In over your head in debt? Maybe it’s time for drastic action. If your credit card balance is high, and disposable income is low, you might need some nonconventional ways to solve a pretty big problem. There’s good news also if you put your nose to the grindstone. You’ll find that the skills you can build by taking on additional work to get more money can also propel you toward new skills that you can use to build wealth even faster once the debt’s retired.
Here are some alternatives that might seem ugly at first, but considering your debt is also ugly, might be some alternatives you should consider.
[See: What to Do If You’ve Fallen (Way) Behind on Your Credit Card Payments.]
Move to a remote location. Don’t like your money situation? Remove your ability to spend money quickly by moving to a remote location. By giving yourself fewer options, you’ll double down on your savings rate. Take a job and move somewhere without internet access and with few prospects for spending your dollars quickly. Move to Alaska or to a small town without things to buy and expensive shipping. This will help you focus on your debt and avoid making purchases you’ll regret later.
Need a less crazy option? Downsize your home. That will cut your rent or house payment costs, but also possibly tamp down on upkeep, utility bills and property taxes.
Need another less crazy option? Take on a roommate. You’ll cut your expenses substantially by having someone share the rent.
[See: 10 Easy Ways to Pay Off Debt.]
Sell your stuff. Make some money by selling your stuff. Imagine the monetary value of all the things you own. How much money would you gain by getting rid of it? Also, how much mental space would you clear, so that you could focus on earning more money to get out of debt? Clutter clutters your mind. By removing stuff from your life, you’ll be able to apply the money toward your debt, but also focus on building a brighter future.
The less crazy option? Try a spending freeze. Government entities do it, so why can’t you? Stop spending money on anything not related to the basics of food, clothing and shelter. You’ll see your budget loosen immediately.
Sell your car. Cut your auto bills by ditching your car. If you have a car payment, this plan could work wonders. By eliminating the car payment and either biking or walking to work (or carpooling if you’re far away), you’ll wipe out a huge amount of overhead. Plus, by walking or biking, you’ll also improve your health. This could be a win for your pocketbook and also for your next physical. Plus, your ability to work and earn more money could improve if you’re in better shape to work hard the entire day.
Looking for a less crazy option? Downsize your car to one with no car payment, or even a lower car payment. Why pay a lot of money for a vehicle if you have massive amounts of debt?
[See: How to Live on $13,000 a Year.]
Ask for a raise at work. Seriously. This doesn’t sound crazy enough to make this list? It must be nuts because people are afraid to ask for raises. While the world is out finding ways to lower expenses, the smarter move might be to increase your income. Ask for raises the correct way. Don’t make demands or tell your boss about your personal problems. Instead, tell your boss how you can add more value to the company by being paid more. Look at competing companies and show your boss how much you’re worth on the open market. You both might be surprised.
Need a less crazy option? Start a side hustle. You’ll avoid potential conflict with your boss and still may bring home some extra funds.
Raising money to pay down debt sometimes can take years, but by taking drastic action, you might slash the time it takes to pay off your loans. Better yet? When you prove to yourself that you can do whatever it takes to pay off loans, you’ll also prove to yourself that you can be a money-making machine and propel yourself to savings and security much faster as well.
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4 Crazy Ways to Climb Out of Debt originally appeared on usnews.com
