In 2017, a survey showed that the average American carried more than $6,300 in credit card debt. Americans also have an average of $25,000 in non-mortgage debt such as car loans. Student loans are hitting an all-time high of $34,144. Everything is on the upswing. As a result, and also because of the high standard of living, Americans are spending more than they’re earning in a month. That puts them into huge debts they couldn’t even get out of. They work to pay debts.
Although a bankruptcy lawyer in Salt Lake City can help alleviate the suffering of having to pay your debts, keep in mind that you can still do something about your debts. You can still start to pay them off and finish in a couple of years. You can still realign your financial goals so that you can pay off your debts, save for emergencies, and invest for the future.
You don’t need to take drastic measures just yet. Well, that depends on how much you owe credit card companies, banks, the government, and other financial institutions. It’s still worth it to see what you can do to get out of debt fast.
Get a Side Job
The reason you’re falling in debt is that you are not earning that much. You can address this problem by getting a side job. Start by looking at home-based job opportunities on the Internet. Look for a job with a more flexible work schedule. This way, it won’t interfere with your day job. You can do your side job in the morning before going to work or in the evening after you’re done with your day job. The choice is yours on how you will manage your time.
Make sure that the money you make from your side job will all go toward paying off your debts. If you’re using it to buy a new car or travel, then you’re only accumulating more debts. Forget about leisure activities for now. Your focus is to pay off your debts.
Pay More Than the Minimum Amount
If you have $15,000 on your credit card with a 15% APR and you’re paying only $600 a month, it will take you 14 years to pay off those debts. Assuming, of course, that you’re not going to use your credit card anymore. That, in itself, is already quite a challenge. Pay off more than your minimum amount. It will help you save on interest rate costs, and it will speed up the process of finishing paying off your debts.
Create a Bare-bones Budget
Eliminate any unnecessary spending in your life. Cut off your cable TV and avoid eating out. You should also not get a new phone. Think about it: do you deserve a new phone when you’re already up to your neck in debt? Remember that a bare-bones budget isn’t forever. This is only temporary. You’ll go back to your original spending budget once you’re done with your debts.
Being in debt isn’t supposed to be forever. You don’t pay off your debts well until you’re in your retirement age. You should start paying them off now when you’re still physically able to work. What happens when you fall ill or lose your job? You have to clear off your debts, save, and prepare for what lies ahead.