Debt happens in a variety of ways, whether it is enormous medical bills or unwise spending on a credit card. Regardless of how you found yourself in debt, there are options to help you get out of debt. Speeding this process up can help alleviate yourself stress that financial hardship causes. Making rash decisions is never wise, as you could find yourself further into debt. Quick fixes usually come with large interest rates, so these should be avoided.
The unfortunate truth is not all people are financially educated and might make poor decisions with their money. Self-education is the best option for most people but hiring a financial advisor is another good move. You might just be misappropriating your money and need a few tweaks to find yourself working your way out of debt. The most important aspect of this is being proactive about saving/earning. Below are tips to help you get out of debt in a timely manner.
Freelance To Earn Additional Income
Freelancing is something that so many individuals do to earn extra income monthly. You can find a variety of freelance gigs that allow you to earn on your own schedule. Certain skills are valued more than others, generating a high hourly rate. Web design and freelance writing are two examples of skills that can earn money regularly.
Building a great portfolio as a freelancer can help showcase your skills on platforms like Upwork. Platforms like this help connect clients with freelancers while providing protection for both parties. You do not want to work for hours only to be refused payment. Freelancer platforms help eliminate this occurring which is why most are worth the fee that is charged per hour/per project.
Figure Out What To Do With Tax Debt
The IRS is the last entity that you want to owe large amounts of money. Even celebrities have gone to prison, like Wesley Snipes, due to tax evasion. Working out an offer in compromise might be the best option for yourself. The offer will be less than you owe the federal government that can be accepted. Payment plans are also available for tax debt, but the worst thing you can do is ignore this debt.
Create A Tight But Realistic Budget
The majority of people do not have a budget that they write physically. Setting this budget is very important as you can allocate this money towards your debt. Targeting debt with the highest interest rate is very wise. You will still have to pay other expenses like a mortgage or car payment. You might find that by listing out what you spend that you can find a few hundred dollars that can be saved. Using technology to help budget is something that you really need to consider. There are apps that will shame poor spending habits, and some people need to be shamed during their 10th Starbucks trip of the week. Other apps help invest extra change, but this change should go to your outstanding debts.
Try Driving For A Rideshare App
Driving for a rideshare app can allow you to make some supplemental income. You likely do not want to do this full-time but can take advantage of certain parts of the week. The airport can be a very good place to find trips that could potentially be quite long. Parking near an area that is known for lively nightlife is also important. The only drawback of parking near these places is that you might have to deal with extremely inebriated passengers. The surges on apps like Uber can allow you to earn exponentially more per trip. The demand for rides causes these surges in a small area.
Diving Into The Service Industry For A Few Months
The service industry is not for everyone, as servers or bartenders have tough schedules and inconsistent income. Finding a few nights a week where you are going to be able to work can allow you to decrease your debt. Make sure you are putting aside money for taxes as you don’t want to create debt to the state or federal government. There is a demand for servers for nearly all shifts, and this can be temporary.
Debt is something that can feel like it is actively putting pressure on you and crushing you. You do not have to live like this, as a plan to get out of debt can help reduce your stress. Seeing that there is a chance to live debt-free can allow you to continue to motivate yourself to save.