Many people have some kind of debt they’re planning to pay off in the next five to ten years. Ten years is a long time and these people will likely put on more debt. Some debt, however, needs to be paid off sooner rather than later and that can put a lot of stress on debtors.
When figuring out how to pay off your debt in a timely manner, you may need to consider your options:
Pay more than the minimum
Most people pay off the minimum amount of debt required each month. However, each month debtors will likely see some interest added to their debt, making it harder to pay off debt. You may have the choice to pay off more than the minimum payment or pay off large chunks of your debt.
Pay off your lowest debited credit card first
If you have several credit cards with debt, you may make a minimum payment each month on every card – making you pay off more debt each month than you need to. You may have better luck paying off a single card first so you don’t have to make minimum payments each month – but, don’t forget to keep making payments on the other cards.
Don’t sign up for more credit cards
Many people receive credit card offers in the mail, especially if you’re a current student. It can be tempting to take on more debt when you’re maxed out on your other cards. You may consider refraining from taking on more credit cards until you’ve paid off your other ones.
Going back to the necessities
Many people only use their credit card for necessities, but it’s easy to consider buying just about anything once you have a credit card. If you’re building up a lot of debt fast with excessive purchases, it may be time to look at what you need now versus stuff you don’t need. You may consider just buying food and gas with credit cards, instead of furniture and new clothes.
File for bankruptcy
The quickest way to lose your debt may be bankruptcy. Chapter 7 bankruptcy, or liquidation, can help remove most or all of your debt. You may need to reach out for legal help when considering Chapter 7 bankruptcy.