Debt can be a useful tool for paying off large purchases, but the problem is, it can be difficult to pay off your debt without a plan. So much so that 8 out of 10 Americans currently find themselves stuck in some form of consumer debt.
In other words, it’s important to set up a repayment plan or strategy for any debt you might’ve incurred – especially if you’re early in your career, because the longer you stay in debt, the more likely you are to incur more debt.
So, with that said, here’s a look at how you can get out of debt while you’re still early in your career.
1. Refinance Your Student Loans
One of the best things you can do to fasttrack your way out of debt is to refinance your student loans. Student loan refinancing involves getting a lender to pay off your existing student loans while giving you a new loan at a much more affordable interest rate. Check this guide on refinancing student loans with a cosigner.
Doing so can either help you pay less throughout the course of your repayment term thanks to a lower interest rate, or it can extend your payment deadline, which ultimately results in a lower monthly student loan payment.
It’s an underrated way to ease the burden of paying off your student loan debt while also freeing up capital that you can use to pay off other debts or even making profitable investments.
2. Live Frugally
When you’re fresh out of college and making real money for the first time – odds are you’re going to want to splurge on some luxuries like a new car, a nice new apartment or even weekly expensive dinners.
If you’re keen on getting out of debt early in your career, while also avoiding new debt, then it makes sense for you to avoid splurging on luxuries and opt for a more frugal lifestyle in order to save more money and pay off your debts early in your career.
Most people fall into a trap of getting expensive items the moment they enter the workforce, which often puts them in a position where they have to keep paying off debts for years – by living frugally you’ll be able to avoid that trap while also putting yourself in a position where you can thrive financially.
3. Sell Things You Don’t Need
To pay off your debts you’re going to need cash – and what better way to generate cash than selling items you don’t need. When you’re early in your career, chances are you’ve outgrown some of the hobbies you enjoyed in your teens or childhood years.
If you still have items that helped facilitate those hobbies – say toys for instance, or even old clothes that don’t fit anymore, it makes sense to sell those items on online marketplaces like Ebay to make some quick cash that you can put towards paying off your debts.
4. Dip Into Your Savings to Pay Off Large Debts
A lot of people find themselves struggling to pay off their debts for years simply because of high interest rates. You see, If you take too long to pay off a debt, it can start accruing high interest, which will increase the total amount of money you need to repay.
Hence, if you have a decent chunk of money saved up, it makes sense to dip into your savings to pay off any large debts you owe in a bid to avoid paying extra because of high interest rates.
5. Start an Internet-Based Side Hustle
An internet-based side hustle can be a great way to generate some extra capital that you can put towards paying off your debts. That’s because internet-based side hustles can be done at any time of the day, hence, you can do them outside of your normal work hours.
Some side hustles you can consider are – graphic design, ecommerce, trading and even writing.
Article Submitted By Community Writer
