5 Things You Can Do To Get Out of Debt - Dave's Wallet

5 Things You Can Do To Get Out of Debt

The total consumer debt stands at $13.86 trillion. Based on this, we can say that every American is under debt. Many of us have never officially taken a loan, but since we use credit cards, it’s safe to say that most of us owe someone money.

So, what can you do to get rid of debt? Here are some tips:

  1. Avoid Debt Altogether

The best way to get out of debt is to avoid debt altogether by avoiding loans. You can also get rid of credit cards.

  1. Save or Earn Money

You will never be able to pay your loan if you do not have enough money, so consider getting a side gig or reducing your expenses.

  1. Try to Negotiate Terms

Debt settlement can be an option if you meet the requirements. Get in touch with your debtor and discuss your options.

  1. Know Which Debt to Pay First

You can choose from two popular methods: 

  • Snowball Debt Method: It involves paying the smallest debt first. You will end up paying more using this method but it will keep you motivated since you will see a reduction in the number of people or organizations you owe money to.
  • The Avalanche Method: It involves paying the most expensive debt first. It helps you save money since you will pay less in interest but it can be difficult to stay motivated using this technique.