It seems like a quick fix, but adding on to what you owe only makes it harder to pay off the rest of your debt. If it calls for your credit card to burn, then let it burn! You can’t be giving yourself another burden.
Of course, keeping your finances afloat will call for an open mind, so take a look at the four following finance solutions before committing to more debt.
Don’t Budge Yet, Just Budget
Interest rates can leave you paying off debts for longer than you’d want to. That’s why it’s important to note which debts do more damage so you can deal with them first.
Say there’s a no interest loan that you’re paying off and some credit card debt that you’re also trying to whittle down. It would be worth your while to increase the monthly payment for the credit card debt first while making minimum payments on the zero-interest loan.
Budgeting will help you see how much money you can put towards your savings so you can build up a nest egg on the side as well.
You can’t always rely on traditional sources of income, especially in the times we’re living in. Thankfully, there are companies and individuals all over the world in need of your skillset.
If you have reliable internet access, you can make money from home while working at your own pace. People get paid for proofreading and consulting work every day, and some even do it while lying in bed!
If you can make extra money from home, you won’t have to take up more debt, and given the nature of remote work, you can take up as many gigs as possible.
This boosts your earning power, making you better equipped to deal with the debts you already have.
Use Windfalls Wisely
Sometimes you get a boost to your finances that you didn’t expect. Before you get excited because you got some off-the-books money, why not put it towards your savings or debts?
If you get a pay increase, that’s no excuse for you to start living large. Use whatever extra cash you get to better your financial situation, and before you know it, you’ll be free to go to town on that bank account.
Whatever side gig you can think of – whether it involves consulting or freelancing, or even ride-sharing – use that as a source of financing.
Surely you have some stuff lying around that you don’t need or use anymore – why not put those things up for sale? You can use the proceeds on something you actually need, or you can buy yourself some breathing room in your finances.
Rent Out Your Space
You probably don’t need all the space you have at your disposal. Consider renting out the extra room. It’s a great source of passive income and consistent cash flow which could go a long way toward helping you tighten up your finances.
People are even renting out their garages these days, so no matter how small your space is, it can be monetized. See what you can rent out, even if it’s just for a few months – temporary income can still make a huge difference.
When it comes to debt management, knowing all your options is necessary. Whether you’re paying off credit cards or a mortgage, you need to know what else you can do before cornering yourself. We hope these tips will help you take a step in the right direction!