Without a doubt, being in debt brings a lot of frustration. The fact that you need to pay it off places a lot of financial and psychological pressure on a person. Not to mention the apparent sense of injustice when you need to pay those high-interest rates. But, with the right plan and motivation, you can get out of your debt. Of course, asking for a promotion or getting a higher-paying job seems like the most obvious solution. However, other creative ways can help you get out of debt.
Most popular and efficient ways to get out of debt
Despite the difficulties it presents, paying off your debt doesn’t have to be so grim. In general, you will have to pay it back anyway; that’s the bad part. But, on the good side, you can at least make it interesting. Start by mixing up different challenges each month, and see how far it can get you going. Stop investing in unnecessary things, gather information about debts, and work on increasing your income. It won’t be easy, it will take some time, but it will eventually get you where you want.
To give you some idea about what you can do, here are some creative ways to get out of debt:
- Consider downsizing
- Sell your old stuff
- Share your costs
- Save those coins
- Practice coupon shopping
- Avoid impulsive shopping
- Cut out unnecessary subscriptions
- Make your own food… and coffee
- Monetize your hobby
- Put expensive hobbies on hold
- Find free entertainment
Downsizing can be a part of your debt-paying solution. In some situations, you can plan it before taking those unpleasant loans. If you are planning to invest in owning a place, why not start with smaller housing options. On the other side, if you already own a house, maybe moving to a smaller home can be the right step to take. In essence, your debts will be much lower in the first place. Meanwhile, there are fees you should take into account when moving, so don’t forget to calculate them as well.
Sell your old stuff
Chances are, you have plenty of old stuff you don’t use. Go through all your possessions and separate everything you don’t need. The secret to good budgeting is that all those things are potential money you can use to pay off your debt. Gather the old clothes, furniture, and similar belongings and sell them. If the circumstances allow, you can organize a yard sale. If not, you can always sell your stuff online.
Share your costs
If you are a student, you are probably already familiar with the roommate concept. Two or more people can live in the same place and share their living costs. However, this can be applied in many other circumstances as well. For example, if you are in a serious relationship, maybe it’s time to join forces with your partner and move in together. This way, both of you will reduce your living costs, allowing you to save more money in the long run.
Save those coins
If you don’t already have your piggy bank, maybe it’s time to make one. Don’t doubt the fact that debt-free people are patient and happy people. So save every piece of change you can, and don’t touch them until the piggy bank is full. At the end of the month, you might not believe how much you have saved this way.
Practice coupon shopping
Another great way to save money and use it to pay off your debt is by using coupons. Don’t be afraid to take some time to plan how to get and use them. Many places offer coupons and even more of those that accept them. All you need is a little effort in collecting them before going to your grocery shop. Just make sure you use them on stuff you regularly buy. Also, don’t forget to check online stores because many offer digital coupons, promo codes, and discount vouchers.
Avoid impulsive shopping
Basically, if you want to save money, you have to plan your grocery list and stick to it. Resist the urge to buy things you find interesting on the go. If it’s not on the list, then it probably is not necessary. Of course, there are always exceptions, but try not to be impulsive without an absolute need.
Cut out unnecessary subscriptions
Many of us don’t even realize how many things we pay for every month. It can be a favorite magazine you buy out of habit or a cable TV subscription, even when you watch most things online. Dig through your monthly costs and see if you can find something useful. You can cancel everything you don’t necessarily need or use, at least until you’re out of your debt.
Make your own food… and coffee
We spend a large portion of money on restaurants and coffee shops. But, what if you can save a part of that money to pay off your debts and loans? One way to do it is to make your own food. If you don’t know how to cook, there are many online resources with recipes and instructions you can use to learn. Remember not to be afraid of mistakes because you will make them. But with practice, you will soon realize how tasty and, at the same time much cheaper, it can be. In essence, the same principle goes for coffee.
Monetize your hobby
In most cases, we spend money on hobbies. But, sometimes they can be used to earn money as well. If you like to paint, use your free time to paint something you think people will like. Once it’s finished, try to sell it online. You might be surprised how many people want to buy beautiful things, even if it’s not Picasso. Not only will you enjoy the process, but you will also earn something.
Put expensive hobbies on hold
Speaking of hobbies, many can be pretty expensive. If you don’t have the option to monetize it, and it’s a costly hobby, put it on hold for a while. Generally speaking, it makes no sense to force a particular hobby when you have more pressing matters, like paying debt, to deal with.
Find free entertainment
We all enjoy different types of entertainment, often not realizing there are some free alternatives. Instead of spending money on concerts, theaters, and bars, try to find some free options. Many cities offer free events you can enjoy, like free concerts. Also, try to change your perspective. Instead of walking down the river and passing all those tempting restaurants, try hiking through nature instead. If you are into movies, many websites offer cheaper alternatives to watch something of interest.
These are just some of the ways to save money. There are dozens of other creative ways to get out of debt; you just need to do some research. Set your priorities right, carefully plan your next steps, and with enough endurance, you will be free of your debt after a while.