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9 Extreme Ways to Reduce Debt

Published by admin on November 30, 2009

9 Extreme Ways to Reduce Debt

If you really have to pay your monthly bills and there isn’t any opportunity for you to raise your current income, you should first reduce your monthly outgoings. The moment you will start doing some cuts in your current spending habits, you can finally start to reduce your debt.

Some of the cuts you can do in spending can be considered to be completely painless, like for example if you will start saving gas by taking the bus, or switch off the lights when you are not in that room. But in case you are in for some serious savings you will have to take some more extreme methods to save money and reduce debt.

In this article we are going to present you 9 Painful but very efficient ways to reduce debt.

1. Go Back to Living with Your Parents or Relatives that you Have

Even if the first time you hear it, this might not sound like an option you have, if you are going to do it you might be able to save thousands of dollars per year. In case you got used to live on your own it will be a little bit harder at the beginning, but you will eventually get used to it. This will help you reduce your debt since you will no longer have to pay for mortgage or rent. This new life will help you save some money that you can use towards reducing your debt. You can do this experiment until you manage to get out of debt.

2. Cycle All the Way to Work

In case the place where you work is just 10 miles or less from where you are staying you could definitely save a lot of money by using your bike instead of your car. This way to reduce debt is also environmental friendly and you will also exercise a lot. You will be fit and keep the gas money in your pocket.

3. Stop Smoking/Drinking/Coffee

In case you really want to reduce debt, you will have to start making some important sacrifices. Giving up on smoking, drinking and coffee is not something impossible to accomplish. In case you will do this you are going to be a great physical, mental and financial health.

Many of us are spending a lot of money on these 3 types of products that are not making your life any better.

4. Start Cooking!

Eating out can be a lot of fun and a lot easier for you to do. But if you are serious about reducing your debt you will have to start making some important changes in your life. In case you will start to cook for yourself your meals are going to improve. You will start eating healthier and you will also save a lot of money every day.

5. Get another job

If you will take another job it does not mean that you will work weekends and nights forever from now on. You will have to do this until you manage to get out of debt. Even if you will only earn $300 per month from your new part time job, that will be $3,600 each year, money that could go towards reducing that credit card debt that you have.

6. Get a room mate

Even if this might sound a little bit difficult at the beginning, you by taking in some room mates, you can earn a lot of money without ever losing your freedom and independency of living on your own.

7. Drop one of the household cars

You just can’t imagine how much you are paying for one of the cars that you’re using. There is gas, maintenance, car payments plus other expenses, and there are also many ways to go from one place to another.

8. TRY the $5 a day Challenge

Even if this might sound extreme, could you survive with only $5 for 1 day? This idea might not sound very pleasant but you could try it out at least for 1 week. And at the end of it, look at how much you’ve managed to save. These types of experiments are going to help you how to be frugal. The moment you have so little money, you will finally know what expenses are important in your life and what not.

9. Get a debt consolidation quote.

In case you are serious and want to reduce your debt, you must look at all the options you have available. You can get a free debt consolidation quote from most online debt consolidation companies out there. This way you will reduce debt by reducing your current interest rate at the debt you have. There are many offers available on our website, just pick one and find out how much you can save!

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