How can one pay off debts fast?


Quick Answer

Some of the things a person should do in order to pay off debt quickly include working with a budget, paying off the most expensive first, avoiding spending more than you earn, using bonuses to service debt, halting credit card usage and selling unwanted items to raise money. These are easy tips that anyone can use to ensure they get out of debt within a short period of time.

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Full Answer

Here are the most important tips to remember when thinking of paying off debts quickly.

Creating a budget: spending according to a budget will limit the amount one uses as expenditure and help in allocating some cash for debt payment.

Paying off the most expensive first: since debt is bound to accrue interest, it is wise to pay off the most expensive first in order to manage interest rates.

Avoid spending more: unless one stops spending more than they earn, they may never really get out of debt. One should spend less than they earn and use a given percentage of income to service debts.

Halt credit card usage: avoiding the use of credit cards will ensure one does not get into any further debts which may lead to financial difficulties.

Sell unwanted items: items like furniture, old bicycles, DVDs and so forth can be sold in order to raise money. This money should then be used to service the debts owed.

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