Easy Ways to Get Out of Debt

Being in debt can make you worry, causing you to lose sleep, fight with your loved ones and start to feel that your life will never improve. There are easy things you can do to help you quickly lower your debt obligations. The sense of freedom may inspire you to do everything you can to live a lifestyle where you are debt-free or keep the debt manageable. Once you enjoy time without all the debt and the stress that comes with it, you will never want to go back to that burdensome, out-of-control feeling.

Downsize Your Home

Many people are in debt because they bought too large of a home, not realizing that just because they can get a loan for a home does not mean they can afford it. Sell your home and move to a smaller, less costly rental home or apartment. You can downsize for a year or two to get out of debt, save an emergency fund and save a nice down payment on another home so that your future mortgage payments are not as expensive.

Sell Your Car

High car payments are common when people are in debt. Sell your car to get rid of the payment. Buy an inexpensive used car with cash. If you are a two-car family, consider downsizing to one car. You can pay the amount you were spending on a car payment towards your debt each month and once the debts are paid, you can use the extra money to build an emergency fund and a savings account.

Garage Sale or Online Auction Sites

Have a huge garage sale and get rid of all the junk and extra stuff that clutters your home. Price your items fairly; you are not trying to recoup the price you bought the item for, you are just trying to get rid of it and make some extra cash, according to the Dave Ramsey website. Alternatively, you can sell items online at auctions sites such as half.com, eBay or on Craig's List. Take good pictures of the items and show any defects they might have. People are leery about purchasing items online unless the pictures are clear and show that the item is in good condition. Use the cash you make to pay down your debt.

Part-time Job

Getting a part-time job while you are reducing your debt is an excellent way to pay bills off quickly. Part-time income even for just a few months will lower the debt and your stress level. Delivering pizzas or newspapers, babysitting or being a telemarketer are all part-time jobs that are readily available and will help you reduce your debt and build your savings.

Cut Up Credit Cards

Cutting up your credit cards and always using cash for purchases is the best way to reduce debt quickly. This forces you to save for luxury purchases and gives you plenty of time to determine if you really need the item.