Start paying off debts with creative solutions

Even if you do not have a lot of extra money, there are ways to pay off existing debt.

06:31 28 November 2013

If you are plagued with debt, and are having trouble figuring out how to pay it all off, there are some conventional and unconventional ways to get back on track. Sometimes the most difficult part of getting started is figuring out your best options. Here are just a few ideas to help get you started.

• If you have smaller bills that you can pay easily from a savings account, and it will save you a lot of money in interest and monthly payments, then take the money from your savings account to make the payment and put at least some of what you would have been spending for your monthly payment back into the savings account to replenish it.

 

• Consider borrowing from friends or family to help you get back on track. Friends and family might be able to charge you less interest than a payday loan or even a regular bank loan. They may require you sign an actual agreement so that it is legal and clear that both parties involved understand the terms.

 

• Take advantage of balance transfer options. You can pay a variety of bills, even other credit cards off with balance transfers. Be sure that the fees associated with the balance transfer don’t end up costing you more in the long run. If you have a long term low-interest or no-interest deal with a credit card company, you might be able to quickly pay off multiple debts by taking advantage of the special offer.

 

• For larger types of debt consider refinancing mortgages, vehicle, and even personal loans. If you are able to reduce your monthly expenses as well as your interest rate it leaves you more cash flow to deal with your debts and to pay things off sooner.

 

• You can consolidate with a personal loan.