Pages Navigation Menu

Everything Personal Finance

Debt: Unorthodox Ways To Escape It!

https://pixabay.com/en/out-of-the-ordinary-the-pink-panther-1524887/

Debt in any way shape or form weighs very heavy on your head, whether you are in debt to someone, if someone won’t pay you back money that they owe you, or you have a massive credit card bill that increases with interest as the years go by. It’s not a good way of life to be in. And while there are many of the common ways to get out of debt, from getting a loan to establishing good spending habits, but have you thought about these options too?

Buying Items… Then Selling Them On

While this may sound somewhat counterintuitive and requires a cash injection upfront for this to work, you can buy items before selling them on at a profit. Granted, sites like eBay already have this market covered, and it can be hard to stand out in this way because so many others have the same idea, but check out this link for some hints and tips on how to use the Fulfillment By Amazon service to your advantage.

Renegotiating The Balance On A Bill

This isn’t a suitable option for everyone, but if you are behind on your payments, you could try to negotiate your balance down to a lower cost. Aim for forty percent of the balance as a rule. If your account is classed as an overdue one, credit card or debt collector companies may be happy to take a lump payment that is lower so they can close out the account. The catch in this is that the account must be “delinquent” before the creditor is in a position to negotiate. But if there are any issues in this sense, you should confirm if you need a debt collection attorney to help. But remember that if you let bills go unpaid, it can impact your credit score and also if a portion of the debt is excused, that could be taxable.

Redeeming Credit Card Rewards

A typical cause of debt, credit cards are only paid off effectively if you have a lump sum to put on the card. But if you used a rewards credit card to charge for the essentials, like gas, food, and clothes can in some circumstances be redeemed in the form of statement credit. While this may not completely eradicate debt, it is a way to slowly chip away at your balance. Remember, this will only work if you pay off the newer charges every month. Otherwise, you are just adding the charges to your mounting bill, and if you are a shopaholic, a credit card can just lead to further impulse buying, so be careful.

Asking A Family Member…

For some, it doesn’t bear thinking about, but if you ask for an advance on Christmas money or birthday money it may make for a tense situation, but if you are that desperate it can help. But the downside to this is that it really hasn’t helped you address your spending habits, so tread carefully and really evaluate your own money habits first.