There Is Something You Can Do To Reduce Your Debt (2024)

There Is Something You Can Do To Reduce Your Debt (1)

A Collection of Resources Related to Debt Reduction Strategies

When you’re in debt, you can’t do the things you love; you can’t drop everything and start something new. You need to keep making those payments weekly or month after month. It’s a never-ending cycle that can consume your whole life as you are forced to work and pay off debt.

Some people have spent their entire lives going to work day after day, just making ends meet. They are unable to enjoy their lives; instead, they live to work and work to pay off debt with no end in sight.

Debt Is A Normal Way of Life

Payment plans allow us to purchase big-ticket items. Without these options in place, people wouldn’t be able to buy homes or cars. How many people do you know that pay cash for their brand-new cars or their home? Sure, there are some, but most people have payment plans.

Spending stimulates the economy, creates jobs, and keeps money in circulation. If people spent less and purchased only the necessities of life, then our economy wouldn’t be what it is today. It’s the spending that keeps the economy healthy.

Credit cards can be a lifesaver in absolute emergencies, but that’s it, avoid them.

The problem with using credit cards is they allow you to make impulse purchases because there is a set credit limit you can use, just sitting there. You don’t have to ask your banker for the loan; you pull out the card, and the money is readily available. So, instead of thinking this is a loan, you think, ” How much room do I have left on my credit card? ” ” Okay, I have enough; I can make this purchase, no problem. ”

Living with debt is typical in North America. Do you have $6,800 in credit card debt? Well, that’s no big deal; that’s average. A rough calculation for interest alone is around $1,300 a year, averaging about $109 monthly.

If you’re paying the minimum, most of the money goes towards interest. Now, what if you have four or five cards with that balance? You’re now paying over $400 monthly in interest with only a tiny amount towards paying off the balance. At that rate, it will take years to pay off your credit card debt.

Consider the above payments and add the mortgage, car payments, and other loans, and you’ll find most of your income is going toward interest.

Is it worth it?

Remember all the fancy items you purchased on credit? I’m not judging because I have been there, and it’s the worst thing ever. There is no way out if you’re on a fixed income. You must either consolidate your debt, eliminate all credit card debt and/or make more money to start reversing the debt process.

Debt Is Like Having A Bad Boss

Think of it this way: your financial debt is like having a bad boss who doesn’t interact with you and only has demands you must fulfill. You can’t do anything you want unless your boss allows it, and he never does. Your boss is strict, unforgiving, and has no tolerance for delay. You don’t matter to him; you are just a number.

Living with debt keeps you from changing your life, taking a different career path, improving your education, investing in an opportunity, or simply taking a break. It keeps you where you’re at and gives you zero tolerance for change. The only option is more debt. Have you ever taken a cash advance on one card to make a payment on another card?

Who would want to live like that? Yet many of us do because we think this is normal, don’t have a choice, or are unsure what to do.

There are steps you can take to get out of debt.

First and foremost, you need to want to get out of debt and work with the right people who can help you achieve debt-free living.

    1. Get a consolidation loan to pay off all your credit cards.
    2. Cancel all your cards except for one with a low-credit limit used only for emergencies or for situations like hotel rooms and car rentals that require a credit card.
    3. Get on a budget.
    4. Take a vow to never, ever live above your means again.

The above is easier said than done, and you may need professional help to get you on the right track, but going through some discomfort now will allow you to live a better life.

In the following resources, you’ll find an abundance of resources that will help you get out of debt and stay that way. Take some time to go through the sections to find the articles that interest you the most.

How to Pay off Your Credit Card Debt

Credit card debt is one of the most expensive types of debt to carry; they have high-interest rates and should only be used for emergencies.

If you have a lot of credit card debt, then this is something you want to eliminate as soon as possible. It’s time for a change, and the resources below will get you started and inform you of what steps and options you have. Take a look at the collection of articles below that can help you get back on track with your finances.

Tips to Pay Off Credit Card Debt Fast

How to Pay Off Credit Card Debt | US News

5 Ways To Pay Off Credit Card Debt Faster

How to Pay Off Credit Card Debt Fast | Credit Karma

Simple Debt-Free Living

Living above your means is what gets you in trouble, racks up those credit card charges, and keeps you working without saving. You’ll be happier with less when you figure out how to live a debt-free life.

Think about it. How much stuff have you purchased on credit? How much did you pay for it? If you sold it all today, would you get your money back? Would you get half your money back? Would you even get a quarter of it back?

Another consideration: With all that stuff, are you happier?

You can still be happy with less. The resources below offer tips and insights about avoiding a life of spiraling debt.

Look to see what your life would be like if you were debt-free.

Debt-Free Living – Simple Living Daily

7 Characteristics of Debt-Free Living | DaveRamsey.com

Debt-Free | The Minimalists

4 Simple Steps For Living A Debt Free Life | Frugality Magazine

How to Increase Your Income

Another way to reduce your debt is to increase your income and use that money to pay off your debt.

A good debt reduction plan and increased earnings will improve your financial situation. Once you focus on your finances, you’ll develop better spending habits.

Try the resources below that can help you increase your income. Even a 5% boost is useful.

12 Ways to Increase Your Income This Month

10 Ways to Increase Your Annual Income

5 Ways to Increase Your Income

18 Easy Ways to Boost Your Income and Make More Money

Money Making Ideas: 21 Smart Ways to Increase Your Income

How to Live on a Budget

If you don’t budget, it’s easy to go into debt because your spending spirals out of control, and you’ll find yourself in a situation where you can’t make ends meet.

A budget gives you boundaries and helps you control spending. Once you create a budget that works for you and stick to it, managing your finances will be simple and painless.

The resources below can help you create and stick to a budget that works for you.

How To Live On a Budget | My Money Coach

5 Tips for Living Comfortably on a Tight Budget | HowStuffWorks

How to Live on a Budget with 4 Valuable Lessons – The Dough Roller

50 Ways to Live the Big Life on a Small Budget | GOBankingRates

More Resources

Strategies

How to Pay Off Debt: 6 Strategies That Work – Credit Card Insider

Ways To Get Out Of Debt | Bankrate

10 Steps and Strategies to Getting Out of Debt in Less Than a Year – AARP Eve…

Snowball Debt Reduction

How to Get Out of Debt With the Debt Snowball Plan | DaveRamsey.com

How to Use Debt Snowball to Pay Off Debt – NerdWallet

Debt Reduction Companies

Debt Settlement Companies | Find the Best Loan for You | US News

The Best Debt Relief Companies| Bankrate

Services

Debt Consolidation & Credit Counseling | Debt Reduction Services

View Your Account

Getting Out of Debt: The Truth About Debt Reduction | DaveRamsey.com

Programs & Software

Top 3 Free Online Debt Reduction Tools

Pay Off Your Debt: Tools and Tips

The 5 Best Debt Tracking Systems

Apps

6 Debt Payoff Apps You’ll Want To Download ASAP | HuffPost Canada Money

Debt Paydown Calculator – Eliminate and Consolidate Debt

Debt Snowball Calculator | DaveRamsey.com

Spreadsheet

Free Debt Reduction Manager for Excel

I love this debt reduction Excel template & I hope you do too

Spreadsheet for using snowball method to pay off debt – Business Insider

Courses

Courses on Lynda.com Related to Debt Reduction Strategies

Courses on Udemy.com Related to Debt Reduction Strategies

Books

Books from Amazon Related to Debt Reduction Strategies

Google Book Search Related to Debt Reduction Strategies

News

Latest News Related to Debt Reduction Strategies

YouTube

Videos Related to Debt Reduction Strategies

There Is Something You Can Do To Reduce Your Debt (2024)

FAQs

There Is Something You Can Do To Reduce Your Debt? ›

Debt reduction strategies like debt consolidation, debt settlement and credit card balance transfers don't actually help you get out of debt. Making a budget, increasing your income, and lowering your expenses are some ways you can get out of debt faster.

How can you reduce your debt? ›

How to get out of debt
  1. List out your debt details.
  2. Adjust your budget.
  3. Try the debt snowball or avalanche method.
  4. Submit more than the minimum payment.
  5. Cut down interest by making biweekly payments.
  6. Attempt to negotiate and settle for less than you owe.
  7. Consider consolidating and refinancing your debt.
Mar 18, 2024

What is the solution to debt? ›

Try to negotiate an agreement with the people you owe money to change the dates and amounts of your payments based on your budget. Try to consolidate your debts with one financial institution (get one loan to pay off all or several other loans at once).

How to reduce debt fast? ›

Consolidate your debts

A consolidation loan may help you get out of debt if: it has a lower interest rate than the debts you are consolidating. it has a lower monthly payment than all your other debts put together. This way you can put the extra money toward paying down your debt faster.

What are three ways to avoid debt? ›

How to avoid debt
  • Pay bills on time.
  • Start an emergency fund.
  • Pay with cash.
  • Strategies for paying down debt.

Why is reducing debt good? ›

Wiping out high-interest debt on a timely basis will reduce the amount of total interest you'll end up paying, and it'll free up money in your budget for other purposes. On the other hand, not having enough emergency savings can lead to even more credit card debt when you're hit with an unplanned expense.

How to reduce debt in business? ›

7 ways to reduce your business debt
  1. Consolidate or refinance your loans.
  2. Cut costs by implementing a zero budget.
  3. Improve cashflow.
  4. Seek out grants and support.
  5. Seek equity finance.
  6. Increase sales.
  7. Restructure.

Is reducing debt good? ›

Investing and paying down debt are both good uses for any spare cash you might have. Investing makes sense if you can earn more on your investments than your debts are costing you in terms of interest. Paying off high-interest debt is likely to provide a better return on your money than almost any investment.

Who owns US debt? ›

There are two kinds of national debt: intragovernmental and public. Intragovernmental is debt held by the Federal Reserve and Social Security and other government agencies. Public debt is held by the public: individual investors, institutions, foreign governments.

What does debt reduction mean? ›

Debt relief refers to measures to reduce or refinance debt in order to make it easier for the borrower to repay it. Options for debt relief include forgiving a portion of the debt, lowering the interest rate, stretching payments over a longer period, or consolidating multiple debts into a single, lower-interest one.

Who does the US owe money to? ›

Nearly half of all US foreign-owned debt comes from five countries.
Country/territoryUS foreign-owned debt (January 2023)
Japan$1,104,400,000,000
China$859,400,000,000
United Kingdom$668,300,000,000
Belgium$331,100,000,000
6 more rows

What is debt free for life? ›

What is Debt Free Life ® ? Debt Free Life ® is a modern way to pay off your debt using the cash value of a specialized participating whole life insurance policy.

Can I get rid of a bad credit history? ›

The short answer is no. Fixing bad credit is a time-consuming process that often takes months. It involves contacting credit agencies and lenders to dispute inaccurate information, and these can take up to 30 days to respond to your request.

How to pay $30,000 debt in one year? ›

The 6-step method that helped this 34-year-old pay off $30,000 of credit card debt in 1 year
  1. Step 1: Survey the land. ...
  2. Step 2: Limit and leverage. ...
  3. Step 3: Automate your minimum payments. ...
  4. Step 4: Yes, you must pay extra and often. ...
  5. Step 5: Evaluate the plan often. ...
  6. Step 6: Ramp-up when you 're ready.

How to pay off $20k in debt fast? ›

Use a debt consolidation loan

With a debt consolidation loan, you borrow money from a lender and roll all of those debts into one loan with a single interest rate. This allows you to make one monthly payment rather than paying multiple creditors.

How to pay off $10,000 credit card debt? ›

7 ways to pay off $10,000 in credit card debt
  1. Opt for debt relief. One powerful approach to managing and reducing your credit card debt is with the help of debt relief companies. ...
  2. Use the snowball or avalanche method. ...
  3. Find ways to increase your income. ...
  4. Cut unnecessary expenses. ...
  5. Seek credit counseling. ...
  6. Use financial windfalls.
Feb 15, 2024

How to get rid of $30k in credit card debt? ›

How to Get Rid of $30k in Credit Card Debt
  1. Make a list of all your credit card debts.
  2. Make a budget.
  3. Create a strategy to pay down debt.
  4. Pay more than your minimum payment whenever possible.
  5. Set goals and timeline for repayment.
  6. Consolidate your debt.
  7. Implement a debt management plan.
Aug 4, 2023

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