Are you ready to pay off credit card debt this year? It’s about time for you to finally free yourself from the clutches of debt. But are you willing to do everything? Are you willing to take extreme measures if it means you can successfully get out of debt?
The question is, what does debt freedom mean to you? That is a great mindset to have while you are trying to get out of debt. According to reports, more than half of Millennials have credit card debt and 68% are stressing about it.
When you are already stressing about your debts, that is an indication that you need to do something about it. Feeling prolonged stress in your life is never good. It can keep you from focusing on the goals that can improve your financial future. It can even threaten your physical and mental health. If you want to secure your future, you need to start working on your debts as soon as possible.
Drastic moves to pay off credit card debt
Sometimes, the usual methods are no longer enough to pay off credit card debt. If you had been trying various debt relief strategies but nothing gives you significant progress, it might be best to focus on your debt payments. There may be ways for you to increase it. When you increase your monthly debt payments, it will help significantly reduce your debts. It will get you out of debt faster. Since you are dealing with high-interest debts, this will help you save a lot of money.
Of course, the challenge here is identifying the extreme measures or drastic steps that you are willing to make to pay off credit card debt. Here are some suggestions that you may want to consider.
Move to a different city
This is really one of the extreme options that you have to pay off your credit card debts. There are States and cities that are cheaper to live in. Generally, if you live in metropolitan cities, the cost of living is higher. So if possible, live on the outskirts. Look for neighborhoods that are safe enough for you to live in without making you spend too much. You will be surprised at how much your household spending will decrease. From the utility bills to groceries and entertainment expenses. All of these will be cheaper if you live in the right place. This will not just keep your living expenses from putting too much strain on your budget. It will also give you more money to use to pay off credit card debt.
Live in a smaller home
If you do not want to move to a new State or City, you can just opt to live in a smaller house. This is still an extreme move but is not as drastic as moving to another place. You can stay in the same city or state as long as you move to a smaller house. If you own your house, you can opt to sell it and go for a smaller property. It will be tedious to arrange this. But it might save you a lot of money when it comes to mortgage or rent payments. A smaller house will also be cheaper to heat or cool. This will effectively lower your energy bills. And with a smaller space, you do not have to worry about buying a lot of stuff – like furniture, etc.
Sell your car
Did you know that owning a vehicle will cost you $773.50 a month? That is a lot of money that can be used on something else. If you have two cars, sell the other. Or if you really need a car, get a more fuel-efficient one. That way the cost will not be as much. But if you can live without a car, then get rid of it. Riding public transportation is more economical. You do not have to worry about any car repair or maintenance costs. It can really be good for the environment as well.
Have a no-spend year
You can also commit to having a no-spend year to help pay off credit card debt. This does not mean you will completely refrain from spending anything. We live in a consumerist society after all. We need to buy and pay for basic necessities and commodities. But what you can do is to limit it. If you look at everything that you spend each month, you will realize that there are a lot of expenses that you can live without. Choose which of these you will stop spending on. For instance, you can stop spending on new clothes and just make do with what is in your wardrobe. Or you can commit to bringing a brown bag to avoid eating out for lunch.
And this does not have to be for the whole year. It can be for a month only. Once you have done it for a month, you might be encouraged to keep on doing it for the rest of the year.
Get a second job
Another drastic change that you can do is to get a second job. This might be harder to do as well because you have to sacrifice your personal time to meet the demands of this job. But you will find that it is worth it. This will not just give you the extra money to pay off credit card debt. It can also secure your future. This can be another source of income. That way, even if you lose your primary source, you still have another one.
There are many options to get a second job. You have the option to get online jobs or freelancing gigs. Online jobs will allow you to keep your day job. It can be flexible enough to allow you to choose when you will do your work.
Benefits of paying off credit card debt
There are many benefits to enjoy when you pay off credit card debt as soon as possible. It can improve your finances and it can also help you learn your lessons about credit card use. As you pay off your balance, you can implement credit card tips that will allow you to use this purchasing tool without fear that it will accumulate a lot of debts. When you live a debt-free life, you will enjoy these three benefits.
Being in debt will make you feel uneasy about life. It will always make you worry about your financial stability. The rising cost of living and the stagnant wages will already cause you stress. If you have high-interest debts, that will add to the anxiousness that you are already feeling. So if you want less stress, commit to being debt-free.
More room for other goals
Being free from debt will also allow you to work on other goals. These include investing, buying your own house, or maybe starting your own business. While it is possible to reach these goals even with debt, it will be harder and more complicated. After all, you will be working with limited finances. It is better to get rid of the debt first so you can focus on the other goals that can help improve your financial situation.
Secure financial future
Finally, you can also secure your financial future if you pay off credit card debt. While it can be useful sometimes, debt can still pose a threat to your finances. It can quickly wipe out everything that you worked hard to accomplish. Not to mention the fact that the debts you are paying off will be using up financial resources that could have been used to improve your financial position. By eliminating the threat of debt, there is nothing stopping you from accomplishing more in life.