Paying off debt can easily feel like it takes an eternity to kill. It took nearly six years to pay off my debt and it seemed like I’d never become debt-free. Thankfully, that wasn’t the case. While I eventually paid it off, it required creativity.
I looked for ways to make extra money as well as ways to save money. With regards to saving money, the first thing I did was analyze all of my monthly bills to find savings. The money I saved combing through my bills could be applied against my debt. If you’re looking for ways to pay off debt quicker, consider which of your monthly bills you might be able to slash to free up extra cash.
Cell Phone Bill
How much is your monthly cell phone bill? If you’re using one of the major national carriers, you’re paying upwards of $150 per month. If you’re on Wi-Fi most of the time, there is simply no need to be paying that much for cell phone service.
There are plenty of pay-as-you-go cell phone plans available for $50 or less per month. My wife and I recently switched from a major carrier to a month-by-month plan and are now saving $100 per month. If you need more money to pay off debt this should be one of the first monthly bills to consider.
The Credit Card Bill
If you’re currently carrying significant credit card debt, your bill is one of the best things to cut. Many don’t realize it, but there are ways to save money on that monthly bill that can help you pay off your debt quicker.
There are two main options to consider when trimming the amount you’re paying on your credit card – working with a debt consolidation company, or transferring your balance to a 0% credit card. The best personal loans offer rates as low as 5-6% and let you make a fixed payment each month. The 0% interest credit card is self-explanatory; you’re not paying interest and thus only pay towards principal. With the average credit card interest rate hovering around 15 percent, either option can save you significant money and allow you to pay off debt quicker.
Get offers for lower-interest rate debt consolidation loans here on ReadyForZero!Check your rate using ReadyForZero's free debt consolidation tool. People have saved thousands by consolidating higher-interest debts using a single, personal loan, this will not negatively impact your credit. Check Your Rate Now
We all know, in theory, that car insurance rates differ. Yet, when was the last time you did some comparison-shopping to see how much you’re overpaying? Unless you live in a state that has above average insurance rates, it’s quite likely you’d be able to save something by making a switch.
If you don’t know where to start to save on your insurance rates, explore raising your deductible or dropping higher cost coverage if your car is older and the loan is paid off.
While we all need to eat, there are many ways to save on our grocery spending. One area to keep in mind when it comes to grocery spending is the amount of food you’re throwing away each week. Looking at that food as cash can change your actions awfully quickly!
We have $165 billion in food waste each year in the States. The environmental aspects aside, that presents a big opportunity for savings on a personal level to apply towards debt. This’ll likely require some change in attitude or practice though the ability to pay off debt quicker can be a great incentive.
Paying off debt requires sacrifice. With a little work, you can free up more money each month to get you to your goal that much quicker.