Are you struggling to pay off your debt? You’re not alone. More than 340 million Americans carry some form of debt. Whether it’s credit card debt, student loans, or hefty mortgage payments, dealing with debt can be stressful and scary.
Recent economic disruptions, including the global pandemic and inflation, added fuel to the fire. According to the Federal Reserve, consumer debt in the US has skyrocketed to more than $4 trillion.
Don’t let debt drag you down. Here are five quick ways to pay off your debt, no matter how much you owe.
1. Make a Budget
The first step to begin paying off your debt is knowing how much money you owe. Gather all your credit card statements, auto loan documents, and any other materials you need to audit your finances.
List out all the debt you owe, starting with the most expensive ones. These are the debts with the highest interest rates. Calculate how much you can comfortably put toward that debt to pay it off as quickly as possible. Paying off the loans with the highest interest rates will save you more money in the long run.
After you know how much debt you owe, create a budget. Include all your living expenses, such as mortgage or rent, food, utility bills, and other necessities. Deduct the total expenses from your monthly income and put the leftover cash toward your debt.
Remember, your budget is not set in stone. You can change it as needed.
2. Spend Smarter
How many streaming subscriptions are you paying for that you never use? You’d be surprised. Take a close look at your monthly bills and subscriptions. Identify the ones you don’t use or need. For instance, if you’re paying for a gym membership but never go to the gym, cancel your membership immediately.
For the services you do need, like internet and insurance, call your provider and see if there are any special offers you can receive. Put the extra money toward your bills.
Also, start paying for everything in cash. Stop using your credit card. If you can, leave your cards at home so you won’t be tempted.
3. Leverage Balance Transfers
Do you have high-interest credit card debt? If so, consider taking advantage of balance transfers. This allows you to move your debt from one account to another with lower introductory rates. Some balance transfers have 0% introductory rates for up to 21 months. This will help you pay off your credit card debt quicker without racking up more interest.
Don’t spend more on your new credit card. You should also try and pay your debt off before the introductory period ends.
4. Pay More than Your Minimum Balance
People that only make the minimum monthly payments on their credit cards won’t lower their debt. You must pay more than your minimum balance to pay off your debt.
The monthly minimum balance for most credit cards is 2% of the total debt. If you’re financially able, aim to pay 15% of the total each month.
5. Consider Pawn Shop Collateral Loans
Do you have valuables stashed in your attic or basement? Consider selling your valuables to a pawn shop. You can get instant cash for your unwanted items that you can put toward your debt.
Another option is a pawn shop collateral loan. These short-term loans won’t affect your credit. Instead, you’re borrowing against your personal property. You can get approved for a considerable amount without a cosigner, regardless of how poor your credit score might be.
Collateral Loans from Maxferd
At our Los Angeles pawn shop, Maxferd offers collateral loans ranging from $5 to $1 million. We accept a wide range of items as security for your loan, including jewelry, electronics, gold coins, musical instruments, and designer handbags.
Best of all, you’ll never get hit with high-interest rates. Get quick and easy cash on the spot to pay off your debt.
Contact us today by calling (800) 888-PAWN (7296) to learn more.