7 Ways to Manage Debt Fatigue
Debt is probably one of the biggest issues for people in the United States. Even if you borrow $50, it still adds up. A recent report shows that people in the U.S. owe $1.4 trillion in credit card debt only. Imagine other types of debt and the amount people owe to banks, mortgage lenders, credit unions, etc. Having debt is harmful to your financial health, but there are ways to manage your debt fatigue. Read on!
Start an online business
Starting your own side business is not easy. Do you know how to sell things online? Can you design logos and business cards? Are you a good writer? Can you make high-quality YouTube videos? If you can, then it is a great way to start making money online. Although earning online is slow, but it will make you a money-making machine eventually. Thus, you can save money every month and pay off your debt.
Get a part-time job
If you don't have any digital skills, you can start earning money via a part-time job. For example, you can become a driver for Uber or Lyft. You can even become a pizza delivery guy at night. Anything that suits you can help you make some more money.
Related: Can I Get a $4000 Loan Online?
Working after your regular 9-5 job is tiresome. However, if you can sacrifice a little to earn some extra cash to pay off your debt, then getting a part-time job is totally worth it. So, you must not waste time.
Sell your car
On average, the monthly payment for a car is $553, which is outrageous. Instead of paying high interest on a new car, it is better to travel through public transport. If you want to get rid of the debt snowball, then sell your car.
Don't use credit cards
Experts recommend ditching your credit cards completely. A credit card is like a parasite that will completely cripple you. As mentioned earlier in the article, Americans owe $1.4 trillion of debt alone on credit cards. If you want to get out of debt, then stop making it a way of life, one way to do it ditching your credit cards.
You can’t get out of debt and save money simultaneously. Stop making contributions to your 401(K) plans because you have to get out of debt first and then think about investing money. Once you are out of debt, then make a plan and start with investing 15% of your income toward retirement.
Ignore your friends
Although it seems not very nice to ignore your friends, if you focus on them, you will never achieve your goal. For example, a friend tells you that he is going on a trip to the Caribbean next week and ask you to join him, then keep in mind trips don’t come cheap or free.
Also, in 10 years, your friend will have a luxury house, a new car, no mortgage, and credit card bills, but you will remain at the place where you were. That's why informed decisions are always better than pleasing your friends.
Make a budget
Creating a budget will help save you more money that can be used to pay off your debt. Focus on every dollar you spend and buy things that are absolutely essential until you are out of debt.
|Thomas Moore is a proud American with a Bachelors Degree in Business Administration from the University of San Diego. He has been in the financial industry for many years holding numerous licenses in multiple states. He currently helps operate cashkingco.com and is our resident expert on all things finance and a great writer. LinkedIn Profile|