6 Tips for Getting Out of Debt Quickly

Debt can put you in a very vulnerable situation. A single emergency expense, and you could find yourself out on the street. During times of global economic strife and a coming recession, it becomes even more difficult to manage. But there are ways that you can get out of debt quickly and prepare for the future.

1. Take a Look at Your Housing Expenses

Your housing expenses are very likely the biggest chunk of change you’re spending on a monthly basis. Ask yourself whether your mortgage is too expensive. What about your insurance and your property taxes? Sometimes it’s just that your housing prices are unrealistic, and if you change that one thing, you’ll be able to get out of your debt fast. Some people even sell their homes, go back to live with their parents, and pay off their debts within half a year.

2. Start Tracking Your Budget

You might not even know what’s eating up your monthly budget if you aren’t tracking it. Start tracking your budget now by using an app or an online service. Some services can automatically import your transactions from your bank and tell you where you’re probably overspending. Then, it’s just a matter of setting a realistic budget and following it.

3. Consider Debt Consolidation

Debt consolidation is a way to reduce your monthly debt payments by reducing the amount of interest you pay. Say you have three credit cards for a combined $30,000 with an average 20% APR. You can instead refinance that as a single debt with 5% APR, saving yourself money and letting you pay down the debt much faster.

4. Sell Your Home

For most people, the fastest way to get out of debt is to sell their home. If you have equity in your home, you could sell your property and start with a blank slate right now. You can pay off all your debts in no time at all and start rebuilding your financial future. If you’re not particularly attached to your home, or if it’s become a huge time and cash sink, this is usually the smartest option. Most people in debt are spending too much money on their residence.

5. Go on a Spending Diet

Very few people can keep themselves to a strict budget all the time. But what if you approach it like intermittent fasting? Try to go some days without spending money at all, such as weekdays. If you can keep to these habits, you’ll find yourself being more analytic about your spending as a whole, and you may be able to dramatically reduce the amount of money that you spend. 

6. Declare Bankruptcy

It’s a big red button, but if you declare bankruptcy, you can get out of debt very fast. Most people know that bankruptcy is an option, but they don’t want to take it. But not everyone knows that there are two types of bankruptcy. There’s the type of bankruptcy most people know about: all your debts are dealt with and your assets dissolved. There’s also a second type of bankruptcy that affects you less and restructures your debts to make them more manageable. An attorney can help you explore your options.

Everyone knows you’re not really going to be able to save money and pay off debt by “skipping a latte.” It takes discipline. Moreover, it takes looking at the major areas of your lifestyle, such as your home. If you’re currently in a home that’s just too big or too expensive for you, We Buy Houses Oklahoma City can help. Contact us today to get a fair cash offer for your property.