Debt can be one the biggest stressors for the average person in today’s society. This is especially true for millennials, a generation where the debt-free individual is like the golden goose.
When you are trying to pay off your debts, be they student loans, mortgages, credit card balances, or whatever, many people not only try to make extra money but to save extra money. This extra money, wherever it comes from, can be easily applied to that debt, shortening its hold over you and even potentially giving you the opportunity to have a little spare change for yourself. Follow these quick, easy tips to pay off your debt quickly and put your money towards something more useful.
[Read: 7 Best Ways to Get Out of Debt]
Cut Out Your Cell
In the USA, cell phone plans are among the most expensive in the world, “in the company of countries like Botswana, Angola, and Morocco,” whereas the cheapest plans reside in countries such as Italy, the United Kingdom, Indonesia, and Germany. However, there are alternatives! The money you save with an unconventional cell plan could help you pay off your debt more quickly.
- Virgin Mobile: This Company offers excellent deals that allow customers to easily switch, purchase new phones, and talk and text internationally. Another benefit for frequent travelers is Virgin Mobile’s international presence; giving you the opportunity to easily transfer your plan any time you relocate.
- Ting: This organization proclaims itself as “mobile that makes sense” has an average monthly bill of $23 / customer. With an easy-to-use app and accessible customer support, Ting offers deals starting from $6.
- Straight Talk Wireless: This business allows customers to start with a new account, bring in old phones, tablets, home phones, and mobile hotspots.
Cut Out Your Card
Credit card debt can be a killer. What may come as a surprise to many credit card account holders is that there are easier ways to save money, and therefore pay off your debt more quickly, than by paying your monthly bill.
- Working with a Debt Consolidation Company: A debt consolidation company exists to “pay off your existing debts and transfer the monies owed into one loan with one manageable, monthly repayment.” This is an excellent option, particularly for people with many small loans to multiple creditors. Much of the time, their interest rates will be reasonably small, around 5-6%, making the combined interest of the single loan smaller than the combined sum of your previous multiple loans.
- Transferring Your Balance to a 0% Credit Card: This type of credit card will “enable you to transfer a certain amount of money into the new account without having to pay any interest for a set period of time.” However, an important fact to keep in mind is that interest-free credit cards are only interest-free for a finite amount of time, after which point their interest can be quite astronomical.
Cut Out Your Car
Car insurance is one of those things that, once you have it, most people just let it be. However, the rates of different insurance policies are constantly shifting, and doing some quick comparison-shopping could clue you into whether or not you are overpaying for your car insurance. If you are, taking advantage of one of these options could help you pay off your debt more quickly.
- Find a New Policy: A little browsing never hurt anyone. Compare your current car insurance deal to existing ones in your area to have a better understanding of what you are, or could be, saving. Be sure that the information you include on your application is up to date!
- Fiddle with Your Current Policy: There are many ways to manipulate your car insurance to better serve you, such as raising your deductible or dropping the higher cost coverage if your car is paid off. Explore the offerings on your insurance company’s website to see what you qualify for.
[Read: Ways to Pay Your Debts]
Cut Out Your Food
Not completely! Obviously. But seriously, food is one of the most wasteful industries in the world! By saving money when it comes to your food, you could pay off you debt much more quickly.
- Be a Smart Shopper: The USA currently wastes almost 40% of its food, and “according the various estimates, American families throw out between 14 and 25 percent of the food and beverages they buy.” Be a conscious consumer and shop more often to buy fewer items. By shopping more regularly for fewer items, there is a smaller chance that food, especially produce, will go bad and become unusable.
- Stop Eating Out: According to Forbes, “Americans spend nearly $1K annually eating out for lunch.” And that is just for lunch! Eating out, while convenient, is actually incredibly expensive. Although it may be more inconvenient, packing a brown bag lunch will save you money and positively impact your debt.