Whether you have just a little bit of debt, or a whole bunch, it takes time and energy to pay it off. While you’re probably well-versed in the big money moves you can make to pay off debt, don’t forget that even the little debt repayments count.
Here are 5 small ways you can start paying off your debt today.
1) Split up your debt payments
One of the simplest ways you can pay off debt faster is to split up your debt payments.
Instead of paying your monthly required debt payment, split this payment into two, three, or even four payments throughout the month.
By doing so, you aren’t having to put any more money towards debt in a given month. But you are limiting how much money you’re paying towards interest. By making more frequent payments, you are able to pay slightly more to your debt principal and can pay less towards your interest overall.
While this tip doesn’t cost you anything, it can help to save you more money in the long run.
2) Give up a regular expense
Want to up your debt repayment every single month? One of the easiest ways to do so is to cut out one regular expense and to put the difference towards debt.
Whether it’s coffee, cable, or a magazine subscription, or something else, cutting out one single bill each month is an easy way to work to cut out debt without feeling deprived.
3) Start a side hustle
So often, we focus on what we can cut out in order to put more money towards debt. But what about increasing your income instead of just cutting back expenses?
While there are plenty of side hustles that allow you to make $500, $1000, or even more money per month, it’s perfectly okay to start small. Even if you only earn an extra $50 a month, it truly makes a difference when it comes to your debt.
So don’t wait – start a side hustle today. And who knows what it could lead to?
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4) Sell items from your home
You can pay off debt while decluttering your home at the same time. Just look around! Chances are, you have dozens of items you no longer need or use. Why not sell them, clear out your home, and use the money earned to pay off debt?
It has never been easier to sell items from your home. These days, you have more options than just garage sales, Craigslist, or eBay. While those options certainly are still helpful, you can also download numerous apps, such as OfferUp or LetGo to help you sell your household items. You might be surprised at what you can earn, all while adopting a more minimalistic style.
5) Round your checking account
This may not be a “traditional” way to pay off debt, but for me, it worked. When I was paying off my student loans, one thing I did was to have a minimum checking account amount. This was the minimum amount I was comfortable having in my checking account – for me, it was usually around $1000.
Instead of focusing on every single expense, I would pay off my credit card every two weeks, when I received my paycheck. As soon as I did that, I would see how much I had in my checking account. If it it was over $1000, I would pay the difference towards debt.
This worked great for me because I didn’t have to keep track of every single expense. I also tend to feel guilty when I spent money. This method rewarded me without making me examine every expense I had throughout the month. Plus, when I had over $1000 in my checking account, it always just felt like I was paying my extra cash to my debt, making me feel more secure.
Bonus: Change your habits
Change is hard, but you can save money by making some simple and minor changes in your lifestyle. You can then use the money you save to pay off even more debt.
For instance, you can go out for happy hour meals instead of paying full-price for meals at dinner time. You can walk or run outside instead of paying for a gym membership. Or, you can focus on cooking at home more instead of eating out or grabbing takeout frequently.
Not only do these habits save money, but so often, changing your habits leads to a happier and healthier life.
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How do you pay off debt? What little moves have you made to better your financial situation?
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