5 Ways to Reduce Debt Without a Loan

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This is a guest post. Hope you find it helpful to your debt reducing journey!

Sometimes we don’t have the option of reducing our debts with a loan- quite frankly, it’s not always necessary to take out a loan in order to pay off debts. There are conservative methods for paying off debt that are just as effective, in spite of forgoing the option to pay it off with a loan
in one fell swoop.
We want to provide you with 5 manageable ways to reduce debt without having to take out a loan:
 Stop Creating Debt
 Cut Your Expenses
 Sell Items You Don’t Need
 Make More Money
 Pay Off Debts, from Smallest to Largest Amounts

Stop Creating Debt
You’ve recognized that you’d like to reduce your debts in a conservative manner that doesn’t involve taking out more debt, and that’s awesome! The first thing you can do actually involves switching your mindset, so you can understand the difference between being “broke” and just “overspending.”

If you refer to yourself as “broke,” you operate with the mindset of lacking the sufficient funds to pay for your necessities. But if you’ve in fact overspent your earnings, you will recognize that this is a behavioral issue, and that means you have the ability to change your circumstances.

Stop adding to your debt with any unnecessary spending. Set your budget around your fixed and variable expenses and stop making payments with your credit card and financing the extra purchases.

Cut Your Expenses
Once you’ve established your budget and made a commitment to refrain from creating any more debt, take a considerable effort to evaluate your expenses. With regard to your fixed and variable monthly expenses, explore your options for cutting some of them.

Can you afford to reduce your mobile phone plan? Can you reduce your cable subscription and move to streaming movies and shows online? Can you find a way to save on transportation expenses by beginning to use public transportation? Can you refine the app subscriptions you have on your phone? Every little bit makes a difference, if you take those savings and apply them to your debt and chisel away at it.

Sell Items You Don’t Need
Once you’ve refined your expenses, explore what items you’re holding onto that you don’t actually use or need. Why surround yourself with items that no longer serve you? The bookshelf and television that sit in your spare bedroom, used sparingly, may no longer fill a need in your home.

What if you could minimize your belongings and rid yourself of unnecessary things through a garage sale or online sale, and then use those earnings to pay down your debts? Make your things work for you, even if that involves getting rid of them.

Make More Money
It’s not always simple to ask for a raise at your job, or to command more hours of work from your employer. Some things aren’t easily negotiable. However, freelancing services and products that showcase your strengths is a completely viable option for making more money for yourself.

There are a plethora of ways to make money through services. Are you great with dogs and have the ability to offer dog walking services on the weekends? Do you have the time to write content for businesses and their blog posts? Do you have an interest in providing ride sharing services? There is no true limit to what services you can provide to people who are willing to pay. You can utilize this method of earning extra money to significantly reduce the time you spend paying down your debts.

Pay Off Your Debts, Starting with the Smallest Amount
It’s not always a traditional approach, but try paying off debt according to the total amount due, versus the interest rates of each creditor. Gather all of the accounts and information on each of your debts and list them in order, from smallest to largest.

Make an agreement to make the minimum payments on all of your accounts, except for the one with the smallest amount. Set a goal to pay off the smallest amount first. Then move to the next account, while taking what you were contributing to the- previously- smallest account, and contribute it to the next one on the list. Continue this pattern until you pay everything off, and watch the momentum increase as you excitedly mark more creditors off your list.

Taking control of your finances and strategizing how to pay down debt is an admirable undertaking.We hope you consider these tips as you take the steps toward your financial future.

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