Staring at a huge pile of bills isn’t anyone’s idea of fun. Debt is one of the biggest barriers to achieving happiness.
Luckily, you can end this depressing cycle by implementing some changes to your financial lifestyle.
5 Innovative Ways to Tackle Debt in 2019
Before proceeding, it’s imperative that you know exactly how much debt you’re in. Listing all of it puts things into sharp perspective.
You might be surprised to discover you owe a lot more than you thought. Once you have a firm grasp of the situation, follow these tips:
1. Consider the Debt Snowball Effect
Having several debts can be an overwhelming experience. No matter how committed you are, it might feel like you’re not making progress even after making several payments. Debt snowball means paying off the smallest bill first.
The amount set aside for that cleared bill is then added onto regular payments made towards your next smallest bill. With each debt paid off your repayment towards the next one increases significantly. This gives you the psychological motivation needed to tackle all of them.
2. Join the Gig Economy
The beauty of online gigs is that you don’t necessarily have to have lofty academic credentials to make money. So long as you provide high-quality samples of any skill you’re good at, chances are someone will pay for it. These skills can be either self-taught or gained through affordable online courses.
Such gigs include designing logos, providing voice-overs, translating articles, and being a virtual assistant. You can earn hundreds to thousands of dollars each month and channel them towards settling your debt. Some independent contractors become so successful that they resign their day jobs to do freelancing full time.
3. Take a Personal Loan
If done smartly, using a personal loan could be a part of your debt avalanche strategy. This means paying off the ones with the highest interest rates first such as credit card debt. You also get to consolidate your various debts into one that you can tackle decisively.
A major benefit of personal loans is their unsecured nature. They only require an active checking account to qualify.
4. Become a DIY Expert
You don’t always have to outsource every single task. Some of them can be performed by simply watching online tutorials on sites such as YouTube. Whether you want to fix your computer or renovate your house, there are enough online tips to guide you.
Other than saving you money, these DIY projects can be an extra source of income. Sharing your new found expertise online can attract interest from paying subscribers.
5. Reign in Impulse Buying
We all know how overpowering impulsive purchases are. Putting an end to this habit can get you out of debt faster than you imagined. One way of doing so is having a budget and sticking to it. Studies also show that delayed gratification is an important characteristic of successful, debt-free individuals.
You don’t always have to have the latest car or gadget when the one you’re using still works fine. By waiting a few weeks or months, you can buy the same items at massive discounts.
You can stop reckless spending by going through your financial statements and listing all payments made via credit card. Put an end to all monthly subscriptions to services that no longer add value to your life.
Another radical idea is holding a garage sale. Even though you might be attached to most items, chances are you’re hoarding many that are no longer useful. Selling them gives you enough money to supercharge your debt repayment efforts.
Are You Ready for the Challenge?
Hopefully, these tips have inspired you to take action. By practicing discipline and consistency, you’ll very easily conquer even seemingly insurmountable mountains of debt.
The earlier you implement your action plan, the higher your chances of success. All the best!