Last editedJul 20212 min read
Anyone can accumulate debt. We often don’t mean for it to happen, but when it does, we all want to know how to pay off debt fast. As daunting as paying off debt can seem, whether you’re an individual or a small business owner, it is possible to get out of debt fast. It just takes some pre-planning, focus, and discipline.
Whether you want to know how to pay off debt fast with a low income or you really need to work out how to pay off debt fast without a loan, it absolutely can be done.
How to pay off debt fast with a low income?
Unfortunately, some of us face the challenge of becoming debt-free while maintaining a low income. Credit card debt alone can be overwhelming to an individual who earns a low income, and trying to dig yourself out of the hole can be difficult. However, there is some light at the end of the tunnel for individuals that want to know how to pay off debt fast with a low income. Here are some of the simple debt reduction strategies that you can follow:
Stop taking on new debt – this means you need to stop borrowing from one source only to pay another. You can’t really expect to pay off debt if you’re accumulating further debt. Ideally, you’ll need to learn how to pay off debt fast without a loan.
Stop using your credit cards – Want to know how to pay off credit card debt fast? Just stop using your credit cards. This will go a seriously long way towards preventing your debt from growing further.
Budget – You can ’t wing it. Create a budget so you know exactly where your income is coming from and exactly what your expenses are. You can’t get ahead of the numbers if you can’t visualize them. Once you can subtract your expenses from your income, you can identify how much money you can put away towards repaying debt.
Make some cuts – It’s one of the more unfortunate aspects of paying down debt fast, but it’s a prudent idea to reduce your costs where you can. Go out less, buy cheaper groceries, and try not to splurge unexpectedly.
Baby steps – Pay off the little debts first before tackling the larger ones. When multiple debts hang over your head it can all seem overwhelming. But if you can chip away at the smaller debts, you’ll bring the numbers down and things will begin to feel far more manageable.
Extra income – The modern world has a very accessible gig economy filled with a plethora of jobs that can boost your income. Ultimately, earning more money is the best way to pay debt fast. When your income isn’t cutting it, it could be time to look for a boost. Besides, the fastest way to pay off debt is to have more money to put towards it!
How to pay off debt fast using a calculator
One of the best ways to coordinate your budget is to use a debt repayment calculator. A debt calculator will provide a time frame for how long it’ll likely take for you to pay off your debt. Using the debt calculator is very easy, too. All you need to do is input your debt balance, interest rate, and how much you expect to pay back each month – the calculator will return how many months it will take to clear the debt.
Using a debt calculator will help you visualize your repayments and greatly assist with paying down debt fast through manageable payments.
We can help
GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.