are often offset by the higher earnings.

Our third recommendation uses both of the previous strategies. In other words you would reduce expenses while simultaneously increasing income. For example, suppose you spend $500 every month on expenses. This would mean cutting back, say, 20% or $100 and spending only $400 instead. As well, assume you earn $2,500 every month after-tax. You would want to find additional work that would improve cash flow by, say 5% or $125. At the end of the year, the $100 in savings and $125 in extra income would result in additional debt payments of $2,700! It may not seem like a lot on its own or after every month, but after a full year, the repayment amount clearly adds up and has an accelerating impact on your total debt.

Hopefully, these three popular ways to get out of debt have given you some inspiration and insight into how easily you can work your way out of debt. Clearly, these are not top-secret tactics. In fact, they are easily executable and once you put such tactics into practice you may even uncover other ways to get out of debt. The point is that taking action should come first and if any of these three methods can help, then please go ahead and get started today.

To learn more
ways to get out of debt visit How To Repay Debt.com, Chris Blanchet’s website where only original materials are published. Alternately, for an abundance of debt-related information, you may visit
Debt Consolidation Opinions.com where Chris is a regular contributor among a dozen or more other experts in the field.

http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/digg_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/reddit_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/dzone_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/stumbleupon_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/delicious_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/technorati_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/google_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/yahoobuzz_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/mixx_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/twitter_32.png http://financearticledirectory.com/wordpress/wp-content/plugins/sociofluid/images/jamespot_32.png
Comments are closed.