Free up your expendable income by reducing your debt.
1. Make a list of all of your creditors and the interest rates and monthly minimum payments for each.
2. Organize your list from either highest to lowest interest rate or from lowest balance to highest balance. Which option is best for you? Whichever one of these factors is important to you:
Paying off the highest interest rate loan first will save you more money in the long run.
Paying off loans with smaller balances takes less time and can be more motivating and encourage you to keep paying down debt.
3. Put any extra cash toward the loan at the top of your list. Whenever a debt is paid off, increase the amount you are paying on the loan at the top of your list by the amount you were paying toward the paid-off debt(s).
4. Decrease your spending.
Dine out less or not at all or choose lower-priced restaurants and/or menu items.
Make gifts instead of buying them.
Get rid of or downsize your subscription services.
Shop around to find items you need on sale.
Check for better rates with your current services.
4. Increase your income.
Ask for a raise or for more hours at your current job.
Look for a higher-paying job.
Get a part-time job, even if only for a month or two.
Take up a side hustle. Drive for DoorDash or Amazon Flex. Transcribe for Babbletype or 3Play Media. Take surveys through Survey Junkie. Shop for Shipt.
Sell your stuff online through services like OfferUp, Mercari or Poshmark.
Comentários