Escaping The Shackles: Quick Ways To Reduce And Remove Debt

Throughout our lives, most people will encounter debt in one form or another. Even if it’s simply borrowing money to make a major life purchase, it’s money that needs to be paid back. While this in itself is nothing to fear, finding yourself in a position where you can’t meet those repayments is one of the most worrying times of all.

Being in the red can leave you feeling trapped and unable to move forward with your life. But there are ways to start improving your situation, even when it feels like all hope is lost. Let’s take a closer look at some of the options at hand.

Consolidate

Consolidating your existing debts into one isn’t going to remove the debt. However, it will make it more manageable. Perhaps more crucially, clearing multiple accounts in one fell swoop will often reduce the overall payments too.

Personal loans are for moments like this. If you feel like you’re drowning in debt, this could be the best way to bring you to the surface. You still face a long swim to shore, which will require financial responsibility starting from this point on. Nonetheless, removing some of that strain will undoubtedly aid your recovery.

Release Assets

The most obvious way to generate the funds needed to clear your debt is to start selling items. If you’re in serious debt, looking at your biggest assets may be necessary. When time is of the essence, asking “who will buy my house?” fast is crucial. After all, you might not have months to waste.

Downsizing or selling a home with a view to renting may feel drastic, but unpaid debts could result in losing the property anyway. Doing it on your terms is a far better option. For people in slightly less severe situations, selling the car may be a better option. In truth, leasing is often a better option for your enjoyment as well as your finances

Utilize Money Making Situations

Selling assets isn’t the only option at your disposal. Renting out the spare room could bring in hundreds of dollars each month, and that can soon make a huge dent in those mounting debts. Just remember to take increasing energy bills into account.

You can even rent out smaller items like video cameras to generate extra funds. If all else, extracurricular work through Uber and similar platforms can increase your earnings. The more money you have, the sooner you’ll pay those debts. Moreover, if creditors can see you are making a genuine effort, they’ll often be more willing to give you a little more time too.

Borrow From A Friend

Asking a friend or relative for money is never nice. However, borrowing money will mean that you no longer have to pay back those rocketing interest rates. By eliminating those, your overall repayments will drop overnight. Just remember that both parties need a written up repayment plan because nobody wants to lose a friendship over something like this.

Is it ideal? No. But neither is your situation. You’d help your friend if the roles were reversed, so don’t feel bad about stretching out to take that helping hand. If you need someone to temporarily manage your funds to ensure that your situation gets better rather than worse, then seek that support too.