Nobody wants to be shackled with debt all their life. But, getting out of this financial predicament is not easy. It takes a great plan and a huge amount of willpower on the side of the person who found himself or herself in debt to leave the distressing situation he or she is currently in. Debt sucks. It sucks the life out of people. This is why some people look for the best and fastest way to get out of debt to regain their sanity and take back control of their life again.
Debt is easy to gain but very hard to pay off. Some people were able to utilize their debt to get rich but most people used credit to acquire goods and services that they cannot pay outright with money. Charging purchases to credit cards take only a few seconds while raising money for cash payment will take days or weeks to accomplish. Credit cards give people the means to pay for something that they cannot easily get from their paycheck alone. When they spend more than what they earn, it is easy for them to amass debt due to non-payment of credit cards.
Other factors that may propel a person to get into debt includes:
- Expensive medical treatment that eats out one’s emergency fund, income, and other assets.
- Unplanned major home repairs due to a natural catastrophe like fire, flood, earthquake, etc.
- Sudden loss of job without savings to finance daily needs while looking for a new one.
- A business venture that runs on credit and loans.
- Missing payments and incurring penalty fees that accumulated after some time.
Even people who can pay for their bills and loans can fall into debt by not paying on time, resulting in the pile-up of unpaid amounts plus interests and penalty fees. It’s not only those who found themselves out of money that can get into debt, but even people who are irresponsible in managing their finances can also find themselves owing companies too.
Unfortunately, not everyone with debt can pay what they owe quickly. Some have no money to pay up immediately while some refuse to confront the reality that they have to pay their creditors. But debt cannot be ignored for long and it will not go away after years or decades, it will continue to affect a person’s credit score and eligibility to apply for a loan. It can also influence an employer’s decision when hiring employees. Not only that, debt causes stress in life and hinders a person’s freedom to use what he earns whenever he likes. He will always be at the mercy of his lenders.
How to Get Out of Debt Quickly
Whichever course an individual takes to resolve his debt problem, doing it himself or hiring a financial advisor, removing debt completely will not happen overnight. For those with no money and assets to use for repayment, it will take years or even decades. However, there are several methods to shorten the debt payment period – no matter one’s financial status. If a person in debt knows his rights under the law, he may be able to get out of debt without paying a dime.
The key is knowing one’s rights and what are the options available out there. It is worthy to do extensive research when someone founds himself in debt. Knowledge is power after all.
Learning how to deal with debt collectors and how to exercise one’s right as a consumer can make debt repayment less painful and more achievable. If lacking or no funds to pay off creditors, there are many ways to get more money in an honest and legal method. All it takes is to make sacrifices such as extending working hours, working on weekends, giving up things, and making drastic changes to one’s lifestyle. They may be difficult to do but they’re proven effective to help eliminate debt permanently.
Many organizations and government agencies can aid a person looking for ways to pay off debt. Some of them help by providing loans while some offer information on how to reduce debt balance, deal with debt collectors, and other stuff related to debt management and repayment. Read more about debt payment strategies and the government agencies assisting in getting out of debt in the succeeding pages.
What is the Best and Fastest Way to Get Out of Debt
Paying outright is the best and fastest way to get out of debt. Yet this is not feasible to most people especially those with low income or has completely run out of money. They would need a combination of two or more strategies to at least take a chunk out of the total amount that they owe.
Paying debt needs careful planning as well. A smart soldier never goes to battle without a plan. He goes to war to kill his enemies and survive to tell the story. Someone paying the debt should also be prepared for what comes next after he completely paid his debt. One has to plan how to pay his debt efficiently to gain financial freedom and stay off debt forever while saving for his future at the same time. There’s no sense in putting out the fire and starting a new one again. He must have a debt repayment plan and a long-term plan.
Why Create a Debt Repayment Plan and Long-Term Plan
Having a debt repayment plan gives the debtor a clear picture of the total amount that he owes and how he is going to pay them all.
A debt repayment plan includes listing all the accounts that need to be paid based on the order of importance. This way, the debtor will be able to pay more on the one on top of the list and only pay the minimum for the rest. When the priority account has been paid off then he could add the amount in paying the second account in the list. This method goes on until the last account is completely paid.
It is also important to think about the sources of the payments. One can earn extra money by taking a second job or doing a side hustle. Selling things that are no longer used or one can live without will bring in more funds to pay the creditors. These will be discussed further in the next articles.
In addition to a debt repayment plan, a long-term plan must be designed for an individual’s specific needs. It’s one of the reasons why some people hire a personal advisor to help them pay off their debt successfully and make a viable plan for their future. How to get out of debt quickly is first and foremost, yes, but there should also be a plan for the future that will leave a person debt-free for years and years to come.
The Bottom Line
Who doesn’t want the best and fastest way to get out of debt? Of course, everybody wants freedom from the shackle of debt as fast as they can! But, the lack of means to pay what was owed can make debt repayment go on for years or decades. Strategies about paying off fast are available out there but their success and effectiveness depend on the person who is applying them. Whatever strategies on how to get out of debt quickly are being applied, at the end of the day, only those who are determined to gain financial freedom and have the willpower to stick to the plan will be able to find deliverance.