5 Clever Ways to Get Rid Of Debt
February 19, 2024 - Daily Stash Editor
Top 5 Offers
- Freedom Debt Relief - Resolve Over $15k or more in Credit Card Debt
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- National Debt Relief - Ask this Company to Pay off Your Debt
- NerdWallet - Get Personal Loans up to $50,000
- Community Tax - Receive Help and Resolve $10k or more in IRS Tax Debt
Over 348 million Americans are currently carrying some type of debt. And whether it’s student loans, car payments or credit card debt, it can take a huge toll on your finances.
When you’re caught in debt, it can be difficult to imagine your life without it.
But how can you get out of debt?
It doesn’t have to be a financial death sentence; all you need is the right resources. Here are some clever ways to escape debt that you haven’t heard of yet.
Imagine that feeling when you finally aren’t drowning in debt.
The Daily Stash is reader-supported. We may receive compensation from the products and services mentioned in this story, but the opinions are the author's own.
1. Resolve Over $15k or more in Credit Card Debt
Freedom Debt Relief knows that dealing with credit card debt alone can take a toll on your mental and physical health, so they are here to help. The team of experts at Freedom Debt Relief could negotiate with your creditors so you could resolve your credit card debt faster than making minimum payments and for potentially less than the full amount you currently owe. To qualify, recommended for over $15k in debt and reside in a qualified state*.
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*Qualified states include: AL, AK, AZ, AR, CA, FL ,ID, IN, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, DC, WI.
2. Stop Overpaying on Auto Insurance
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3. Ask this Company to Pay off Your Debt
It’s always difficult to get out of debt, especially on top of the other bills and inflated prices you have to cover on a monthly basis. But your debt has been made easier to handle and can be paid off much faster when you use National Debt Relief.
With zero fees to worry about until your debt is resolved, your debt of $7,500 or more can be reduced and paid off within 24 to 48 months when you allow National Debt Relief to help. National Debt Relief has relieved hundreds of thousands of customers to reduce their debt by 24% on average including fees.
With over 75,000+ 5-star ratings from top-review sites, National Debt Relief can be depended on when you’re looking to count on reducing your debt and save you $1000’s when you need it the most. In order to get started, answer a few questions to see if you qualify.
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5. Receive Help and Resolve $10k or more in IRS Tax Debt
Did you know that if you have at least $10k in IRS tax debt and are not already enrolled in a tax debt relief program, you could qualify to receive help from this tax service company? Community Tax has helped resolve over $1 Billion in tax debt. Take advantage and quickly receive advice from their specialists to help you end your tax stress.
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FAQs
5 Steps to Getting Rid of Debt
- Set a goal. All successful projects start with a clear goal. ...
- Make a list of your current debts. In order to get rid of your debt, you need an accurate and complete list of the debt you have. ...
- Gather additional information on debt repayment. ...
- Make a plan. ...
- Stick with your plan.
Consider the snowball method of paying off debt.
This involves starting with your smallest balance first, paying that off and then rolling that same payment towards the next smallest balance as you work your way up to the largest balance. This method can help you build momentum as each balance is paid off.
How to aggressively pay off debt? ›
What's the best way to pay off debt?
- The snowball method. Pay the smallest debt as fast as possible. Pay minimums on all other debt. Then pay that extra toward the next largest debt. ...
- Debt avalanche. Pay the largest or highest interest rate debt as fast as possible. Pay minimums on all other debt. ...
- Debt consolidation.
Use a debt consolidation loan
With a debt consolidation loan, you borrow money from a lender and roll all of those debts into one loan with a single interest rate. This allows you to make one monthly payment rather than paying multiple creditors.
What are the 5 C's of debt? ›
This review process is based on a review of five key factors that predict the probability of a borrower defaulting on his debt. Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral.
How to get rid of $30k in credit card debt? ›
How to Get Rid of $30k in Credit Card Debt
- Make a list of all your credit card debts.
- Make a budget.
- Create a strategy to pay down debt.
- Pay more than your minimum payment whenever possible.
- Set goals and timeline for repayment.
- Consolidate your debt.
- Implement a debt management plan.
How to get out of debt when you have no money
- Step 1: Stop taking on new debt. ...
- Step 2: Determine how much you owe. ...
- Step 3: Create a budget. ...
- Step 4: Pay off the smallest debts first. ...
- Step 5: Start tackling larger debts. ...
- Step 6: Look for ways to earn extra money. ...
- Step 7: Boost your credit scores.
Option Two: File a Chapter 7 bankruptcy. The “upside” of proceeding in this fashion is that your Chapter 7 Trustee will not be able to reach your assets either, and the stress associated with harassing phone calls and other collection activities will stop immediately upon the filing of your bankruptcy petition.
What is the debt avalanche method? ›
The debt avalanche is a systematic way of paying down debt to save money on interest. Individuals who use the debt avalanche strategy make the minimum payment on each debt, then use any remaining available funds to pay the debt with the highest interest rates.
What is the 50 30 20 rule? ›
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
What to Do if You're Drowning in Debt
- Get on a budget. Making a budget is one of the most important steps you can take when you're drowning in debt. ...
- Cut back on the extras. ...
- Pause all investing. ...
- Don't take on any new debt. ...
- Increase your income. ...
- Start working the debt snowball.
- Understand Your Debt.
- Plan a Repayment Strategy.
- Understand Your Credit History.
- Make Adjustments to Debt.
- Increase Payments.
- Reduce Expenses.
- Consult a Professional Financial Advisor.
- Negotiate with Lenders.
National Debt Relief is a legitimate company providing debt relief services. The company was founded in 2009 and is a member of the American Association for Debt Resolution (AADR). It's certified by the International Association of Professional Debt Arbitrators (IAPDA), and is accredited by the BBB.
How to clear debts quickly? ›
Here are five of the fastest ways to achieve debt freedom:
- Take advantage of debt relief services. ...
- Reduce interest where possible. ...
- Focus on your highest interest rate first. ...
- Take advantage of opportunities to earn extra income. ...
- Cut expenses where possible.
On average, consumers completing the program see a 23% decrease in enrolled debt after fees. A big plus is that National Debt Relief doesn't collect any fees until a settlement offer is received from the creditor, the client approves the settlement and at least one settlement payment is made to the creditor.
What is the step 5 of the debt diet? ›
Step # 5: Develop a Monthly Spending Plan.
Give yourself a budget and stick to it. It should include all housing costs and expenses, transportation and other miscellaneous expenses, and the debt that you owe.
How long will it take to pay off $30,000 in debt? ›
It will take 41 months to pay off $30,000 with payments of $1,000 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.
How to pay $30,000 debt in one year? ›
The 6-step method that helped this 34-year-old pay off $30,000 of credit card debt in 1 year
- Step 1: Survey the land. ...
- Step 2: Limit and leverage. ...
- Step 3: Automate your minimum payments. ...
- Step 4: Yes, you must pay extra and often. ...
- Step 5: Evaluate the plan often. ...
- Step 6: Ramp-up when you 're ready.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
