According to the statistics, about 80% of Americans live with debt. An average American has about $6,000 in credit card debt and over $24,000 in non-mortgage debt, which includes car loans. Debt not only has an impact on your finances but can also destroy future plans. The more debts you have, the more challenging it is to manage them. In this article, we are going to discuss the most common and effective ways to handle debt.
Get a Second Job
One of the best and most effective ways is to increase your income by getting a side job. We all have skills or talents that we can monetize. For example, you can try to do babysitting, walk with someone’s dogs, clean houses, and other things. It can be a temporary and part-time job that you can do on weekends.
Consult a Credit Counselor
There are numerous counseling companies that provide consulting services. You can contact one of them and schedule a consultation with a credit counselor in order to find an effective way to handle your debt. It is a great option for those who have been trying to handle it for a while, but their strategy has not brought any results yet.
Sell Some of Your Personal Belongings
If you need money as quickly as possible, selling stuff may be a good idea. We all have things that we have not used for a while and that we can sell in order to get some cash. There are multiple online services that you can use for selling: eBay, Craigslist, or Marketplace on Facebook. You can also take your stuff to a pawn shop or organize a yard sale.
If your debt is unmanageable, and your situation is getting worse financially, it may be a good idea to declare bankruptcy. However, even though it is a good strategy in general, there are certain disadvantages you need to take into consideration. One of them is the negative impact of bankruptcy on your credit score.
Change Your Habits
You may have expensive habits that need to be changed in order to get rid of debt or to reduce it at least. Take some time and analyze what you spend money on. Do you buy coffee from a coffee shop every day? Or do you smoke? Do you like eating out? If you stop doing any of these things, your financial situation might get better quickly.
Get a Lower Interest Rate
If you contact your creditors, you may get a lower interest rate, which is quite helpful. Usually, creditors agree to do that, especially if you are not in a terrible financial position, look reliable to them, and have been always making your payments on time.
Sell Your Property
If you need a large amount of money to pay off your debt, you can consider selling your home. However, you need to think about the selling strategy first. Most homeowners decide to sell their property the traditional way, but there are certain disadvantages to think about. Selling the traditional way with a realtor usually takes longer (up to several months). Moreover, there is also a realtor’s fee you have to pay. In addition, you will have to complete repairs and renovations before listing your home.
However, there is another alternative way of selling a home that many homeowners do not know about — selling it to a cash buyer for cash. The main advantage of this method is that it is quick. In most cases, it does not take more than two weeks to close a deal. Moreover, home investors pay you cash, meaning that you will receive your money immediately and can use it for paying off your debt right away.
Sell Your House Fast to We Buy Houses Cleveland
If you own a home in Cleveland, OH, and you want to sell it to cover your debt, then We Buy Houses Cleveland is ready to help. We are a local real estate investment group with a passion for real estate. We buy houses in Cleveland, OH, and other nearby cities and do all we can to make this process work for our clients. If you have any questions about the process, or you want to schedule a consultation with us, feel free to give us a call or schedule a walkthrough online.