How To Pay Off Debt
If you have a lot of debt, chances are you have a tight budget. Living on less than you need and trying to pay off debt is no fun task, but it is possible. You can pay off debt with perseverance and determination on any income. Are you trying to get creative and come up with unusual ways to pay off debt? Let me do the hard work for you! Here are 7 unusual ways you probably have not thought of before to help pay off debt on your tight budget.
1. Donate Plasma
If you are really stretched and can’t afford an extra dime, donate a few hours a week to save lives. You can earn an extra about $50-week donating plasma at your local plasma bank. Keep that money on the card they give you and save it up until you can pay off one debt.
2. Stop Paying on Credit Cards
This may sound very unusual, but it can work in your favor. If you stop paying your credit cards, the companies start to panic a little. They don’t want to risk you filing bankruptcy and will offer you options such as canceling your card and taking all the interest off. This means you can make interest free payments. You can also call and negotiate payoff amounts at this point.
3. Ask for Forbearance
If you have high-interest loans, you can call and ask for forbearance. Many times you can get a forbearance based on your income or because you are going through a hardship. Use that time to save up what you would normally pay on your loan to pay off another small debt.
4. Pay off Small Debt First
Now, this might not fall into the category of unusual ways to pay off debt but focus on the smaller debts first. This will help you get motivated and feel a sense of accomplishment when you get it paid off. If you can put an extra $5 a week towards one small debt, you can pay it off much quicker. Once that debt is paid off, use the extra money you would have paid to that bill to plop on the next debt.
Related: How the Debt Snowball Method Works
5. Call Your Debt Collectors
Since we are going with unusual, get on that phone. Did you know you can ask for lower interest rates, forgiveness programs, or ways to make your payment less? The worse they can say is no. Explain your situation and ask for help. If you can’t get through to the person you are speaking with, talk to a supervisor, and their supervisor, and so on. Once you get to the top of the totem pole, you can get just about anything accomplished.
6. Tackle High-Interest Debt with Collateral Loans
Your ultimate goal is to pay off all debt, but sometimes that is not possible if you are paying so much towards interest every month. Instead of just paying the minimum balances, why don’t you put a little more towards your payment(s) by making extra money from collateral loans? In Atlanta, there is a company called Chapes-JPL that is the Nation’s premier jewelry lender.
Chapes-JPL offers jewelry, watch, vehicle loans, and more. The great thing about using their services is the fact that they provide loans at a low-interest rate in their private and secure financial offices. This is very helpful for someone that does not have a good credit report due to a lot of debt or high balances because Chapes-JPL does not require credit checks, tax returns, job verification, or personal references. Established in 1980, Chapes-JPL now serves over 18,000 customers nationwide providing low-interest loans and also buying valuables outright, so check them out if you think this could help you pay off your high-interest debt.
7. Hide Money in Random Places
If you just can’t save money, start taking out cash from your bank. Hide your cash in random places such as your sock drawer, a shoe, or your kid’s closet. Hide money all over the house, so you don’t really remember where you put it. Once you find it all, you will have enough to pay off a mountain of debt.
What are you waiting for? Be different, be unusual, and start paying off that debt. It will only benefit you significantly in the long run.