Is your debt keeping you from making major purchases or being able to properly invest in your future? With high interest rates and monthly fees, debt seems to get worse over time rather than better, particularly if you’re only paying off the minimum amount each month. Yet with an already-stretched household budget, how can you find more money to pay off debt quickly? It’s time to take a closer look at your financial situation and get creative. The following are five places you can turn to find some spare cash and get out of debt.
1. Your Tax Refund
Do you usually get a tax refund each year? Rather than using it to pay for your next holiday, put it back immediately into paying off smaller debts. Until you’re fully debt-free, avoid making the usual plans regarding how you’re going to spend it. This is one of the biggest windfalls that many consumers receive during the year. It’s essentially a savings fund that you can put directly back into paying down debt.
2. Old Items around the House
Most of us have old electronics, clothing, and books laying around the house that we no longer use. Instead of automatically donating them to charity, think about trying your hand at selling them and using the spare cash to pay off debt. You can take a look at this funny advert from Quicksales for inspiration, which shows how you can benefit from a bit of quick cash. Sites like Quicksales, Gumtree, Craigslist, and even eBay are all good places to start.
3. A Personal Blog
Do you already write a blog for the benefit of your friends and family? Consider signing up for advertising programs like Google’s Adsense. Although you’re unlikely to strike it rich this way, you’ll make some spare cash every time someone clicks on an advert on your website. You can increase your chances of exposure by sharing your blog on social media and updating it regularly.
4. Your Other Credit Cards
At first glance it may seem counter-intuitive to simply transfer one debt to another. Yet if you have a credit outlet with lower interest rates, you’ll want to take advantage of these to save money over time. Consider transferring a high-interest debt to a lower interest credit card, and you may be able to pay it off faster. If you don’t currently have a low interest credit card, keep an eye out for promotional offers. Many banks will offer loans with low rates for a specific introductory period. The idea is to pay off your debts before that introductory period ends. Rather than holding onto the money you save in interest, apply it towards the principal to pay down debt as quickly as possible.
5. Your Savings Account
It’s scary to lose the safety net of savings, but using your savings account to pay off debt can pay off in interest saved. The higher the interest rate is on your debt, the more you’ll be essentially earning back in repayment by paying it off with savings. You’ll make back more this way than you would with the small dividends your money makes in savings.
The best way to defeat debt is to chip away at it slowly and steadily. From blogging to creatively rearranging your finances, these are all a few ways to dig up some extra cash when you need it to pay down debt.