Editor’s note: This story was originally published here penny hoarder.
Your reasons for being in debt are as unique as you are. Whether it’s due to student loans, mortgages, credit cards, or a combination of these, debt can accrue to all of us.
The good news: The way you get yourself out of debt can be totally unique (and a lot more beneficial). There are well-known debt payment strategies such as snowball And avalanche Methods.
We’ve also included some of our favorite methods that penny hoarders have used over the years to help them get out of debt.
debt repayment strategies
Debt payoff strategies come in all sizes – from ultra-focused to intensive”every little thing helps“Ways. Luckily for us, penny hoarders are generous in sharing their ideas. Here are five innovative debt payoff strategies to inspire you.
1. Find a money friend
Just because you’re looking to get out of debt doesn’t mean you have to do it alone.
Friends Saw-Sha Hill and Sha’Crecia Terrell decided to work together to pay off their combined $70,000 in credit card debt.
They started writing down goals they wanted to achieve each month, then took over someone else’s credit card to block the temptation to make impulse purchases.
Holding each other accountable paid off: In just one year they paid off $27,000 of their joint debt and encouraged each other’s new, healthy spending habits.
See how a accountability partner You may get help in repaying your loan.
2. Get Multiple Side Hustles
Eventually, you run out of ways to cut costs. You can either resign yourself to a life stuck in debt or get more money.
When former Penny Hoarder staff writer Lisa Rowan added up her total debt, she hit a daunting total of $51,679. But instead of hiding his head, he looked for ways to earn extra money to pay off his debts.
At her busiest times, Rowan juggled two 20-hour-per-week positions, her own shop, a gig packaging stationery, and numerous freelance assignments.
By combining the extra money with strategies like using a balance transfer card and cutting expenses, she found her way to paying off $30,435 in 18 months.
It’s easier than ever to find a side hustle that works for you. In fact, here’s a list of some of our favorites that you might enjoy do it from your phone.
3. Round the numbers
All those kinds of trends can be beneficial when you get your account balances organized into nice, rounded figures.
Penny Hoarder community member Marlena Montalvo posted that she was halfway to her goal of paying off her mortgage in eight years. His secret? A combination of rounding up payments, making double monthly payments when possible, and using the 00.00 concept.
So if she checked her balance and it was $1,581.64, she would have to pay $81.64 to bring the balance up to even $1,500.00.
“Little things like this make a big difference,” Montalvo wrote.
4. Keep track of everything you spend
Post-it notes have stuck around for a reason: It’s easier to remind yourself when you see it in front of you. The same applies for financial goals.
Tyler and Ashley Philbrook paid off $6,000 of more than $25,000 in credit card and student loans and saved more than $10,000.
Although they thought they were sticking to their budget each month, it wasn’t until Tyler created an Excel spreadsheet to track every expense that they realized they were spending more than necessary each month. She started a budget journal to track daily expenses, which helped her see that she saved a lot of money by cooking at home.
If you’re new to this kind of thing, prefer an app like rocket money It’s an excellent all-in-one way to organize your finances. It helps you track your spending, set budget goals, and ultimately save money. Rocket Money can also help you negotiate lower bills and cancel unused subscriptions.
5. Get organized with apps
Paying off debt doesn’t have to be a huge task – sometimes just a little money is needed to help. (Sorry, I couldn’t help myself.)
If you want to pay off debt in a systematic way that doesn’t take a lot of effort, let an app do the work for you. Another one of our favorite finance apps King. It lets you track your account balances, transactions, and investments in one place, giving you a more complete view of your finances.
Are you having trouble keeping track of your expenses? With Monarch, you can track it by merchant or category. The app also features bill sync, which allows you to view credit card balances, minimum due payments, and other recurring expenses within Monarch.
And by swiping to review, you can view transactions with a quick swipe left or right. This way, you’ll always know where your money is and where it’s going. It doesn’t get more organized than that.
