Debt is a universal struggle. High interest credit cards, hospital bills, or student loans, car payments — everyone knows the challenge. If you feel like you’re drowning in it, you’re not alone. A recent study shows that over 80% of Americans are in debt.
So how do you get out of it?
Crushing your debt is easier than you might think, as long as you have the right plan. It’ll take some work and dedication, but we’re here to help. Below you’ll find 5 clever ways you wouldn’t normally consider to help you crush your debt.
Imagine how great it will feel when you no longer have it looming overhead!
1. Ask This Company to Pay off Your Credit Card Debt
If you have a lot of debt, getting out of it can feel stressful (and nearly impossible). Here’s the problem: the longer you put off tackling it, the harder it gets to fix. If you don’t take control of it early on, it can add undue stress to your life for years. But what if there was a way to get out of debt once and for all?
Five Stars Financial could help. If you have more than $10,000 in debt from credit cards, medical bills, collections, or personal loans, their representatives might be able to assist you in consolidating your debt into one low monthly program payment.
Best of all? There are zero fees until your debt is resolved, and you could be debt-free in 24-48 months. To get started, just answer a few simple questions. It only takes 30 seconds to see if you qualify!
2. Stop Overpaying When You Shop Online
Shopping online has its perks. It’s super convenient, but it can be time consuming to find the best deals. Instead of hunting for coupon codes (that don’t always work!) and opening tons of browser tabs comparing prices, you can try Capital One Shopping.
Capital One Shopping makes saving money effortless. Just add the browser extension and when you check out, it’ll scour the internet for coupon codes to help you save cash. And before you check out at 25+ major retailers, Capital One Shopping will notify you with a friendly pop-up if the item you’re buying is available cheaper somewhere else.Capital One Shopping is free to use and won’t show you ads. Add it today and stop overpaying!
3. Create A Simple Budgeting Plan
We recommend the popular 50/30/20 budget to maximize your money. In it, you spend roughly 50% of your after-tax dollars on necessities, including debt minimum payments. No more than 30% goes to wants, and at least 20% goes to savings and additional debt payments beyond minimums.
We like the simplicity of this plan. Over the long term, someone who follows these guidelines will have manageable debt, room to indulge occasionally, and savings to pay irregular or unexpected expenses and retire comfortably.
4. Pay Off High Interest Credit Cards With a Personal Loan
Simplify your finances by using a personal loan to pay off high interest credit cards. It is one of several tools you might consider to gain control of your debt, from bills to credit cards. With a personal loan from Five Stars Financial, for example, you can apply for up to $100,000.
5. Be Smart About Where You Stash Your Savings
Where are you going to keep the money you’re saving? Consider some options that’ll yield interest or returns, so your money isn’t sitting stagnant.
A high-yield savings account allows you to easily access your savings while also earning some interest. We suggest finding an account that offers 4% APY or higher. It’s great for an emergency fund or vacation stash.
A certificate of deposit (CD) will earn you higher interest. However, CDs have fixed maturity rates. That means if you put your money into a five-year CD, you can’t access it early, or you could face penalties and fees. You also can’t add money to a CD.
Stocks and bonds are two popular ways to invest. Both are ideal for long-term goals, like retirement savings. Stocks carry a higher risk, and you could potentially lose money. However, if you’re willing to ride out the market’s ups and downs through the years, it could pay off. Bonds tend to be lower risk — but so are the returns. As a general rule of thumb, the younger you are, the more risk you can afford.
6. Americans With Over $10,000 Debt Could Qualify for Emergency Debt Relief
Credit card debt is overwhelming. It weighs on your mind and causes massive anxiety. You end up emotionally and physically drained. Even worse is that only paying the minimum monthly payment makes it impossible for you to get out of debt quickly. Luckily, there are newly approved Emergency Relief Programs that allow Americans to legally get out of paying debt if they owe more than $10,000. Programs like this often don’t last for long, so make sure to see if you qualify as soon as possible.