5 Ways to Pay Off Debt Quickly & Make Money
One thing that is common to hold us back in building financially for the future is debt. It is easier than many think to quickly become trapped in a downward spiral that sucks any chance of a secure future with it. We know the need to have a solid financial base in life, planning for short-term and long-term goals. Here are five ways to pay off debt quickly and make money at the same time.
Pay Off High-Interest Finance First
Paying off high-interest debts may seem like obvious advice, but we must carefully consider which debts to prioritize. It may seem like eliminating the highest monthly payment first would make sense. However, we need to look at the longer-term impact of this strategy. You might find you have a few smaller debts, such as credit or store cards with high-interest, and paying the minimum of these has an almost negligible effect on reducing the balance. Pay these off first and it's a good first step to becoming debt-free.
Carefully Consider Consolidating Debts
Consolidating debts into a single loan can be beneficial in a debt elimination strategy. Benefits of this include making multiple payments condense into a single monthly payment, allowing easier tracking of your finances. If you have lots of high-interest accounts, you might find that it will save you hundreds or even thousands throughout the loan. Finally, unlike with credit cards, you will have a definite end date for the finance to be paid off and can plan towards that date.
Make Money Online
We've concentrated on reducing outgoings, but the real way to end up with more money is to get more money, and this year, we have seen ways to make money during quarantine. The one that we'd like to concentrate on is trading in cryptocurrency. There are two ways of doing this, mining for new coins, or to buy and trade in currencies. Mining is the more complicated of the two as it involves solving complex mathematical equations to produce coins, but there is an automated way of achieving this. Trading them is probably more time consuming as you need to keep track of the rise and fall of the prices of whichever currency you are holding, but you can track these in apps and even set some to alert you when certain prices are reached.
Ask for a Raise or Get a New Job
As we're looking at ways of making more money, why deviate from what you currently do? In your day job, it's always important to look for progression opportunities. If you are performing well, it is never a bad idea to ask your boss for a raise, but do so in a structured and evidence-supported way, approach them with statistics or examples of how your performance has benefited the company. If this approach fails, and you are as good as you consider yourself to be, keep an eye on the job market, someone else will eventually pay you what you are worth.
This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.