EliminatingΒ debt is definitely one of the most common goals for starting off the new year. Β Here are four tips to jump start 2016 towards financial success.
- Prioritize debt: Tackle one credit card at a time. Pay off the one with the highest interest rateΒ first. Β Next, work on eliminating your car loan, a depreciating asset which loses its valueΒ the minute you drive it off the car lot. Β Experts say, the key is to tackle debt as aggressively as possible and begin saving for the future.
- Bonus money: Β Treat it as though you never had it. Β Put it towards your debt.
- Take on a side hustle: People who are most successful in paying off their debt take on a side gig. Β Try secret shopping. It’s a great way to earn extra cash. Check out PennyHoarder.com for the best companies to work for.
- Negotiate: Β Now, this is one thing that most of us must learn to do. Β According to creditcard.com, about two-thirds of credit card holders have asked card companies to lower their interest rates and have been approved. Β No matter what kind of debt, ask. Β The worst that can happen is they say no.
- Save loose change:Β If you’re that person whoΒ regularly empty your wallet of loose change, depositing into a piggy bank or an old mayonnaise jar on your dresser, clearly, you understand that small money is good money too.Β Once the jarΒ is full, put it towards debt.