3 Creative Ways to Get Out of Debt

If you’re in debt, you’re not alone. In fact, according to a report from the Federal Reserve, the average American household owes $137,063. That’s a lot of debt! And it’s no wonder why so many people are struggling; after all, the cost of living is skyrocketing while wages remain stagnant.

Thankfully, there are some creative ways to get out of debt. While these methods may not be traditional, they could help you pay off your debt faster and save money in the long run. So if you’re looking for some out-of-the-box ways to get out of debt, read on!

3 Creative Ways to Get Out of Debt

Refinance Your Debt with a Personal Loan

If you have high-interest debt, one of the best ways to pay it off quickly is to refinance it with a personal loan. Personal loans typically have lower interest rates than credit cards, so you’ll be able to save money on interest and pay off your debt faster.

Plus, personal loans often have fixed interest rates, so your monthly payments will be the same every month, making it easier to budget for your loan repayment.

If you have a small business, consider applying for a small business loan to cover higher interest debts your business may have.

Use a Balance Transfer Credit Card

Another creative way to get out of debt is to use a balance transfer credit card. Balance transfer cards offer 0% APR for a promotional period (usually 12-18 months), which means you won’t accrue any interest on your balance during that time.

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This can be an excellent way to save money on interest and get out of debt faster. Just be sure to make all of your payments on time and in full; if you don’t, you could be charged retroactive interest at a high rate. For more tips, read about the costly credit card mistakes nearly everybody makes – and be sure not to make those mistakes!

3 Creative Ways to Get Out of Debt

Snowball Your Debt Payments

The debt snowball method is a strategy for paying off debt in which you focus on paying off your smallest debts first while making minimum payments on your other debts.

Once you’ve paid off your smallest debt, you “snowball” the money you were using to make that payment into the payment for your next smallest debt—and so on and so forth until all of your debts are paid off. While you’re doing this, you can come up with creative ideas for finding money to get out of debt.

The advantage of this method is that it keeps you motivated by giving you small wins along the way; as you pay off each debt, you’ll feel a sense of accomplishment that will keep you going until all of your debts are gone for good.

If you’re in debt, don’t despair—there are creative ways to get out! From refinancing with a personal loan to using a balance transfer credit card to snowballing your debt payments, there are plenty of options available to help you get out of debt and back on solid financial footing.

So take a deep breath and choose the method that makes the most sense for your unique situation—you’ll be glad you did!

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