6 Ways to Pay Off Debt Faster Without Budget Cuts

Figuring out how to pay off debt fast would be a godsend.  I know there are many people out there struggling to pay off their debt.  But the debt just keeps piling up and it seems like a never-ending battle.  

Even though you are continually making your monthly payments, it just doesn't seem to make a dent in your debt.

Chances are most of your payments are going to interest and not to your principle.  That’s why your debt hasn't really gone down.  

To fix this you need to pay more than your minimum payments.  One way to do this is to make some budget cuts but that may not be so easy.

I get it.  There may not be any room in the budget.  And many people don’t want to give up the things that they enjoy and the amenities that they are used to. 

Well, there are ways in which you can still pay off your debt fast and keep your amenities.

Your budget doesn't have to be a part of the equation.  I have some quick tips that could help you pay off your debt faster without having to cut things from your budget.

No New Debt

This first one may be kind of obvious but hard to actually implement in real life.  If you are trying to pay off debt, adding more debt is simply counterproductive.  In order to turbo charge your debt pay off, you cannot add on any more debt. 

Adding more debt just extends your timeline and can make it seem like you are not making any progress.  If you are really serious about paying off your debt once and for all, you need to take steps to ensure that you will not need to take on more debt.  

This means having enough saved up in your emergency fund should anything come up.

For those that need more extreme measures to break their credit card habit, you may want to consider putting your cards in Ziplock bags and freezing them in a bowl of water.  

That way you have a sufficient, albeit mildly dramatic, way to stop yourself from reckless endangerment due to too much swiping.

Get Your Interest Rates Reduced 

Did you know that the credit card companies would actually reduce your interest rates?  This has worked for many people in the past.  So I say give it a try.  Call up your credit card companies and ask them to reduce your rate. 

Use any leverage you have such as being a long time customer or someone who pays on time every month.  Especially with the way that things are now, with so many unemployed due to COVID, it seems more likely that they would do it.

Sell Unnecessary/ Unwanted Things

I’m sure there have been times when you have received a less then useful or wanted gift from a well-meaning relative or friend.  Well now is the time to get some good use out of it and some good money.  

Sell it on Ebay, Amazon, wherever and then take that money and apply it to your debt. 

This is also good for that fancy slower cooker you bought 3 years ago that is still in the box under the kitchen sink. Yup...That one.  

Or all those clothes that have been taking up space in your closet.  They have been sitting around long enough. It's time to put them to work.

The best part of doing this is that not only will you be making some money on the side but you will also get a nicer, cleaner, less-cluttered house.  Spring cleaning bonus!

Renting Out Your Personal Property

They all seem pretty easy to set up.  Just list your car on their site, set your prices and rules, and wait for customers to come to you.  I’ve never actually used any of these so let me know how it goes if you decide to do it!

Are there other things around the house you can rent out?  Speakers, mics, computers? Go have a look-see.  I’m not going to lie.  I’ve totally considered renting out my Costco card to friends and others.  

After all, if I’m the one footing the bill and everyone else gets to go for free, how fair is that?

Increase Your Savings Rate

The fastest way to pay off any debt is to increase your savings rate.  Did you know that if you increase your savings rate from 10% to 15% and use it to pay off your debt, you could pay off your debt faster by 30% or more? 

Say for instance you are $10k in credit card debt that has an APR of 17%.  You are only making $24k per year and so have devoted 10% ($200/month) to paying off your debt.  

At that rate, it will take you 88 months, or 7 years and 4 months to pay off.  

However, if you were to bump up your payments to $300 a month, you could pay it off in 46 months, 3 years and 10 months.  By increasing your savings rate by just 5%, you cut your pay off time in half!  

Even something as small as an extra $15 a month, would save this person almost a year’s worth of interest and fees.  And that’s only a 0.0625% increase in savings.  Just think what a 1%, 2%, even a 10% increase would do.

Increase Your Income (Side Hustles Come Thru!)

Last but certainly not least, one way to pay off your debt with the quickness is to increase your income.  There are just 4 ways you can go about doing this:

1.  Get a better paying job
2.  Get a second job
3.  Ask your boss for a raise
4.  Side Hustle

Job-hunting is always a pain but if you are looking to get some extra cash, you are going to need a better paying job or a second one to help boost your income.  

Of course, you can always try gathering the courage to ask your boss for a raise but if that fails, know that side hustles are always there for you. 

Whether it’s dog walking, baby sitting, teaching online, or doing surveys in your spare time, side hustling can provide you with enough coins to pay off your debt in half the time.

All in All

By turbo charging your debt pay off you can become debt free so much faster.  You may find that after you have paid off your debt it is actually a lot harder to stay debt free.

Getting out of debt is one thing remaining debt free is a whole 'nother story.  Once you are debt free, it can be tempting to go right back into debt cause: Hey! You have so much money now!  

But don’t get pulled to the Dark Side.  The Force is strong in you!

Sidenote: I love Star Wars! (As if you couldn't tell) 

Ok, anyway, real talk, in order to stay debt free, you are going to have to make some changes.  You can’t go back to how things were.  You‘re going to have to change the way you view credit cards and debt.  

If you do decide to continue using your credit cards, remember to pay it off in full every month so that you don’t get charged any interest.

Good Luck!