How to Make Money and Get Out of Debt Quick

Make extra cash to quickly pay down debts, erasing stress and freeing up money for the things that are most important to you. Free yourself from the bondage of minimum monthly payments that barely pay more than the interest charges on your accounts. Living debt-free means being able to use the money you currently pay on your credit accounts to save for college, retirement, a long-awaited vacation, or saving it for a rainy day.

Instructions

1

Free up cash quickly by learning not to spend money you already make. Track all of your expenses over a month, writing down expenditures by category, including small purchases, such as the money you spend in the vending machine or on coffee.

2

Write down the monthly minimum payment for each debt. You will pay more than the minimum, but for now you need to determine your minimum monthly expenditures. For payments that are not fixed, write down the largest possible monthly payment for that bill. It is better to allot too much money to a bill than too little.

3

List all of your current income, using pay stubs as a guide. Subtract your monthly expenses and debt payments from your income to discover your monthly expendable income. This is money you already make that can be quickly applied to paying off debt.

4

Get rid of cable, Internet (unless you need it for your job), expensive cell phone plans, eating out, trips to the coffee shop, luxuries at the grocery store and any other unnecessary expenses. Pay for everything in cash, use coupons and ask for discounts to save money. Maintain home and car, think before you buy, and sign up for freebies by contacting consumer research companies and manufacturers.

5

Sell anything that you do not use on a regular basis: electronics, clothing, books, toys and all the stuff that sits untouched in your attic or storage shed. Look for antiques that may be worth lots of money and have them appraised. List items on Internet auction sites or Craigslist. Hold a garage sale to get rid of small-ticket items.

6

Consider selling large ticket items and quickly downsizing your lifestyle. If you have a car that is paid off, sell it and use most of the money to pay off your debts. Use a small portion to buy a cheap car to tide you over until you are out of debt. If you have equity in your home or have already paid it off, sell it and purchase a less expensive home with cash from the profit or rent until you are out of debt. Use remaining profit from the sale of your home to pay off your debts. If you need a loan to buy a less-expensive home, look for lenders who will examine the particulars of your financial situation, rather than using your credit score exclusively as a lending criteria. When looking for somewhere to rent, independent landlords may be more willing to work with difficult credit situations than larger apartment complexes.

7

Get a second job to bring in fast money, or work overtime at your current job. Write articles online, do Web designing from home, work at a local restaurant or get a job working retail. Teach music lessons, babysit or mow lawns. Check local forums for one or two-day opportunities doing manual labor by helping someone to move or complete projects around the house.

8

Cash in extra life insurance policies, if you have them. Use the money to pay off debts and then purchase additional policies once you are financially able.

9

Pay off your lowest balance first, combining your minimum payment, extra expendable income, and any money earned by selling things or performing extra work. Some experts recommend paying off the balance with the highest interest rate first, but financial guru Dave Ramsey claims that you are more likely to stay energized and intent on paying off debt by starting with the lowest balance because it offers more instant gratification. Once your first debt is paid off, combine its minimum payment with the payment on the next card and all expendable income. Keep your momentum up by crossing off each card as it is paid off and treating yourself to some free entertainment at a museum, outdoor concert or local park.