9 Ideas For Getting Out Of Debt In 2018

We had the opportunity to sit down with Dr. David L Tuyo II, DBA, MBA, who serves as the President and CEO of University Credit Union, to discuss some common questions related to managing personal financial debt. Dr. Tuyo has been recognized by…

Are your debt problems spiralling out of control at the moment? Are you concerned that you will get into financial trouble during the next few months if you don’t act fast? Then you must take a few moments to read through this post and adopt some of the suggestions. Most people encounter debt issues at some point during their lives, but it’s how you deal with the situation that determines the outcome. There is a decent chance you can turn your circumstances around and get back on track if you make the right moves in 2018. Regardless of how you got into debt and why you needed the borrow the cash, the same rules should apply. So, consider some of these ideas, and then put the wheels in motion.

Getting Out Of Debt

Pay more than the minimum amount

There is a decent chance that you probably make the minimum payments every month on your credit cards and loans. That is a terrible idea because it could increase the interest rates you pay, and it could also extend the repayment term for many years. Even if you only manage to give your creditors a few dollars more than the minimum amount; you will notice the improvement straight away. Ideally, you need to start paying as much as possible towards your debts, and there are some excellent suggestions for increasing your income below. Just make sure you never make the minimum payment because you could remain in debt for more than a decade. That is probably one of the most significant mistakes people make, and so you need to avoid it.

If you have substantial debts, there is a chance you might be able to consolidate them into one affordable monthly payment. You’ve all seen those adverts on the TV for debt consolidation companies, right? Well, now is the best time to get in touch with them and explain your situation. Those specialists will come up with a new payment plan, and then contact all your creditors to ensure they approve. Your debtors can never contact you again, and that should help to remove some of the stress from your shoulders. Just bear in mind that debt consolidation is the last resort, and you need to keep up the repayments. Failure to do so will often mean the business takes you to court and makes you bankrupt.

Remortgage your home

Homeowners who’ve paid their mortgages for more than ten years will have lots of equity in their properties. It’s possible to transfer that money into your bank account in a matter of days if you select a suitable remortgage deal. Most banks and financial institutions offer that service, and so you just need to search online to find the best brands and arrangements. There are comparison websites that will take all the hard work out of the process and show you the best offers available right now. So, the internet is your friend, and you need to use it wisely! The last thing you want to do is accept the first deal on the table because it’s possible that you might rip yourself off. Also, ensure you understand that adding a new mortgage to your home will mean you have to make payments for longer than you otherwise would have done.

Sell your property and downsize

If you don’t want to remortgage your house, perhaps you like the idea of selling it and downsizing? While it can take many months for a property to sell on the open market, there are other solutions on the table. For instance, experts like those at and competing websites claim it’s possible to secure a sale in a matter of days. You just have to resign yourself to the fact that you aren’t going to get the full asking price. However, that doesn’t always matter if your goal is to reduce debt and move to a small house in a different town. So, consider all your options before working out which is the best route forward for you. In many instances, it’s possible to get around 80% of the real estate value using those specialist companies.

Get rid of that extra car

Far too many families have more than one car in their driveway these days. While that is often convenient, it doesn’t do much to help the environment. Also, paying for fuel, road tax, and insurance can become somewhat expensive when you have two vehicles to run. With that in mind, anyone who needs to raise cash to reduce their debts should sell their second car according to sites like That is the case even if the vehicle isn’t worth much cash. The money you save on fuel and insurance will mean you manage to keep lots of additional funds in your accounts this year. You can then use that money to send significant payments to your creditors at the end of each month. Hopefully, that debt will start to reduce straight away.

Sell anything of value

Lots of people forget about the valuable items they have lying around at home. Maybe a relative left you some original artwork in their Will? Paintings can sell for thousands of dollars at auction, and so it might make sense to pay to get it valued. You may even have memorabilia collections or something similar? Those first edition comics might feel close to your heart, but they could also help you to get out of debt. When it comes to specialist items, be sure to list them through niche auction houses. That is the best way to guarantee the products go in front of collectors and people who understand their value. Don’t make the mistake of putting expensive items on sites like eBay unless they have mass appeal.

Launch a low-cost business

There are thousands of low-cost business ideas you could try if you want to increase your income and clear those debts. You live in the digital world, and so it makes sense to focus your efforts online. That should mean you can work from home and there is no need to pay for an office. You can also ask friends and family members to help out, so you don’t need to employ workers. Ideally, you just need to come up with a concept that will enable you to become a middle-person. That means you don’t complete the work, and you just act as a go-between. You link clients with professionals and take a healthy commission in the process. Of course, it’s sensible to focus on industries for which you have at least some knowledge or experience. There are hundreds of articles you can read online that should point you in the right direction and provide some inspiration.

Cancel your credit cards

People who want to clear their debts need to cut up their credit cards right now. That piece of plastic in your wallet is the cause of most of the stress in your life. The last thing you want to do is borrow more cash while you’re making such an effort to balance your accounts. So, remove the temptation altogether by taking those credit cards out of your purse and putting them straight in the trash. Lots of people claim that is a liberating experience after being attached to their plastic friends for so much time. Just make sure you don’t snap any bank cards by accident because that can become a real pain. Also, call your credit card providers and let them know you won’t use their services again. Then, you only have to worry about making monthly payments, and the balance should continue to come down.

Resist impulse purchases

Lastly, anyone who needs to improve their financial situations should make sure they always resist impulse purchases. Only visit your local shops when you need to buy a particular item, and always take a shopping list. Never deviate from that list, and you should manage to save a small fortune this year. Just take a moment to consider this fact. If you overspend by $2 every time you go to the store for a year, there is a decent chance you will part with at least a couple of hundred dollars unnecessarily. You could use that money to make payments towards your loans and credit cards, and so that is a situation you need to avoid. Impulse purchases are the result of savvy retail psychologists. Don’t fall for their techniques!

At least some of the nine ideas on this page should help you to get out of debt during the next twelve months. It stands to reason that people who remortgage their properties or sell their homes and downsize will make the most significant dent in their debts. However, you just need to keep working towards your goal in whichever way you deem most appropriate. Now is the time to check out some of the consolidation deals available in your home country. Weigh all the pros and cons before signing on the dotted line, and the scales of balance should begin to tip in your favor.

Let’s have three cheers for financial freedom. Hip, hip, hooray!

Getting Out Of Debt




About Us

DollarBreeders is a personal finance blog dedicated to people who want to take control of their finances and secure their future. Here you will find personal stories to inspire you to make better and more informed financial decisions. We aim to help people understand personal finances better and meet the challenge of living comfortably within the budget.