No one likes to be in debt, and many people spend a lot of time, energy and effort working out ways to manage their finances in the most efficient way possible. However, if you’ve spent your whole life thinking and operating a certain way, learning to be more creative about your debt reduction processes may not come easily. If you’re not sure of the best way to maximize your income and minimize your debt, the hints and tips below may help you out. You can also learn a lot about reducing debt quickly from wealth creation experts. Many websites offer free information on this very subject. To find out more about creative debt reduction hacks visit wealth creation training organizations like Knowledge to Action.
Add More Income Streams
The more money you can get flowing in the door, the more you can pour into your debt. This can means anything from taking a second job out of your regular work day hours, to setting up some sort of an income with an online business. Selling your spare stuff can raise more cash; so can ensuring everyone in the household contributes to your debt reduction targets. If one of the members of your household can’t get out to work, be they a stay at home mum or a teenager, see what else they can do to either raise money or cut expenses. Can the teenager take on some babysitting gigs? Can the stay at home mom work from home at all?
Cut Back on Expenses
Cut costs to the bone. Work out your basics; transport, food, rent, utilities, and add a little fat in there if you can (no more than 10%) – and draw your line. It’s tough living on a stringent budget but remember that it doesn’t have to be forever. Once you’re free and clear of the debt bogeyman, you can adjust your spending and lifestyle accordingly – although it’s a good idea to avoid traveling on the debt treadmill again. Take stock of all your household expenses and draw up a budget for everyone to work within. Involving everyone in your household is a good way to ensure a collaborative effort.
Look at conquering debt as a challenge; see how fast you can do it. Get your household together and fire them up; plan a group reward for when you achieve your goal. If you’re taking on a big pile of debt, set up some milestones to achieve along the way with some rewards that cost very little. Make sure your goals and mini-goals include both amounts raised and/or saved, as well as time frames met or exceeded. Perhaps a picnic somewhere could be your group reward, or a celebration at home where friends come by and bring a plate of something yummy.
When taking on your household debt it pays to think creatively. Try seeing the project as a challenge and get everyone in your household involved. That way you can all share in your success.
Got any of your own debt reduction hacks not mentioned here? Share your best tips with others in the comments box below.