The average person living in the United States is $90,460 in debt. If you feel like you’re piled under a mountain of debt, you’re not alone.
But, that doesn’t mean you have to join the crowd. You can dig your way out.
If you’re feeling the pressure of too much debt, keep reading. Our team at Kingcash has pulled together our best advice for how to pay off debt fast.
Assess How Much Debt You Have
Many people with debt refuse to look at how much debt they have. They think that looking at the number will make the debt real (even though it’s real whether you look at it or not).
Understanding the exact amount that you owe is important to determine what you need to do. Owing $1,000 and owing $100,000 are two very different things.
Before you start creating debt-paying strategies, you need to look over all of your accounts and write down how much you owe for each one. Write the total for each account separately. Then, total it all at the end.
Organizing all of these numbers in an Excel spreadsheet or designated app may be the best option for you. Tracking your payments over time will help you get exact numbers when it comes to conquering debt.
Plus, it’s gratifying to see exactly how much of your debt you’ve gotten rid of.
Organize the Money You Owe
Once you’ve collected the number from each account, you need to gather some additional details. You should write down the due date, the monthly minimum, and the interest rate for each payment.
These details will help you create the best repayment plan. You have to know which account is generating the most debt over time. And, you should know when exactly you have to make each payment.
Each account is likely going to be different. So, you should take the time to scour each, individual account.
Create Your Debt Paying Strategies
Now that you’ve gathered all of the information you need about the debt you owe, it’s time to strategize.
In general, there are two ways to go about paying debt:
- Debt snowball
- Debt avalanche
The first, debt snowball, refers to paying off small debts first. After you’ve paid off a hundred dollars here and there, you can start chipping away at the larger amounts.
The second, debt avalanche, is the opposite. It refers to paying off your larger debts first so that the smaller debts don’t seem as scary.
Either is a quick and easy solution to ordering your debt payments. But, there’s a better way that encompasses both debt-paying strategies.
The ultimate way to pay a debt is by considering your interest rate. The interest rate of each credit account dictates how much interest you’ll build upon the money you owe.
The more money you owe, the more interest you’ll pay. Likewise, a higher interest rate yields a higher interest payment.
Ideally, you can pay off your high-interest, high-debt accounts first. You can calculate the amount of interest you’d have to pay. Then, work on paying off those accounts first so that you save more money in the long run.
How to Pay Off Debt Fast With Kingcash
If you’re looking to pay off debt almost instantly, you should consider Kingcash. At kingcash.ca, Canadian citizens over 18 years of age can receive a quick loan to pay off their debt fast.
Once the cash hits your account, you can use it to pay your other credit accounts.
Consolidating your credit accounts using quick loans can make it easier to make payments. Rather than handling multiple credit accounts, you’re paying one loan back.
We highly recommend looking into Kingcash quick loans if you’re struggling with your debt-paying strategies.
Skip Additional Debt
As you’re paying off your debt fast, you have to be careful to not accumulate more debt. If you’re spending more than you’re paying off, you’re not helping your debt amount shrink at all.
In fact, you could be raising your debt.
While you’re getting your debt under control, you need to restrict spending and practice healthier financial habits. Otherwise, you may end up getting all of your debt back once you’ve paid it off.
If money is tight right now, you should try to pay back more than you’re spending. It may take longer to pay off your debt, but it’ll slowly chip away at the amount you owe.
Skipping the additional debt will also help you achieve financial freedom. Then, you’ll never have to worry about harmful debt again.
Celebrate Along the Way
Paying off debt is stressful. No matter how little or how much debt you’ve paid off, the process can be exhausting.
So, you need to celebrate along the way. Give yourself small gifts or experiences to celebrate every milestone you hit.
Plan your celebration marks ahead of time and write them down. These goals will give you something to look forward to. And, you may pay off your debt faster because of the motivation it’ll give.
You could watch a movie, go on a date, get drinks with friends, or buy a new shirt. Your prize is up to you.
As long as you’re not planning on blowing thousands of dollars in one night, these small celebrations shouldn’t set you back on your goals.
Without these little celebrations, you may not have the energy or motivation to carry you through paying all of your debt off.
Pay Your Debt With Kingcash
Paying off debt doesn’t have to be dreadful. You can make the process fun and rewarding.
Your credit score will improve over time. Your net worth with increase. And, you’ll reduce your stress.
There’s plenty to celebrate while you’re tackling debt.
But, the last thing to worry about is where to get the money. That’s where Kingcash comes in.
You’ve learned how to pay off debt fast with a quick loan. When you’re ready, claim your cash. We can help you eradicate debt and get your spending back on track.