Being in debt is not a pleasant feeling. It’s easy to collect debt but difficult to pay it off, whether it’s loan debt, credit card debt or debt from other borrowings. Hence, we take conventional ways like taking a personal loan or borrowing from a chit fund to pay off these debts. But there are other methods which can help you achieve the same outcome. These 5 unconventional ways to get out of debt require a little sacrifice, but it’s better to be safe than sorry and put all your resources to use to get out of debt.
1. Sell things that you don’t need
Look around your house for things that you don’t use anymore. Keeping unused things at home is just another form of burden. Instead put that asset to use and sell it. You can put up an ad for your unused phone, clothes, other electronics or furniture on sites like OLX and Ebay and get some additional cash out of it. As soon as you get that money, put it towards your debt.
2. Allocate raise/bonus
This one is the simplest to implement. Whatever extra income or cash that you get – be it a raise, a bonus, or tax savings; use them to pay off the debt. Debt is a temporary issue which can go away if you diligently work for it. You can enjoy your raise and bonuses once you have achieved your financial freedom.
3. Part time/one-off gigs
If you have any talents or skills which you can use to your benefit then by all means make use of them! If you have talents like singing or dancing then don’t avoid any opportunities to perform. Working a part-time or a freelance gig can help you earn some money and pay off some of your debts.
4. Borrowing from friends & family
This is one of the best ways to get out of debt. By borrowing money from friends and family, yes you are just transferring your debt, but this is a debt which can be paid anytime with a little understanding between you and your peer. Institutional debts however end up costing you a lot more money because of interests, hidden fees, and charges.
5. Cut down on impulsive buying and other habits
Impulsive buying is not going to benefit you in times of debt. In order to gain your financial freedom, it is very important to be frugal with money and use it wisely. Impulsive buying may just end up furthering your debt problems (if it isn’t the cause of your debt in the first place anyway). Therefore, it is recommended to cut back on impulsive buying and other trivial expenses. If you have a habit of not getting back change or not collecting borrowed money then you may want to change that. Apart from this if you have any habits that are leading you to spend money for no reason then you need to control that and change your habit.
BONUS – 6. Use the power of group savings and borrowings
If you find that you aren’t drowning in debt but fear the worst, you want to clear your debt at the earliest. Especially since most debts are fairly expensive to maintain, borrow money from your chit group which you had started investing in for just this kind of day.
As mentioned above, it’s easy to get into debt but very difficult to get out of it. Hence, diligence and perseverance are important traits that you need to stay on track to get out of debt.