Being in debt can be stressful for many people. The burden of owing money to creditors can weigh heavily on an individual, causing financial stress and anxiety. It's important to take proactive steps to address and manage debt to reduce stress and regain control of your finances. Join us as we assure you that getting out of debt is possible and provide you with 10 helpful tips to ditch the debt. 

Is It Possible to Get Out of Debt? 

Of course! It is completely possible to get out of debt, however, it will require commitment, discipline, and a plan of action. Below, we have listed some tips to help you get started. 

10 Tips to Ditch Your Debt 

1. Make a budget and stick to it. This will help you better understand where your money is going and where you can cut back. 

2. Prioritize paying off high-interest debt first. This will save you money in the long run. 

3. Make more than one payment monthly. If you find yourself with extra cash, put it toward your debt so you can pay it off faster.  

4. Pay more than the minimum required payment. Not only does this help you pay off your debt faster, but it helps you save on interest. Check the terms of your loan to determine whether additional fees or other penalties may apply. 

5. Consider a debt consolidation loan to lower your monthly payments. Consolidating debt by taking out a loan allows you to have a single payment monthly, which may make it easier to keep track of all that you owe. 

6. Avoid taking on new debt while paying off existing debt. It can be easy to fall into the same habits but try to limit your spending where you can and avoid making unnecessary purchases until you’re in a more stable place financially. 

7. Try to increase your income by taking on a side job or freelancing. Look for part-time jobs online or search for opportunities within the community. There are also reputable websites where you can sign up to offer your freelance services, such as copywriting, designing, programming, translating and more. 

8. Consider reaching out to a financial advisor or credit counselor. They can provide you with additional help and guidance when it comes to lowering your debt. 

9. Stay on top of your debt. Consider utilizing online bill pay and bill reminders to ensure you never miss a payment and have to pay a late fee.  

10. Refinance your debt to a shorter term. If you’re in a hurry to pay off your debt, then shortening the length of your loan could be a way to do so. You may qualify for a lower rate, or shorter or longer loan term, but keep in mind that shortening your loan could increase your loan payments. 

It will take time, effort and persistence but with dedication, you can get out of debt and regain control of your finances. And if you’re just not sure where to start, give Fairfax State Savings Bank a call!