что делать, если есть просрочки, как вылезти из долгов и кредитов, выплатив их быстрее

Взяли кредит, но потеряли работу? Расходы превышают доходы и на выплату займа совсем нет средств? В такой ситуации рискует оказаться каждый заемщик. Как выбраться из долговой кредитной ямы? Где искать средства на выплату займа? Как общаться с назойливыми коллекторами?

В статье вас ждут ответы на эти вопросы и проверенные рекомендации, как не попасть в долговую яму и держаться на плаву, если вы взяли кредит.

Содержание статьи

Что такое долговая кредитная яма

Ответ на этот вопрос прост. Так называется ситуация, когда вы не в состоянии рассчитаться по кредиту или хуже того, взяли еще один кредит, чтобы рассчитаться с предыдущим. Долг растет, а возможностей его погашения не появляются.

Историческая справка: До XIX века в России действовали долговые тюрьмы, куда попадали люди, задолжавшие своим кредиторам. Камеры в тюрьмах были расположены под землей. Так возникло понятие «долговая яма».

К должникам, не имеющим возможности рассчитаться по кредиту, применяются штрафные санкции. Банки сначала воздействуют на заемщика с помощью регулярных напоминаний, затем понимая, что должник не сможет вернуть кредит, обращаются в коллекторские агентства. Складывается крайне неприятная финансовая ситуация, которая отражается не только на самом должнике, но и на членах его семьи.

Причины попадания в долговую яму:

1. Вина заемщика. Долги возникают, когда заемщик не планирует бюджет, не умеет откладывать деньги, распоряжаться ими, принимает импульсивные решения, живет не по средствам.
2. Вина обстоятельств. Внезапная потеря трудоспособности, болезни, сокращение штата на рабочем месте – нередкие причины кредитных ям.

Если вы оказались в долговой яме, не отчаивайтесь. Выход из ситуации есть и первый шаг к нему – осознание проблемы.

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Что делать если попал в кредитную яму и негде взять деньги

Если вы поняли, что оказались в сложной финансовой ситуации и рассчитываться по кредиту вам нечем, сообщите об этом кредитному эксперту.

Не паникуйте, не думайте, что признание финансовой несостоятельности – это позор. От попадания в такую ситуацию никто не застрахован.

Пошаговая инструкция, как действовать, попав в кредитную яму:

1. Постарайтесь взять себя в руки. Начните искать пути выхода из ситуации. Запишите на листке бумаги все мысли, которые приходят вам на ум — например, продать что-то ценное.
2. Попросите у банка изменить график платежей, провести реструктуризацию вашего долга.
3. Попросите «кредитные» каникулы – отсрочку расчета по кредиту. Отсрочив расчет по кредиту на год, вы сможете поправить свое финансовое положение.
4. Подумайте о поиске дополнительного источника дохода (подработка, фриланс).
5. Составьте список своих ежемесячных трат и подумайте, как сократить расходы.

Варианты, где достать деньги

Бюджет семьи пересмотрен, графики выплат по кредитам изучены, ценности продавать не хочется либо нет возможности – осталось только увеличивать свой доход.

Рассмотрим несколько видов заработка и действенных способов экономии бюджета.

Способы заработков

У вас есть официальное место работы, но не высокая заработная плата? Улучшить свое финансовое положение при желании может каждый.

Фриланс или удаленные профессии

Массу возможностей для заработка дает интернет. Освоив одну из удаленных профессий, вы сможете не только поддерживать бюджет семьи, но постепенно рассчитаться с догами. Интернет-маркетолог, программист, дизайнер – одни из самых высокооплачиваемых и перспективных направлений в этой отрасли.

Подработка

Работа няни, сопровождающей на кружки и секции ребенка-школьника, частного репетитора не приносит высоких доходов, но и с такой подработкой ваш семейный бюджет немного увеличится.

Работы по озеленению, погрузка/разгрузка, работа в ночную смену (комплектовщики, упаковщики и подобные им профессии) – подработка для мужчин и женщин, оказавшихся в нестабильной финансовой ситуации и не требующая особых навыков и длительного обучения.

Продажи

Перепродажа товаров из Китая для некоторых россиян становится основным источником дохода. Для торговли нужен перспективный для российского рынка товар, надежный поставщик и площадка для перепродажи (например, Avito или реальный магазин).

Организация совместных покупок из интернет-магазинов — еще один способ заработка на продажах.

Увеличение доходов

Улучшить материальное положение можно приобретением новой профессии, переквалификацией, открытием собственного дела, но на это потребуется время, которого у должника как раз нет. Если действовать приходится срочно, ищите работу с высоким окладом, например, должность менеджера по продажам в сфере, где ведутся длительные и сложные переговоры, а продажи совершаются в несколько шагов, где от одной сделки вы будете получать приличный процент.

Если у вас есть возможность продать что-то ценное, деньги, вырученные продажи можно направить на инвестирование. Предварительно изучите эту нишу, пообщайтесь с экспертами, чтобы ваши риски были максимально оправданы и принесли желаемый рост доходов.

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Поиск способов выплат

Если у вас несколько кредитов, установите порядок выплат, опираясь на условия договоров кредитования, сроков выплат, процентной ставке и размере штрафа за просрочку.

Пообщайтесь с кредитными экспертами по каждому из них и договоритесь об отсрочке, льготном периоде выплат.

Еще один способ выплаты кредита — так называемое «перекредитование», то есть оформление нового кредита по гораздо меньшей процентной ставке. Если по старому долгу высокая ставка, банк предлагает оформление нового займа с меньшей. Сумма этого кредита пойдет на погашение предыдущего.

Важно! Это единственный случай, когда оформление второго кредита решит проблему с долгом по первому займу с высокой процентной ставкой.

Снижение расходов

Разумная экономия — не только способ правильно распоряжаться финансами, но и высвободить средства, которые пойдут на погашение кредита.

Советы по сокращению расходов помогут вам рационально распоряжаться своими финансами:

• составляйте список покупок, отправляясь в супермаркет;
• не совершайте импульсивных покупок;
• сразу откладывайте деньги на обязательные платежи (кредиты, коммунальные услуги),
• откажитесь от покупки электроники или бытовой техники, если не до конца уверены в ее нужности;
• выбирайте качественные товары, но не раскрученных марок, чтобы не переплачивать за бренд;
• посещайте супермаркеты, плотно пообедав дома, чтобы избежать соблазна покупки фаст-фуда и прочих продуктов под воздействием голода;
• берите с собой на работу, в поездки еду собственного приготовления, экономьте на покупке обедов и перекусов;
• покупайте товары на рынках, в интернет-магазинах, совместных покупках или на досках объявлений.

Кроме этого, старайтесь следить за здоровьем и самостоятельно обслуживать свой автомобиль, если он у вас есть. Многие поломки можно устранять своими руками, не переплачивая за услуги СТО, а профилактика поломок всегда дешевле ремонта.

Что делать, если по кредитам есть просрочки?

Прежде всего, не поддавайтесь панике и не делайте глупостей. Самое рациональное решение — признать свое кризисное финансовое положение и пойти на сотрудничество с банком.

Важно! Ни в коем случае не скрывайтесь от представителей банка, если они пытаются установить с вами контакт. Честно расскажите о причинах просрочки и попросите помощи.

Чего категорически не стоит делать, если у вас просрочен кредит:

• брать второй кредит, чтобы погасить первый без консультации с кредитным экспертом;
• брать займ в микрофинансовых организациях;
• искать «легкие» способы заработка, типа азартных игр, мошенничества, манипуляций с наркотическими веществами и прочей незаконной деятельности.

Что делать, если донимают коллекторы

Когда должник не в состоянии погасить долг по кредиту и не взаимодействует с банком для разрешения этого вопроса, у финансовой организации есть один выход – обратиться в коллекторское агентство, чтобы добиться от должника выполнения его обязательств.

Коллекторы практикуют телефонные звонки, выезд на дом к должнику, рассылку писем с требованием погасить задолженность.

Федеральный Закон «О микрофинансовой деятельности и микрофинансовых организациях» четко регулирует взаимодействие коллекторов с должником, но настойчивость «кредитных вышибал» во многом зависит от того, как вы строите с ними общение.

Как вести себя с коллекторами

Старайтесь строить беседу в конструктивном ключе, не стесняйтесь задавать вопросы. Список обязательных вопросов для коллектора поможет вам вести диалог и не стать жертвой мошенников.

Выясните у коллектора:

1. Имя, отчество, фамилию и должность лица, которое обращается к вам по телефону или лично.
2. Полное наименование коллекторской компании, от лица которой действует представившийся.
3. Название банка или кредитной организации, давшей полномочия представителю коллекторского агентства взаимодействовать с вами.
4. Основание обращения к вам.

Важно! То, что вы – должник, не значит, что коллектор имеет право обращаться к вам неуважительно, звонить в неустановленное законом время или общаться с родственниками без вашего согласия.

Вы имеете полное право оградить своих родных от общения с представителем коллекторского агентства. Если вы не подписывали разрешения на общение с вашими близкими, соседями или любыми третьими лицами, а ваши права нарушаются, обращайтесь в полицию, банк, Роспотребнадзор. Не забудьте подкрепить заявление доказательствами – записью телефонного разговора с угрозами и оскорблениями или свидетельства соседей и родни.

Как избежать попадания в долговую яму

Любую проблему лучше предотвратить, чем искать пути ее решения. Это в полной мере касается ситуации с кредитами.

Не попасть в кредитную яму вам помогут простые советы:

1. Планируйте свои кредиты. Если вы не уверены в своей платежеспособности (нестабильная ситуация на работе, бизнес не приносит хороший доход, упала выручка от продаж) не берите займ.
2. Оцените свою платежеспособность. Продумайте, от чего вы готовы отказаться, если с доходами станет туго, а выплачивать кредит, чтобы не росла задолженность, все равно придется.
3. Оцените возможности дополнительного заработка, резервные источники дохода, чтобы вы могли поддерживать привычный уровень жизни и своевременно гасить задолженность по кредитованию.
4. Не надейтесь на обещания начальства о повышении з/п, действуйте уже сейчас, подрабатывая по выходным и в свободное от основной работы время.
5. Взвесьте все за и против кредитования. Обсудите с семьей, действительно ли вам нужен банковский кредит, подумайте, не проще ли будет скопить нужную сумму, откладывая средства домашнего бюджета.

Правила ведения бюджета

Несколько правил ведения семейного бюджета, которые помогут вам держаться на плаву:

• заведите блокнот или «электронного помощника» — приложение, в котором удобно вести учет расходов и доходов;
• ведите отчет ежедневно – через месяц вы увидите, какие суммы вы тратите и на чем действительно можно сэкономить без ущерба для своей нервной системы и качества жизни;
• обдумывайте свои траты, то есть не просто запрещайте себе что-то купить, а анализируйте необходимость покупки (так ли она необходима, чем ее можно заменить, сколько времени вы будете зарабатывать сумму на ее приобретение).

Рекомендации по теме

Самая главная рекомендация – берите кредит тогда, когда у вас есть «финансовая подушка». Такой «подушкой» считаются семейные сбережения, ценности, которые можно продать, акции, альтернативные (кроме основного) источники дохода.

Тогда потеря работы или проблемы в бизнесе не помешают вам рассчитаться с банками и не поставят вас на грань бедности. Вам не придется решать вопрос, как выбраться из кредитной ямы, если негде взять деньги.

Меняйте свою философию! Берите кредит не тогда, когда и так не на что жить, а тогда, когда дела идут в гору, а заемные средства вам нужны на новые достижения и свершения – новые проекты, направления, смену профиля работы.

Заключение

Пребывание в сложной финансовой ситуации – не приговор, а лишь непростой этап в жизни, который каждому под силу преодолеть без ущерба для своей кредитной истории, нервной системы и семейного бюджета.

Главное — вовремя осознать серьезность ситуации и принять меры по ее улучшению. Научитесь рационально распоряжаться финансами, установите график выплат по долгам, найдите дополнительные источники дохода, и вы успешно преодолеете свои временные трудности.

Как выбраться из долгов (раз и навсегда)

Для начала понадобится полная картина сложившейся ситуации. Если записать, сколько и кому вы задолжали, намного проще планировать выплаты. Возможно, взглянув на сумму, вы обнаружите, что все не так страшно, как казалось.

С чего начать? 

1. Признайте, что залезли в долги

Прежде чем браться за техническую часть, дайте себе время осознать, что долги есть, но вы хотите с ними распрощаться. Простите себе все необдуманные покупки, просроченные платежи и спонтанные траты. Поначалу будет больно, но через это надо пройти.

2. Составьте контрольную ведомость

Как ни странно, очень немногие ведут учет своей задолженности. Скорее всего, такое легкомыслие объясняется нежеланием испытывать вину, но если не взять себя в руки, выбраться из долговой ямы практически невозможно. Создайте таблицу в Google или Excel и внесите в нее все долги. Придерживайтесь такой системы: имя кредитора, процентная ставка, общий баланс, срок займа (если есть), минимальный платеж. Включите туда кредит на обучение, кредитные карты и прочие обязательные выплаты.

3. Пронумеруйте долги

Когда закончите составлять ведомость, пронумеруйте строки в порядке приоритетности. Это критически необходимо: вы получите четкое представление, с чего начать и в какой последовательности выполнять намеченные шаги.

Как расставить приоритеты? 

Долг долгу рознь. Очень важно понимать, что бывают разные виды финансовых обязательств.

1. Разделите долги на плохие и хорошие

Как правило, плохие долги — это расплата за сиюминутные порывы: мы покупаем потому, что хочется, а не потому, что нужно. Хотя бывают чрезвычайные обстоятельства, когда не обойтись без кредита, но в основном это избыточные расходы. Есть три категории плохих долгов:

• Задолженность по кредитным картам
• Автомобильные кредиты
• Потребительские кредиты

Хорошие долги — это инвестиции в будущее. Они тоже делятся на три категории:

• Кредиты на обучение
• Ипотека
• Ссуды на развитие бизнеса

2. Решите, какой долг закрыть в первую очередь

Рекомендую покончить с плохими долгами, будь то автокредит или кредитная карта. Старайтесь поскорее рассчитаться по займам с самой высокой процентной ставкой. Если кредитных карт несколько, закрывайте ту, по которой снимается наибольший процент. Так вы сэкономите больше денег.

3. Платите сверх минимума

Минимальные платежи загоняют вас в финансовую кабалу, поскольку львиную долю взноса съедают проценты и комиссии. Даже незначительная сумма сверх минимума позволит быстрее выбраться из денежных затруднений.

Долой препятствия и отговорки 

Составить контрольную ведомость и расставить приоритеты нетрудно. Сложнее не поддаваться соблазнам.

1. Установите напоминание

Как говорил Питер Друкер, «можно управлять только тем, что можно измерить». Долги, как и результаты проделанной работы, тоже надо регулярно измерять, Начните с еженедельного напоминания: по сигналу заходите в свою таблицу и сверяйте баланс. Цифры увеличились, уменьшились или остались прежними? Например, регулярный мониторинг кредита на обучение невероятно мотивирует. Отмечая, как уменьшается общая сумма, вы будете все больше гордиться собой. Устанавливайте ежемесячные и еженедельные цели, чтобы видеть достижения и сохранять динамику.

Вы и они: как складываются ваши отношения с деньгами?

2. Спрячьте кредитные карты

Если задолженность по кредиткам стала главной головной болью, срочно избавьтесь от искушения: уберите их из кошелька. Некоторые люди идут на крайние меры и замораживают свои карты. Зачем? Чтобы постепенно отвыкнуть от перерасходов. Кроме того, это возможность подумать, так ли нужна кредитка, и выбросить ее после окончательного расчета.

3. Автоматизируйте все текущие платежи

Сила воли — это здорово, но ее может не хватить. Автоматизируйте все ежемесячные выплаты и живите с чистой совестью.

4. Планируйте заранее

К примеру, если близится день рождения друга или семейное торжество, просчитайте вероятные расходы. Может, придется урезать недельный бюджет, взять подработку, а то и вовсе отказаться от приглашения.

5. Экономьте

Верное средство выбраться из долгов — пожертвовать некоторыми привычками. Подумайте, на чем сэкономить, чтобы направить эти деньги на более важные цели. Вот как можно меньше тратить:

• Снимать жилье вскладчину
• Готовить самому и брать обеды на работу, чтобы не ходить в кафе
• Отказаться от кабельного телевидения и перейти на сериалы
• Ездить общественным транспортом или на велосипеде
• Снизить процентную ставку

Чем выше процентная ставка, тем труднее и дольше выбираться из долгов. Сделайте все возможное, чтобы добиться ее снижения.

1. Поддерживайте высокий кредитный рейтинг

Можно договориться с банком о реструктуризации или рефинансировании задолженности и смягчить условия кредитования. Но учтите, все зависит от кредитной истории: если она испорчена, ничего не выйдет. Поэтому старайтесь повысить свою репутацию плательщика:

• Никогда не допускайте просрочек
• Не превышайте 30% кредитного лимита
• Не заводите больше одной кредитной карты
• Ограничьте запросы: не берите автокредиты и не делайте дорогих покупок в рассрочку
• Отслеживайте кредитную историю через бесплатные онлайн-сервисы

2. Перепроверьте правила пользования картой

Многие банки предусматривают немалый процент при снятии наличных и ничего не берут при расчетах через терминал: разница может быть огромной. Кроме того, очень дорого обходится услуга авансирования: за пользование средствами сверх основного лимита списываются не только проценты, но и солидная комиссия.

В условиях использования кредитных карт часто оговаривается льготный беспроцентный период (от 30 до 55 дней), но если не вернуть деньги вовремя, сумма долга мгновенно возрастает.

Как покончить с долгами навсегда 

Планирование, дисциплина, сокращение расходов — это половина дела. Важно не просто избавиться от долгов, но и никогда не наступать на те же грабли.

1. Контролируйте и корректируйте

Не позволяйте себе расслабляться. Придерживайтесь составленной антикризисной программы и при необходимости вносите изменения. Не забывайте о кредитном рейтинге. Чем выше он поднимается, тем больше вероятность перекредитоваться на более выгодных условиях.

2. Зарабатывайте больше

Деньги можно не только экономить. Вместо того чтобы охотиться за скидками или отказывать себе в чашке утреннего кофе, думайте, как увеличить доходы. Положа руку на сердце, намного проще заработать лишние пару тысяч в месяц, чем выкроить те же пару тысяч из месячного бюджета.

Несколько идей для дополнительного заработка

• Поговорить с руководством об увеличении зарплаты или комиссионного вознаграждения. Если ничего не выйдет, не бойтесь менять работу. Например, некоторые компании возмещают расходы на обучение.
• Поискать подработку. Можно стать репетитором, водителем Uber или проходить платные онлайн-опросы. Есть куча способов заработать деньги в свободное время. Ведь вы решили покончить с долгами, а значит, более чем заинтересованы в дополнительных доходах.
• Создать онлайн-бизнес. Многие сайты и блоги зарабатывают на рекламе, реферальных программах и прочих онлайн-услугах.

3. Празднуйте успехи

Поощряйте себя за нелегкую работу и дисциплину, без которой невозможно расправиться с долгами. Разумеется, речь не о дорогих подарках и развлечениях, иначе вы не сдвинетесь с места. Но маленькие радости необходимы для мотивации.

4. Установите новые финансовые цели

Если у вас есть четкий план выхода из кризиса и вы решительно настроены его выполнить, все получится. Обязательно отпразднуйте окончательную победу над долгами, но на этом не останавливайтесь.

Теперь вы можете облегченно вздохнуть и сосредоточиться на своем благосостоянии. Поставьте новые финансовые цели, чтобы видеть, куда двигаться и к чему прикладывать усилия.

Ура, вы освободились от долгов и наконец-то можете мечтать! Представьте, куда вы хотите поехать, каким будет ваш собственный дом, или откладывайте средства в счет будущей пенсии. Главное, убедитесь, что ваши цели конкретны, измеримы и достижимы.

Если дочитали до этого места, примите поздравления. Осталась самая малость: разработать план быстрого избавления от долгов (лучше всего — раз и навсегда). Но помните: быстро не означает просто. Придется выдерживать ограничения, бороться с сомнениями, преодолевать трудности — как и со всякой большой целью.

^{Об авторе: Майкл Леонард — писатель, блогер, бизнес-коуч.}

Читайте также

90000 11 Ways to Get Out of Debt Faster 90001

90002 We’re a nation in debt. As of late 2017, the average American carried $ 6,354 in credit card debt and more than $ 24,700 in non-mortgage debt such as car loans, according to Experian. The average student loan balance, meanwhile, has hit a record high of $ 34,144. 90003
90002 The fact is, more than half of Americans actually spend more than they earn each month, according to a Pew Research study, and use credit to bridge the gap. So it’s easy to see how so many people are struggling with debt — and why some choose to bury their heads in the sand.For many in debt, the reality of owing so much money is too much to face — so they simply choose not to. 90003
90002 But sometimes, disaster strikes and people are forced to confront their circumstances head-on. A series of unfortunate events — a sudden job loss, an unexpected (and expensive) home repair, or a serious illness — can knock one’s finances so off track they can barely keep up with their monthly payments. And it’s in these moments of disaster when we finally realize how precarious our financial situations are.90003
90002 Other times, we just become sick of living paycheck to paycheck, and decide we want a better life — and that’s OK, too. You should not have to confront disaster to decide you do not want to struggle anymore, and that you want a simpler existence. For many people, becoming debt-free the hard way is the best and only way to take control of their lives and their futures. 90003
90010 How to Get Out of Debt Faster 90011
90002 Unfortunately, the space between realizing your debt is out of control and actually getting out of debt can be wrought with hard work and heartache.No matter what kind of debt you’re in, paying it off can take years — or even decades — to get out of debt. 90003
90002 Fortunately, some strategies exist that can make paying off debt faster — and a whole lot less painful. If you’re ready to get out of debt, consider these tried-and-true methods: 90003
90016 1. Pay more than the minimum payment. 90017
90002 If you carry the average credit card balance of $ 15,609, pay a typical 15% APR, and make the minimum monthly payment of $ 625, it will take you 13.5 years to pay it off. And that’s only if you do not 90019 add 90020 to the balance in the meantime, which can be a challenge on its own. 90003
90002 Whether you’re carrying credit card debt, personal loans, or student loans, one of the best ways to pay them down sooner is to make more than the minimum monthly payment. Doing so will not only help you save on interest throughout the life of your loan, but it will also speed up the payoff process. To avoid any headaches, make sure your loan does not charge any prepayment penalties before you get started.90003
90002 If you need a nudge in this direction, you can enlist the help of some free online and mobile debt repayment tools, too, like Tally, Unbury.Me, or ReadyForZero, all of which can help you chart and track your progress as you pay down balances. 90003
90016 2. Try the debt snowball method. 90017
90002 If you’re in the mood to pay more than the minimum monthly payments on your credit cards and other debts, consider using the debt snowball method to speed up the process even more and build momentum.90003
90002 As a first step, you’ll want to list all of the debts you owe from smallest to largest. Throw all of your excess funds at the smallest balance, while making the minimum payments on all your larger loans. Once the smallest balance is paid off, start putting that extra money toward the next smallest debt until you pay that one off, and so on. 90003
90002 Over time, your small balances should disappear one by one, freeing up more dollars to throw at your larger debts and loans. This «snowball effect» allows you to pay down smaller balances first — logging a few «wins» for the psychological effect — while letting you save the largest loans for last.Ultimately, the goal is snowballing all of your extra dollars toward your debts until they’re demolished — and you’re finally debt-free. 90003
90016 3. Pick up a side hustle. 90017
90002 Attacking your debts with the debt snowball method will speed up the process, but earning more money can amplify your efforts even further. Nearly everyone has a talent or skill they can monetize, whether it’s babysitting, mowing yards, cleaning houses, or becoming a virtual assistant. 90003
90002 With sites like TaskRabbit and Upwork.com, nearly anyone can find some way to earn extra money on the side. The key is taking any extra money you earn and using it to pay off loans right away. 90003

90016 4. Create (and live with) a bare-bones budget. 90017
90002 If you really want to pay down debt faster, you’ll need to cut your expenses as much as you can. One tool you can create and use is a bare-bones budget. With this strategy, you’ll cut your expenses as low as they can go and live on as little as possible for as long as you can.90003
90002 A bare-bones budget will look different for everyone, but it should be devoid of any «extras» like going out to eat, cable television, or unnecessary spending. While you’re living on a strict budget, you should be able to pay considerably more toward your debts. 90003
90002 Remember, bare-bones budgets are only meant to be temporary. Once you’re out of debt — or a lot closer to your goal — you can start adding discretionary spending back into your monthly plan. 90003
90016 5. Sell everything you do not need.90017
90002 If you’re looking for a way to drum up some cash quickly, it might pay to take stock of your belongings first. Most of us have stuff lying around that we rarely use and could live without if we really needed to. Why not sell your extra stuff and use the funds to pay down your debts? 90003
90002 If you live in a neighborhood that permits it, a good old-fashioned garage sale is normally the cheapest and easiest way to unload your unwanted belongings for a profit. Otherwise, you can consider selling your items through a consignment shop, one of the many online resellers out there, or a Facebook yard sale group.90003
90016 6. Get a seasonal, part-time job. 90017
90002 With the holidays coming up, local retailers are on the lookout for flexible, seasonal workers who can keep their stores operational during the busy, festive season. If you’re willing and able, you could pick up one of these part-time jobs and earn some extra cash to use toward your debts. 90003
90002 Even outside of the holidays, plenty of seasonal jobs may be available. Springtime brings the need for seasonal greenhouse workers and farm jobs, while summer calls for tour operators and all types of outdoor, temporary workers from lifeguards to landscapers.Fall brings seasonal work for haunted house attractions, pumpkin patches, and fall harvest. 90003
90002 The bottom line: No matter what season it is, a temporary job without a long-term commitment could be within reach. 90003
90016 7. Ask for lower interest rates on your credit cards — and negotiate other bills. 90017
90002 If your credit card interest rates are so high it feels almost impossible to make headway on your balances, it’s worth calling your card issuer to negotiate. Believe it or not, asking for lower interest rates is actually quite commonplace.And if you have a solid history of paying your bills on time, there’s a good possibility of getting a lower interest rate. 90003
90002 Beyond credit card interest, several other types of bills can usually be negotiated down or eliminated as well — we highlighted them in Six Bills You Can Negotiate Down to Save Money. Always remember, the worst anyone can say is no. And the less you pay for your fixed expenses, the more money you can throw at your debts. 90003
90002 If you’re not the negotiating type, a service like TrueBill can help.The app will review your purchase history to find forgotten subscriptions and other repeating fees you might want to cut from your budget, and it can even negotiate some bills down for you. 90069 90003

90016 Check Your Personal Loan Rates 90017
90002
Answer a few questions to see which personal loans you pre-qualify for. It’s quick and easy, and it 90074 will not impact your credit score 90075.
90003

90016 Check Your Personal Loan Rates 90017
90002
Answer a few questions to see which personal loans you pre-qualify for.The process is quick and easy, and it 90074 will not impact your credit score 90075.
90003

90016 8. Consider a balance transfer. 90017
90002 If your credit card company will not budge on interest rates, it may be worth looking into a balance transfer. With some balance transfer offers, you can secure 0% intro APR for up to 18 months, although you might need to pay a balance transfer fee for the privilege. 90003
90002 If you have a credit card balance you could feasibly pay off during that time frame, transferring the balance to a card could save you money on interest while simultaneously helping you pay down debt faster.90003
90002 90003

90016 9. Use ‘found money’ to pay off balances. 90017
90002 Most people come across some type of «found money» throughout the year. Maybe you get an annual raise, an inheritance, or bonus at work. Or maybe you count on a big, fat tax refund every spring. Whatever type of «found money» it is, it could go a long way toward helping you become debt-free. 90003
90002 Each time you come across any unusual sources of income, you can use those dollars to pay off a big chunk of debt.If you’re doing the debt snowball method, use the money to pay down your smallest balance. And if you’re left with only big balances, you can use those dollars to take a huge chunk out of whatever’s left. 90003
90016 10. Drop expensive habits. 90017
90002 If you’re in debt and consistently coming up short each month, evaluating your habits might be the best idea yet. No matter what, it makes sense to look at the small ways you’re spending money daily. That way, you can evaluate whether those purchases are worth it — and come up with ways to minimize them or get rid of them.90003
90002 If your expensive habit is smoking or drinking, that’s an easy one — 90019 quit 90020. Alcohol and tobacco do nothing for you except stand between you and your long-term goals. If your expensive habit is slightly less incendiary — like a daily latte, restaurant lunches during work hours, or fast food — the best plan of attack is usually cutting way down with the goal of eliminating these behaviors or replacing them with something less expensive. 90003
90016 11. Step away from the _____.90017
90002 We’re all tempted by something. For many, it might be the local mall or our favorite online store. For others, it might be driving by a favorite restaurant and wishing we could pop inside for a favorite meal. And for those with a penchant for spending, having a credit card in their wallet is too much temptation to bear. 90003
90002 Whatever your biggest temptation is, it’s best to avoid it altogether when you’re paying down debt. When you’re constantly tempted to spend, it can be difficult to avoid new debts, let alone pay off old ones.90003
90002 So, avoid temptation wherever you can, even if that means taking a different way home, avoiding the Internet, or keeping the fridge stocked so you are not tempted to splurge. And if you must, stash those credit cards away in a sock drawer for the time being. You can always bring them back out once you’re debt-free. 90003
90010 The Bottom Line 90011
90002 It’s easy to continue living in debt if you never have to face the reality of your situation. But when disaster strikes, you can gain a brand new outlook in a hurry.It’s also easy to get sick of the paycheck-to-paycheck lifestyle, and look for ways to get out from under the crushing weight of too many monthly payments. 90003
90002 No matter what type of debt you’re in — whether it’s credit card debt, student loan debt, car loans, or something else — it’s important to know there 90019 is 90020 a way out. It may not happen overnight, but a debt-free future could be yours if you create a plan — and stick with it long enough. 90003
90002 No matter what that plan is, any one of these strategies can help you get out of debt faster.And the faster you become debt-free, the quicker you can start living the life you truly want. 90003
90002 90019 90074 What are some strategies you have used to pay down debt quickly? Have you ever tried anything on this list? 90075 90020 90003

90002 Editorial Note: Compensation does not influence our recommendations. However, we may earn a commission on sales from the companies featured in this post. To view a list of partners, click here. Opinions expressed here are the author’s alone, and have not been reviewed, approved or otherwise endorsed by our advertisers.Reasonable efforts are made to present accurate info, however all information is presented without warranty. Consult our advertiser’s page for terms & conditions. 90003

.90000 25 Ways to Get Out of Debt 90001
90002 Paying off debt can be frustrating and confusing if you do not have the right plan. For more than 25 years, Dave Ramsey has taught people a step-by-step approach to slashing their debt called the 7 Baby Steps. 90003

90002 On Baby Step 1, you save $ 1,000 in a starter emergency fund, and on Baby Step 2, you pay off all your debt (except the house) using a method called the debt snowball. 90003

90006 How to Pay Off Debt: The Debt Snowball Method 90007

90008
90009 List your debts from smallest to largest regardless of interest rate.90010
90009 Attack the smallest debt with a vengeance while making minimum payments on the rest of your debts. 90010
90009 Repeat this method as you plow your way through debt. 90010
90015

90002 Look, Baby Step 2 takes a few months to finish for some people and a few years for others. So if you’re on this step and laser focused on paying off that last debt, it’s possible the grind is starting to become. . . well, a grind. Maybe you’re exhausted and feel like it’s going to take forever to become debt-free.Hold that thought, because we’re here to give you our top 25 ways to get out of debt so you can be debt-free even sooner. 90003

90006 How to Get Out of Debt With Frugal Living and Smart Shopping 90007

90020 90021 1. Start couponing. 90022 90023

90002 You’ve probably heard this a thousand times-but are you doing it? You can save a ton of money just by showing a coupon to the cashier. Just be sure you’re using coupons for products you already buy, otherwise you could end up overspending on items you’ll never even use.That’s how you end up with 10 bottles of spicy mustard sitting in your pantry. 90003

90020 90021 2. Try consignment shopping. 90022 90023

90002 Kids grow out of clothes at the speed of light (or so it seems). And let’s be real: It’s not worth it to go into debt for your 2-year-old’s ever-changing wardrobe. Check out your local consignment stores that sell pre-loved outfits in good condition. If you’d rather shop online, no problem. Sites like thredUP and Swap.com are great resources to get adult and children’s clothing at a fraction of the cost.90003

90020 90021 3. Cut the cable. 90022 90023

90002 Welcome to this millennium, where you can watch most of your favorite shows online. If you have not cut the cord yet, do it! Put that $ 100 cable bill toward your debt each month and watch just how quickly your debt snowball starts rolling. 90003

90020 90021 4. Stop going out to eat. 90022 90023

90002 We get it. Going to a restaurant or hitting up the drive-thru is so much easier than making meals at home. But while you’re enjoying the freedom of not having to cook for those picky eaters, you’re spending way more eating out than you would by eating in.Want a creative way to socialize and share a meal? Invite friends over for taco night instead of meeting up at a restaurant. And hey-if you want to splurge for guac, we’re not judging. 90003

90020 90021 5. Break up with your barista. 90022 90023

90002 If you do not know where all your money’s going each month, we’re pretty sure your favorite coffee shop can find it for you. Brewing your own coffee at home is a simple way to save money fast. 90003

90020 90021 6. Visit the library.90022 90023

90002 Remember libraries? They have plenty of books and movies you can check out-for free! Your wallet has never loved movie night more than it does now. 90003

90020 90021 7. Plan your grocery trips. 90022 90023

90002 Make a list and stick to it! Use the calculator app on your phone while you browse the aisles to make sure you’re sticking to your budget. Do impulse items always end up in your cart? Try ordering your groceries online and then picking them up curbside at the store.Oh, and do not ever shop on an empty stomach! 90003

90020 90021 8. Avoid expensive hobbies. 90022 90023

90002 Do you really have $ 200 a month to spend on golf? Are you serious? But it’s not just the golfers out there who need to rethink their club dues. Do you spend a ton at craft stores but never get around to starting your project? Home improvement stores can also cost you several Benjamins in one visit. 90003

90020 90021 9. Ditch the gym membership. 90022 90023

90002 You can still go for a run outside-for free.Gather some friends and start a running club. Or do those fancy HIIT workouts at your local park. Listen, it’s a free country. Well. . . mostly. 90003

90020 90021 10. Find free entertainment. 90022 90023

90002 Put a spending freeze on your entertainment costs for a little while. This means no going out to the movies, concerts, mini golf, bowling or whatever you do for fun that costs money. Instead, challenge yourself to find free ways to stay entertained. Take the kids to the park, go for a walk or a hike, enjoy a free concert, or look for a free event in your community.90003

90006 Dave Ramsey’s Basic Tips for Getting Out of Debt 90007

90020 90021 11. Start a side gig. 90022 90023

90002 Starting your own business has never been easier! Do you have a knack for making things? Sell ​​your products online. Are you an animal lover? Take up dog walking or pet sitting. Do you have a good eye and a nice camera? Start taking on clients for photo sessions. Christy Wright’s Business Boutique is a great resource to show you how you can turn that hobby into a serious money-making machine! 90003

90020 90021 12.Get a part-time job. 90022 90023

90002 Not into starting your own business? Then consider becoming a driver for Lyft or Uber. A pizza delivery job at night could also bring in extra money. You can even deliver other types of food in your spare time by working for places like Uber Eats or Grubhub. Sure, you’ll have to put aside your pride and give up some nights and weekends of downtime. But that’s a small sacrifice for extra cash in your pocket. 90003

90020 90021 13. Sell the car! 90022 90023

90002 The average monthly payment for a new car is $ 554.90099 1 90100 That’s just outrageous! Think about how much faster your debt snowball could move if you threw that $ 550 at it every single month. 90003

90020 90021 14. Cut up your credit cards. 90022 90023

90002 Shred ’em. Burn ’em. Shoot ’em. You’ll never get out of debt until you stop making debt a way of life. 90003

90020 90021 15. Use the envelope system. 90022 90023

90002 When you pay with cash, you actually 90113 feel 90114 your money leaving your hands.Ouch! Nobody likes that. People tend to spend less when paying in cold, hard cash. With the envelope system, you’ll see that cash going down so you can keep track of how much you’re spending. 90003

90020 90021 16. Stop investing. 90022 90023

90002 Yep, you read that right. And yes, we even mean stop contributing to your 401 (k). Right now, you want all your income to go toward getting out of debt. Once you’re debt-free and have saved three to six months of expenses in an emergency fund, then you can resume your contributions.By then you’ll be on Baby Step 4 and can start putting 15% of your income toward retirement. 90003

90020 90021 17. Ignore your broke friends. 90022 90023

90002 Stop trying to keep up with the Joneses! Remember, you’re living like no one else now so that later you can live and give like no one else. In 20 years, you will not have a financial worry in the world while everyone else will still have car loans, mortgages and credit card bills. 90003

90020 90021 18. Make a budget! 90022 90023

90002 Budgeting should be easy and-dare we say it-fun! Use our free budgeting app, EveryDollar, and focus your money on what matters: day-to-day spending, those pesky debts and wealth building.90003

90020 90021 19. Tell the kids you’re on a budget. 90022 90023

90002 When it comes to money, the kids can be a worse guide than your stomach. Be open with them about what you 90113 do 90114 and 90113 do not 90114 have room for in the budget. And remember: Never be afraid to use that magic word 90113 no 90114. 90003

90020 90021 20. Listen to 90113 The Dave Ramsey Show 90114. 90022 90023

90002 Listening to the show will encourage you when you feel like you are not making progress.Every day, Dave helps millions of people across the country find hope and make a plan for their money. Their successes will inspire you to keep moving forward. 90003

90006 Other Creative Ideas to Get Out of Debt 90007

90020 90021 21. Ask for a raise. 90022 90023

90002 What do you have to lose? Michael Jordan always says, «You miss 100% of the shots you do not take.» Thanks, Mike. 90003

90020 90021 22. Learn to say no. 90022 90023

90002 Make it a new part of your vocabulary.Love it. Embrace it. Because when it comes to spending money, you’ll be saying it quite often. 90003

90020 90021 23. Sell items on Facebook Marketplace or Craigslist. 90022 90023

90002 One person’s trash is another person’s treasure. Dig through your kids ‘rooms and the abyss of your closet to find things you can part with to make some quick cash. 90003

90020 90021 24. Give more. 90022 90023

90002 Wait a minute-give? Yes! Giving changes you. It changes your spirit.Make giving a priority in your budget, no matter what your income is, and you’ll feel like a million bucks. 90003

90020 90021 25. Take control of your money with 90113 Financial Peace University 90114. 90022 90023

90002 90113 Financial Peace University 90114 is 90113 the 90114 proven plan that will get you out of the cycle of living paycheck to paycheck. Financial Peace is the membership that will teach you how to pay off debt, budget, save big, and give like no one else.And right now, you can try it free with a 14-day trial! You’ll get all nine video lessons that break down the proven plan-the 7 Baby Steps, plus other awesome tools and resources to help you get your money on the right track 90113 right now 90114! 90003

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90002 But if you’ve already had the opportunity to go through the class, maybe it’s time to lead others through it. It’s one of the best ways to stay gazelle intense (and keep yourself accountable).Take it from us: Watching others change their lives feels pretty darn good. 90003

90002 There you have it-25 ways to get out of debt and breathe fresh air into your debt-free journey. Try a few of these tips and see if they work for you. When you hit a wall and feel like you’ll never figure out how to get out of debt, just keep working the plan! Over time, your dedication will pay off! 90003

.90000 How To Get Out of Debt: Ultimate Guide to Being Debt Free 90001 90002 Falling into a cycle of debt is easy. Getting out of debt is another matter altogether. 90003 90002 If you’re overwhelmed with debt, you are not alone. The latest data by the Federal Reserve shows the steepest increase in household debt since the Great Recession. Overall household debt hit $ 14.3 trillion. That is $ 1.6 trillion more than the previous peak in 2008, and 28% more than our last «debt trough» in 2013. Those figures are not going to get any better after the 36 million jobs lost in the last five weeks.90003 90002 It’s no wonder getting out of debt was the number one new year resolution in 2020. 90003 90002 Are you struggling with debt? This two-stage guide will help you determine which debt-busting strategies are most likely to work for you and how to implement them in a personalized get-out-of-debt plan. 90003 90010 Compare Shared Equity Agreements 90011 90002 Compare terms and requirements. Find your best option. 90003 90010 Stage 1 — Determine what strategies will work for you 90011 90002 The first stage is designed to help you take stock of your financial situation to determine which debt-payment strategies are the best fit for you.It is an interactive guide, so you will need to put in some work to get anything out of it. In the second stage, we discuss in more detail how these strategies work, and how you could combine them in your own get-out-of-debt plan. 90003 90002 Getting out debt is not rocket science. You just need to understand the pros and cons of each strategy, consider some basic guidelines, and apply them to your specific financial circumstances. 90003 90020 What debt repayment strategies are there? 90021 90002 Here are the seven debt-busting strategies to consider.90003 90024 90025 90026 Avalanche method. 90027 Pay the minimum on all your accounts and as much as you can on the account with the highest interest rate. Continue until all the accounts are repaid. This is the best method to minimize interest payments. 90028 90025 90026 Snowball method. 90027 Pay the minimum on all your accounts and as much as you can on your smallest account. Rinse and repeat until all debts are paid. Some people find it easier to stick to this method because it provides more frequent small wins that act as psychological boosts every time you pay off an account.90028 90025 90026 0% APR balance transfer credit card. 90027 These cards offer a 0% APR during an introductory period that typically ranges from 9 to 18 months. After that, interest rates will usually rise to 20% or higher. If you can repay it within the introductory period, this is probably the cheapest way to get out of debt. 90028 90025 90026 Debt management program. 90027 These are repayment plans set up and managed by a credit counseling agency. There are fees to pay, but it can be a good option for people who are not great at budgeting or managing payments.90028 90025 90026 Debt consolidation. 90027 A loan or line of credit that allows you to combine high-interest debts into one low-interest payment. It can save you money in interest payments, but it may promote overspending if you’re not good at managing credit. There are unsecured debt consolidation loans, such as personal loans, and secured ones, such as home equity lines of credit and home equity loans. 90028 90025 90026 Shared equity agreements. 90027 This is a new option available to homeowners that allows you to tap into your home’s equity to pay off debt, without taking on more debt.There are no monthly payments and no interest rates. Instead, you agree to give investors a share in the equity of your home when you sell it or when the contract ends. 90028 90025 90026 Debt settlement. 90027 A negotiated agreement in which a lender accepts less than the full amount owed in exchange for a lump-sum payment. It can cut your debt in half, but it will nuke your credit. 90028 90053 90002 You have probably heard about all of these strategies before. But which should you use? There is not a one-size-fits-all answer to that question.90003 90020 You are the expert of your finances 90021 90002 Ignore «experts» who tell you which method is the best without knowing anything about you. The best strategy depends on your circumstances and your priorities. 90003 90002 Answer the following questions to reveal which combination of debt relief strategies is best for you. I recommend you create a basic spreadsheet to record your answers and build your budget. This is a basic spreadsheet you are welcome to copy and modify. 90003 90020 90026 1.How much debt do you have? 90027 90021 90002 This question is as basic as they come, but it’s often the hardest to answer. It takes courage to sit down and work out exactly how much you owe. Create a spreadsheet and list all your debts. If you can not remember all your lines of credit, check your credit report for free here. Once you have all your credit accounts listed, separate them into secured and unsecured debts. 90003 90002 In this guide, we will focus on consumer debt. Consumer debt includes any type of unsecured debt that is not backed by an asset or security, such as credit card debt, personal loans, medical bills, and payday loans.90003 90002 Similar principles will apply to other types of debt, such as mortgages, auto loans, and student loans, but they should be tackled a little differently because there are additional options available. 90003 90002 90026 Why is this important? 90027 If you owe less than $ 15,000 and you have excellent credit, you may be able to consolidate your debt with a 0% APR balance transfer credit card. This can be the best way to get out of debt if you can repay it within 12 to 18 months. A debt consolidation loan is an option for larger amounts and for when a balance transfer card is not available.90003 90020 90026 2. What is your income? 90027 90021 90002 Your income is your most powerful debt-busting tool. You need to know if it’s up to the task. If your income varies significantly from month to month, estimate it based on your average income for the last two years. 90003 90002 90026 Why is this important? 90027 If you have a low income and no way to increase it, repaying a substantial debt may not be realistic. Getting a second job or an extra shift on your current job is probably the single best thing you can do to get out o debt.If that is not possible or if it does not make much of a dent in your debt-to-income ratio, a debt settlement or even filing for bankruptcy may be your best alternatives. Your income will also determine if you qualify for balance transfer cards or a consolidation loan. 90003 90020 90026 3. What is your debt-to-income ratio? 90027 90021 90002 Divide your total consumer debt by your annual income. For example, let’s say you have $ 30,000 in unsecured debt and a yearly salary of $ 50,000, the result would be 0.6. 90003 90002 90026 Why is this important? 90027 If your total unsecured debt is more than half your annual income, repaying your debt in a reasonable amount of time may not be feasible. Also, creditors often use a debt-to-income ratio of at least 0.5 as a threshold before they consider negotiating a debt settlement. 90003 90020 90026 4. What is your credit score? 90027 90021 90002 Your credit score is a number that represents the risk a lender takes when you borrow money. Higher scores mean you have demonstrated responsible credit behavior in the past, which may make potential lenders and creditors more confident when you apply for a loan.90003 90002 90026 Why is this important? 90027 If you have good credit (above 670), you may qualify for a debt consolidation loan with competitive rates or a 0% APR balance transfer card. On the other hand, if you have bad credit, aggressive debt relief methods, such as a debt settlement, become more attractive. 90003 90020 90026 5. What is your discretionary income? 90027 90021 90002 To answer this question, you will need to create a simple budget that lists all your essential expenses.This spreadsheet has a list of basic expenses with their average cost based on the latest survey by the Bureau of Labor Statistics. Enter your living expenses. Once you finish, deduct your total monthly living expenses (do not include your unsecured debt payments) from your monthly income. This is your discretionary income. 90003 90002 90026 Why is this important? 90027 Your discretionary income is the maximum amount of money you could put toward repaying your debts on your current income. If your discretionary income is low, say $ 500 or less, but your debt-to-income ratio is also low, you probably need to take a hard look at your budget.The odds are you have plenty of fat to trim from your «basic living expenses.» Once you know your discretionary income, you can answer another important question when choosing the best debt repayment method. 90003 90020 90026 6. How long will it (realistically) take you to repay your consumer debt? 90027 90021 90002 A shorthand way to do this is to divide your debt balance by your monthly discretionary income. The result is an extremely optimistic estimate of the time it will take to get out of debt.Of course, few people have the discipline to put all their discretionary income toward debt for any significant amount of time. And this estimate does not include interest payments. However, it gives you a rough estimate. So let’s say you owe $ 30,000, and your discretionary income is $ 500 a month. That means it would take a minimum of 60 months to pay off your debt. 90003 90002 90026 How does this help? 90027 If you can repay your debt in less than five years, consider using the snowball or avalanche method.Borrowers with good credit who can qualify may also want to consider getting a 0% APR balance transfer card if they can repay it within 12 to 18 months. If that is not realistic, a debt consolidation loan can also save money in interest payments. 90003 90002 However, if it’ll take 5 years or more to repay, you will probably struggle to find a debt consolidation loan. Try to increase your income. In cases where that is not an option, it may be time to look at more aggressive debt-relief options, such as a debt settlement or even filing for bankruptcy.90003 90020 90026 7. Are you confident you can follow a debt repayment plan by yourself? 90027 90021 90002 Because we are not robots, we do not always do what we know we should. The math of getting out of debt is simple, but the behavioral side is anything but. Some people enjoy geeking out on their budget and maximizing every dollar they make. If that describes you, you can do this by yourself. Others — which include successful individuals in their fields of interest — struggle with managing money and making payments on time.90003 90002 If you would benefit from some help or thrive when you are held accountable to someone providing you regular feedback, consider hiring a credit counseling agency. They can help you prepare a personalized debt management plan, negotiate lower monthly payments, and create a realistic budget. If you choose a debt management program with lower monthly payments, it will increase the interest you pay, and the time it takes to get out of debt. 90003 90002 Another option is to hire a debt settlement company to negotiate a lower debt balance with your creditors.It could reduce your debt and help you get out of debt faster. But it will destroy your credit. 90003 90010 Which debt repayment method is best for you? 90011 90002 Every single one of the strategies we listed above, (i.e., avalanche, snowball, debt consolidation, debt management program, and debt settlements) could be the best option for you. It all depends on how you answered the questions above. 90003 90002 Here’s a quick summary of some of the guidelines you may want to consider when choosing.90003 90024 90025 90026 Debt levels. 90027 If you owe more than $ 15,000, a balance transfer credit card is not an option. But a debt consolidation loan may help. Borrowers who owe less than $ 15,000 and have excellent credit, should consider a 0% APR balance transfer credit card. But only if they can repay the entire balance within 12 to 18 months. A debt consolidation loan is a good alternative if it will take longer to repay. Either way, the snowball or avalanche methods are great repayment options to use with all your debts (secured and unsecured).90028 90025 90026 Debt-to-income ratio 90027 A ratio that is higher than 0.5 may indicate that you are financially overextended. Creditors use this as a threshold to negotiate a debt settlement. Consider increasing your income. If that is not an option and it will take more than 5 years to pay, a debt settlement may be an option. 90028 90025 90026 Time to get out of debt 90027 Will it take more than 5 years to get out of debt with your current discretionary income? You may need to consider a more aggressive debt relief strategy if you can not increase your income or have poor credit.But if your debt-to-income ratio is low, you can probably tighten your budget and pay it off sooner. However, if you can pay it off in less than 60 months, use the snowball or avalanche methods. You can save money and get out of debt faster if you get a 0% APR balance transfer or a debt consolidation loan. A credit counseling agency can also help if you need help managing your payments and budget. 90028 90025 90026 Credit score. 90027 If you have great credit, a 0% APR balance transfer or a debt consolidation loan can help you save money and get out of debt faster.If your credit score is poor and you are struggling to make payments, consider a debt settlement. 90028 90053 90010 Stage 2 — How to get out of debt 90011 90002 You now have a good idea of ​​which strategies would work best for you. Now it’s time to combine them into a cohesive plan. 90003 90020 Step 1: Take time to get a handle on your financial situation 90021 90002 90169 For many, this is the hardest step in our guide. After all, who has time to sit down and create a budget. Unfortunately, there is no way around it.If you worked through stage 1 of this guide, you already have a good start. 90003 90002 Create a simple spreadsheet with a row for each creditor. Include auto loans, student loans, mortgages, credit cards, and any other source of debt. Include the balance you owe, the interest rate you’re charged, and the monthly payment. If it’s a credit card, include the minimum payment. In the last column, specify whether the debt is secured or unsecured. For example, a mortgage is a secured debt because the bank will take your home if you do not make payments.Credit card debt, on the other hand, is unsecured debt. 90003 90002 The list may look something like this: 90003 90002 Remember that if you’re not sure about the balances in all your accounts, check your credit report. It will have a list of all the creditors that report to the credit reporting bureaus. The balances on your credit report may not be 100% accurate. Once you have a list of creditors, confirm the balances with them. Now you know the extent of your debt and the money you have available to pay it off, you have some serious decisions to make.90003 90002 Although it is possible to do it all by yourself, some people benefit from talking to a professional personal finance counselor at this stage. If you think you could benefit from a better understanding of how to budget, improve your credit, and reduce your debt, consider hiring a credit counseling service, such as Consumer Education Services. Many of the budgeting and personal finance counseling services offered by these companies are free. 90003 90020 Step 2: Consolidate your debt and reduce interest payments 90021 90002 Debt consolidation allows qualified consumers to take out a new loan that pays off most or all their outstanding debt.However, it is not for everyone. Look at the questions in the first stage of this guide to determine if debt consolidation is a good option for you. 90003 90002 The purpose of debt consolidation is to combine all your existing debt from various sources into one loan. 90184 90003 90002 This means that you only have to pay one loan payment a month instead of several smaller loan payments. Ideally, debt consolidation loans should have a lower interest rate than the rates you are currently paying to help you get out of debt.90003 90188 What options are available for debt consolidation? 90189 90002 It boils down to three main options. You can: 90003 90024 90025 Get a personal loan. 90028 90025 Transfer all your other credit card balances to one card. 90028 90025 Apply for a home equity loan or cash-out mortgage refinance. 90028 90053 90188 Personal loans 90189 90002 If your credit is not where it needs to be to get approved for a balance transfer card, consider applying for a personal loan. You will not get any 0% APR offers and the interest rate can be higher than that of a HELOC.But this alternative’s unsecured nature means you’re not risking any collateral. 90003 90002 A couple of things to keep in mind with personal loans: 90003 90024 90025 A lower interest rate is not guaranteed. Depending on your credit, you may not get approved for a loan. And if you do, the APR may even be higher than your credit card’s APR. 90028 90025 Personal loans have a fixed repayment period and fixed monthly payments. Make sure you can afford the payments before accepting a loan. 90028 90053 90212 Consolidating your debt can improve your credit score 90213 90002 Personal loans can also help improve your credit score.How? Well, 10% of your FICO credit score, the score most widely used by lenders, is based on your credit mix. Having a varied credit mix, such as personal loans, mortgage, and credit card accounts, can improve your credit score. Your credit utilization ratio on revolving accounts — your debt as a percentage of your available credit — is also an important factor when calculating your FICO scores. Moving revolving credit debt to a personal loan will lower your credit utilization ratio, which could improve your credit.90003 90002 Purchasing a loan is like buying a used car. Prices vary wildly depending on whether you buy from a private owner or a dealership, as well as on the age, brand, and condition of the vehicle. Personal loans are also a highly competitive business where prices vary by provider. Different personal loans come with different rates, fees and requirements, so check out what the best personal loans are to ensure that you choose the best option for you. 90003 90002 SuperMoney’s loan offer engine makes it easy to compare your options across many different lending partners without affecting your credit score.You can also research product details and company reviews directly on SuperMoney’s personal loan review pages. 90003 90188 Balance transfer credit cards 90189 90002 Consider switching your credit card debt to a 0% APR balance transfer card. If you have $ 15,000 in debt and an average 15% APR, you could save $ 1,940 in interest during just 12 months of 0% APR. Combine a 0% APR balance transfer with an aggressive repayment plan, and you could repay your entire credit card debt in less than a year.90003 90002 Remember, balance transfers are not always free. The APR may be 0%, but APRs do not include balance transfer fees, which can be as high as 5%. There are balance transfer credit cards, such as Slate, that do not charge transfer fees, but these are rare. This does not mean you should not transfer your credit balance. Make sure you take into account these fees when calculating the pros and cons of a balance transfer. 90003 90188 Home equity loans 90189 90002 90229 A home equity line of credit is similar to a credit card in that you have a revolving line of credit that you can use, pay off, and use again.The difference is that most credit cards do not require collateral, while a HELOC uses your home as collateral. 90003 90002 Because of this setup, HELOCs are considered secured debt and have relatively low — and usually variable — interest rates. To illustrate, the average APR for credit cards in 2018 was around 16%. The average APR for a HELOC was about 5%. 90003 90002 The obvious advantage of using a HELOC to pay off credit card debt is that you can consolidate at a lower interest rate, even if you have poor credit.Another reason HELOCs are appealing is that, like your mortgage payments, the interest you pay is tax-deductible. 90003 90002 However, there are serious drawbacks to consider. The worst that can happen if you do not pay your credit is a damaged credit score. If you do not make payments on your HELOC, you could lose your home. 90003 90002 Compare rates from multiple HELOC lenders. Discover your lowest eligible rate. 90003 90188 Refinance secured loans 90189 90002 Refinancing your loans for shorter terms and lower interest rates can save you thousands of dollars and help you pay off your debt faster.90003 90188 Mortgage refinancing 90189 90002 Mortgage debt represents 68% of American households ‘debt. Imagine how much you could save if you lower your housing expenses by refinancing your mortgage. To illustrate, a 1% interest reduction on a 30-year $ 300k mortgage could lower your monthly payments by $ 178 and reduce the total cost of the mortgage by $ 64,000. 90003 90002 If you qualify for a mortgage refinance, consider a cash-out refinance to consolidate and pay off your other debts. 90003 90002 A cash-out refinance involves getting a new loan with a slightly lower interest rate for a larger amount than the existing mortgage loan.As the borrower, you receive the difference between the two loans in cash to use as you please. In this case, you’ll be using the cash to pay off your high-interest debt like credit cards, a car loan, or a personal loan. 90003 90002 For instance, say you own a home valued at $ 250,000 and still owe $ 150,000 on the mortgage. You’ll have built up $ 100,000 in equity. You need an extra $ 25,000 to pay off some credit card debt and a car loan. 90003 90002 You can get a cash-out mortgage refinance with a new loan for $ 175,000 ($ 150,000 loan you’ll still owe on your home via mortgage payments, plus $ 25,000 cash).With this strategy, you can consolidate debt into a home loan and pay it off at a much lower interest rate. 90003 90002 Compare rates and terms from top mortgage refinance lenders now. 90003 90188 Student loan refinancing 90189 90002 The average debt of a four-year college student is $ 26,830, according to the Federal Student Aid Office. For some graduates, that could amount to more than half of their starting salary. 90003 90002 If you’re looking for ways to relieve the burden of your student debt, considering refinancing your student loans.You may qualify for lower interest rates if your student loans are older or if your credit has improved. 90003 90002 Compare the top student loan refinancing lenders to see which one offers the best feature combination for your needs. 90003 90188 Auto loan refinancing 90189 90002 If you decide to refinance your car loan, it can save you money and possibly reduce the length of the loan. SuperMoney’s auto loan offer engine makes it easy to compare the rates and terms of the top auto refinance lenders.90003 90002 Say you owe $ 20,000 on your auto loan at 7% interest, and you’re paying $ 300 per month for the next 85 months, you’ll pay $ 5,401 of interest over the life of the loan. Here are interest reduction scenarios for comparison. Keep in mind-these loan refinancing scenarios are examples and do not include any taxes or extra fees. 90003 90024 90025 Lower your rate to 5% interest and your monthly payments will drop to $ 280, saving you a total of $ 1,702. 90028 90025 Reduce the interest rate to 4% and the monthly payment will be $ 271, saving you a total of $ 2,490.90028 90025 A reduction to 3% interest will lower the monthly payment to $ 261, saving you a total of $ 3,262. 90028 90053 90020 Step 3: Choose the best payment method for you 90021 90002 oAll debt payment methods boil down to two main strategies: the snowball method and the highest rate first or avalanche method. 90003 90188 Pay the highest interest rate first — Avalanche method 90189 90002 This method works by organizing your debts by their interest rate. Identify the account with the highest APR.Make minimum payments on all the other accounts and pay off as much as can toward the account with the highest APR. This method is also called the avalanche method. If you do not qualify for a 0% APR balance transfer card, this is probably the best way to reduce interest payments while getting out of debt. 90003 90188 Snowball Method 90189 90002 The snowball method requires you to pay as much as you can on your smallest debt while making minimum payments on the other ones. Once it’s paid, go on to the next smallest debt until you are debt-free.This method will probably cost you more in interest, but it has the advantage of providing quick wins, which could help you stick with the debt repayment plan. 90003 90020 Snowball vs. avalanche: which debt payment is best? 90021 90002 Let’s use an example to compare both methods. Imagine you have three credit card accounts: 90003 90002 # 1 has a balance of $ 5,000 and a 13% APR 90296 # 2 has a balance of $ 8,000 and a 20% APR 90296 # 3 has a balance of $ 2,000 and a 12% APR 90003 90002 If you can afford to make $ 800 in monthly payments and follow the debt avalanche method (i.e. pay off the account with the highest interest first), you will pay $ 2,226 in interest and be debt-free in 1 year and 11 months. 90003 90002 Use the snowball method (i.e., start with the account with the smallest balance) and you would pay $ 2,786 in interest and take 2 years to be debt-free. In other words, you would pay an additional $ 559 in interest and take a month more to be debt free than those who start with the highest-interest accounts. 90003 90002 Although the debt avalanche method is clearly the rational way to pay off debt, humans are not always that rational.A study by a team of Kellogg School researchers found that people with large credit card balances are more likely to pay down their entire debt when they follow the debt snowball method. As any casino manager will tell you, the lure of small wins is powerful. 90003 90002 Really, it does not matter which method you use, as long as you stick with your payments until you are debt-free. 90003 90020 Step 4: Make more money 90021 90002 90310 Increasing your monthly income will allow you to put more towards repaying your debt.90003 90188 Get a side job 90189 90002 If you’re trying to get out of debt and have cut as many expenses as possible, it may be time to supplement your income. Thanks to today’s gig economy, it’s easier than ever to find «moonlighting» jobs that allow you to increase your income quickly. 90003 90002 If you want to earn some extra money pronto, consider one or more of the following side jobs. 90003 90188 Sell stuff 90189 90002 Admit it. You have way too much junk. The average household has $ 1,000 to $ 2,000 of potential cash in stuff they no longer use.Empty that basement. Reclaim your garage. Get rid of that storage unit. 90003 90020 Step 5: Desperate measures to get out of debt 90021 90002 But what if your financial situation is so bad no amount of budgeting, consolidating, refinancing, or extra gigs will make a dent in your debt? In most cases, the tools mentioned above are enough for a determined person to get out of debt. However, there is not always a way to get out of debt without help. In such cases, there are two tools to consider: debt settlement and bankruptcy.To find out if your situation warrants these such aggressive debt relief strategies work through the questions in stage 1 of this guide. 90003 90188 How does debt settlement work? 90189 90002 A debt settlement is an agreement between borrowers and lenders to make a lump-sum payment instead of the full amount owed. It is one of the most aggressive and effective debt resolution methods available. However, it is not a debt relief method you should take on lightly. Debt settlement will probably damage your credit score and force you to deal with debt collection agencies.It is a last-ditch resort that forces lenders to decide between forgiving a chunk of your debt or getting nothing at all. 90003 90188 Why would lenders consider forgiving part of your debt? 90189 90002 The threat of bankruptcy is what brings many creditors to the table. Lenders know that personal bankruptcy can discharge unsecured debt and prefer to get something than to be left standing with worthless promissory notes. If you can convince your lenders you can not afford to pay your debt in full, they may agree to a discounted payment instead.How much of a discount are lenders willing to give? It all depends on your negotiating skills and your financial situation. You should also be aware some of your creditors may refuse to work with the debt settlement company that you choose. 90003 90188 When should you consider a debt settlement? 90189 90002 As we mentioned above, there are no hard rules about when you should pursue debt settlement, but these are some useful guidelines we discussed above that are worth remembering. 90003 90002 You may want to consider a debt settlement if: 90003 90024 90025 You debt-to-income ratio is higher than 0.5. In other words, if your unsecured debt is 50% or more of your annual income. 90028 90025 If it will take more than 5 years to repay your debts with your current discretionary income and you can’t increase your income or further reduce your living expenses significantly. 90028 90053 90002 Here are a couple of things to consider when looking for a debt settlement company. 90003 90188 Do they have minimum and maximum limits on the amount of debt you can enroll? 90189 90002 Most companies require you to have a minimum amount of debt, which is usually around $ 10,000.Some lenders, such as Freedom Debt Relief, accept lower amounts. Other companies also have a maximum amount of debt you can enroll, such as $ 100,000. You will need to find a company with requirements that match your needs. 90003 90188 What is their customer service like? 90189 90002 We typically do not care about the customer service of a company until we run into problems or have questions. It is important to find out ahead of time about the level and quality of support provided by a company. You can do so by researching the support channels they offer (phone, email, live chat, etc.) And by reading reviews from past customers. Look for companies like Debtmerica Relief and Rescue One Financial, which are recommended by our community of users. Other debt settlement firms to consider are Pacific Debt and National Debt Relief. 90003 90002 This guide will help you decide whether debt settlement is a smart option for you. 90003 90020 How does bankruptcy work? 90021 90002 Bankruptcy is a legal process by which individuals and businesses can eliminate or repay debts under the protection of the federal bankruptcy court.There are two types of bankruptcies: liquidation and reorganization. 90003 90002 Chapter 7 is the classic liquidation bankruptcy. As its name implies, it requires debtors to liquidate or sell their property to pay some of their debt. However, some types of property are protected by state and federal bankruptcy laws. In certain cases, debtors may have little to pay once state exceptions (i.e., protected property) are applied. 90003 90002 Chapter 13 is the most common reorganization bankruptcy. With this type of bankruptcy, debtors get to keep all, or most, of their property.However, unsecured debt is not always discharged. Instead, it is reorganized into affordable payments. If a debtor completes the repayment plan (three to five years of monthly payments), pending unsecured debt is discharged. The catch is unsecured debt is generally not discharged until debtors complete the three to five years repayment plan. However, the completion rates of Chapter 13 bankruptcies are extremely low. Only a third of debtors complete the repayment plan. 90003 90002 This guide teaches you everything you need to know before you decide about bankruptcy before you make up your mind.90003 90010 Getting out of debt guide for servicemembers 90011 90002 It is particularly important for members of the military to keep their finances in order because failing to do so could hurt their career. For instance, if you have a bad credit history, you could lose your security clearance or not qualify for a promotion (source). The unique challenges of military life can make it particularly difficult for servicemembers to manage their personal finances during their time in the service. Federal and state legislatures acknowledge this by providing special protections to active duty military members.90003 90002 If you are an active-duty servicemember and you’re struggling with debt, follow the steps set out above. They apply to both servicemembers and civilians. However, you should also take into account the following laws before you make any important decisions. They provide special protections that could save you a lot of money. 90003 90020 The Servicemembers Civil Relief Act (SCRA) and debt 90021 90002 The SCRA offers extra protections to servicemembers facing financial difficulties during uniformed service.Here is a summary of the key protections included in the Servicemembers Civil Relief Act: 90003 90188 1: You can reduce the interest rate of any pre-service loan to a maximum of 6% 90189 90002 You just need to notify your lender in writing. Include a copy of your active duty service orders or a letter from your commanding officer with the date you start active duty service. If you qualify, this is an excellent opportunity to reduce your interest payments and focus on paying off your debt while you’re away.90003 90188 2: Servicemembers receive additional protections against default judgments in civil cases 90189 90002 For example, if you are being sued in a civil action, courts can issue a default judgment against you if you fail to appear. If you are an active-duty servicemember, courts can not issue a default judgment before it appoints an attorney to represent you. 90003 90188 3: Protection from foreclosure 90189 90002 Servicemembers can not be foreclosed without a court order, as long as they took out the mortgage before entering active duty service.Upon request from the servicemember, courts are required to pause or stay a foreclosure if the active duty service is affecting the homeowner’s ability to pay the mortgage. 90003 90188 4: SCRA prohibits creditors from repossessing your personal property 90189 90002 This protection would prevent lenders from repossessing the property, such as a car, a boat, or a TV if it was purchased or leased before entering active duty service. The protection also applies if the servicemember made a deposit or installment payment on the item before leaving for active service.90003 90188 5: Servicemembers have the right to terminate residential and vehicle leases without penalty 90189 90002 If you receive deployment orders or a Permanent Change of Station (PCS) for at least 90 days, you can terminate a housing lease without penalty. If the deployment is for longer than 180 days, you may also be able to terminate a vehicle lease without penalty. 90003 90020 The Miltary Lending Act and your debt 90021 90002 The MLA is a federal law that provides special financial protection to borrowers who are active-duty servicemembers (source).These protections include: 90003 90188 A 36% interest cap 90189 90002 The Military Lending Act sets a maximum Military Annual Percentage Rate of 36%. The MAPR is similar to a regular annual percentage rate but with more restrictions on the fees that must be included in the rate. This cap applies to most loans, including payday loans, tax refund loans, auto title loans, unsecured personal loans, and lines of credit 90003 90188 No mandatory allotments 90189 90002 Lenders can not require a servicemember to set up a voluntary military allotment to pay for a loan.90003 90188 No prepayment penalty fees 90189 90002 Creditors can not charge a penalty for paying a loan or part of the loan early. 90003 90188 No mandatory waivers of legal rights 90189 90002 Lenders can not require borrowers to accept mandatory arbitration or give up their Servicemembers Civil Relief Act protections. 90003 90010 What’s next? 90011 90002 To get out of debt is only the beginning. Once you’re free of debt, it’s time to save and invest in your future. If you’re like most people, the final goal is to be financially independent and retire early.90003 90002 Read our investment guide and start working toward financial independence today. 90003 90424 90002 Andrew is the managing editor for SuperMoney and a certified personal finance counselor. He loves to geek out on financial data and translate it into actionable insights everyone can understand. His work is often cited by major publications and institutions, such as Forbes, U.S. News, Fox Business, SFGate, Realtor, Deloitte, and Business Insider. 90003 90002 Last updated 90428 05/22/2020 90429 by Supermoney 90003.90000 How to Get Out of Debt With the Debt Snowball Plan 90001
90002 What could you do if you did not have a single debt payment in the world? That’s right-no student loans, car payments or credit card bills! For some of you, that would free up an extra $ 300, $ 500, or maybe even $ 800 a month. Ah, that’s the debt-free life. 90003

90002 The quickest way to make your debt-free dream a reality is to use the debt snowball method. 90003

90006 What Is the Debt Snowball Method? 90007

90002 The debt snowball method is a debt reduction strategy in which you pay off bills in order of smallest to largest, regardless of interest rate.90003

90002 But it’s more than a method for paying off bills. The debt snowball is designed to help you change how you behave with money so you never go into debt again. It forces you to stay intentional about paying one bill at a time until you’re debt-free. And it gives you power over your debt. When you pay off that first bill and move on to the next, you’ll see that 90011 debt is not the boss of your money. You are. 90012 90003

90002 This is how the debt snowball method works.. . 90003

90002 90011 Step 1: 90012 List your debts from smallest to largest. 90003

90002 Take control of your money with a FREE trial of Ramsey +. 90003

90002 90023 90011 Step 2: 90012 Make minimum payments on all debts except the smallest-throwing as much money as you can at that one. Once that debt is gone, take its payment and apply it to the next smallest debt while continuing to make minimum payments on the rest. 90003

90002 90023 90011 Step 3: 90012 Repeat this method as you plow your way through debt.The more you pay off, the more your freed-up money grows-like a snowball rolling downhill. 90003

90006 90023 The Fastest Way to Get Out of Debt 90007

90002 Sure, it might appear that paying off the debt with the highest interest rate first makes the most sense-mathematically. Would not that save you the most money? 90003

90002 Yes 90038 and 90039 no. If you begin with the biggest debt, you will not see traction for a long time. You might think you’re not making fast enough progress and then lose steam and quit before you even get close to finishing.90011 It’s important to pay your debts in a way that keeps you motivated until you’ve wiped them out. 90012 Getting quick wins in the beginning will light a fire under you to pay off your remaining debts! Listen-knock out that smallest debt first, and you will find the motivation to go the distance. 90003

90043
90002 Great personal finances do not happen by chance. 90023 They happen by choice. 90003

90047

90006 What Should I Include in My Debt Snowball? 90007

90002 Now you’re thinking like a money pro.Your debt snowball should include all non-mortgage debt-debt being defined as anything you owe to anyone else. (Though your mortgage is technically debt, we do not include it in the debt snowball.) 90003

90002 Examples of non-mortgage debt: 90003

90054
90055 Payday loans 90056
90055 Student loans 90056
90055 Medical bills 90056
90055 Car notes 90056
90055 Credit card balances 90056
90055 Home equity loans 90056
90055 Personal loans 90056
90069

90002 And by the way, there’s no such thing as good debt.Take student loans, for example. Many consider student loans worthwhile debt, but the truth is, they hurt your finances in the long run. 90003

90002 The average student loan debt per student is about $ 37,000. 90073 (1) 90074 And the grand total of outstanding student loan debt has reached $ 1.41 trillion. 90073 (2) 90074 Student loans are a huge roadblock to the financial success of young adults. 90003

90002 Think about it. Student loan repayment can seriously delay a person’s ability to buy a home, save money, and invest for the future.Bottom line: 90038 No 90039 debt is good debt. 90003

90043
90002 Listen Now: What’s the Reason for the Debt Snowball? 90003

90047

90006 When Am I Ready to Start the Debt Snowball? 90007

90002 You’re ready to begin your debt snowball once you’ve saved your $ 1,000 starter emergency fund. That’s what we call Baby Step 1. An emergency fund covers those life events you can not plan for. Think busted hot water heater, dental emergency or flat tire. You get the drift. An emergency fund protects you from having to go further into debt to pay for an unexpected expense.90003

90002 So with that said, you’ll start your debt snowball on Baby Step 2. That means you’re current on all your bills and have completed Baby Step 1. 90003

90043
90002 New to the Baby Steps? Check out this overview. 90003

90047

90006 How Do I Start My Debt Snowball? 90007

90002 Organizing your debt snowball is simple. Start listing out all your nonmortgage debt in order of smallest to largest. (If you’re married, work on this together.) From there, follow the guidelines we just covered and tackle the smallest debt first.Move to the next smallest and the next and the next until you’re debt-free. 90003

90002 If you’re ready to crush debt and build wealth for the future, it’s time to start the proven money plan called Financial Peace. You’ll get all the tools and info you need to take control of your money. For real. For good. And right now, you can try it all with a 90038 free 90039 trial of Financial Peace. 90003

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