Who wants to spend lots of money getting out of debt? Oftentimes, this can feel inevitable though. Fortunately, there are some ways you can effectively reduce or eliminate your debt without spending money you don’t have.
Here are some of the cheapest ways to get out of debt.
Generate Additional Income
When it comes to this subject, there’s often a focus on different programs or ways to cut costs. While these are certainly valid, and can definitely be instrumental in beating debt, they’re not the only game in town. When it comes to the cheapest ways of getting out of debt, boosting your income sort of breaks the scale.
Obviously, bringing in more money isn’t as easy as just snapping your fingers and having money appear before your eyes. If that were the case, everyone would be doing it. However, there’s something to be said for boosting your income as a means of beating debt.
Here are a few options to consider:
- Looking for a job that pays more money
- Trying to get a raise at your current job
- Finding a side job to make a little bit extra
- Selling unused items for supplemental income
If you’re on the precipice of making headway on your debt, getting a few more bucks in your bank account can be the thing that pushes you into the black.
Work with a Credit Counselor
Credit counseling services are a great resource for people working through some serious debt. They can offer you an array of services — many of them for free. A credit counselor can help you with things like budgeting, getting your credit report, and talking to your lenders. They can even help set you up with a debt management plan.
One of the best things about credit counseling services is much of what they offer is free. Many are set up as non-profit organizations, existing to help consumers beat their debt. This is a cost-effective way to get a handle on your finances.
Compare Debt Relief Options
It’s often not a good idea to buy the first thing you see. The same rule applies when it comes to debt relief. If you sign up for the first services that come across your radar, you might be in for an unpleasant surprise.
In other words, while there are many advantages of debt relief programs, not all of them are reliable. When it comes to dealing with your finances, there’s always going to be someone out there who wants to take advantage of you. Check out reviews online to see what people are saying about various organizations. Freedom Debt Relief is one company that consistently receives strong consumer feedback. Less trustworthy programs might use shady tactics to sneak in hidden fees or unfavorable clauses in your contract.
Don’t Rule Out Balance Transfers
A credit card balance transfer can be an affordable way to get out of debt if you do it right. With this, you’re consolidating your various credit card accounts onto one with a low introductory interest rate. There is a catch, however. Balance transfers usually come with a fee in the range of three to five percent. This works out to $30 to $50 per $1,000 of debt.
If you take advantage of the introductory zero-interest period, that cost can be well worth it. But it’s crucial to note balance transfers can cost you dearly if you don’t reduce your debt during that time. In fact, you can end up with even more debt.
Reevaluate All Expenses
Taking a fine-toothed comb through your expenses is another free way to potentially help yourself improve your financial picture. All it will cost you is a bit of your time. Do you have any recurring subscriptions you’re not using enough to justify their costs? You can check by looking through your credit card and checking account statements. Cutting out unneeded subscriptions can potentially save you hundreds per year.
You don’t want to have to spend a bunch of money to get out of debt.
It pays to find inexpensive ways to beat debt.