Living with debt can be daunting. It can be the biggest hindrance between you and your financial goals. Thus, it has got to go at all costs.

If you’re struggling with debt, you don’t have to worry anymore. In this article today, I’m going to highlight a few smart strategies to get you out of debt in just a few months. Trust me; a few compromises and you’ll be good to go.

Alright. Now let’s have a look at some of the most promising debt repayment strategies:

Debt Consolidation

The first thing that I suggest you try is debt consolidation. It’s a kind of debt refinancing that involves taking a loan to pay off others. While it may seem insane to you right now, it can save you from the interest fee that’s accumulating along with your existing debts.

It’s one of the most popular ways to deal with government and corporate debts owing to its convenience. Apart from the convenience, it also saves you a lot of time and hassle. Once you’re done paying your existing debt, you can start with monthly payments for the debt consolidation loan.

The Snowball Debt Method

In case you don’t want to take another loan to get rid of the existing debt, you can always go for another method. The snowball debt method is one beneficial way out. In this method, you hit the smallest debt first.

Start by creating a list of all your existing payments and that too, in ascending order. When done, pay the smallest debt first and gradually move towards the bigger ones. It may take some time, but you’ll be done with it, once and for all.

The Debt Avalanche Method

Among many others, the debt avalanche method remains the most popular. It’s quite the opposite to the snowball debt method and to be honest, it’s a better option, too. The debt snowball method leaves the interest fees issue behind.

Well, it’s not the same with the debt avalanche method. In this method, you make minimum payments on all your debts and direct the surplus amount to the one with a higher interest rate. If anything, it saves you from the additional money you pay as interest fees.

Debt Settlement

The fourth option is debt settlement. It works well for those who are already late for their debt repayment and those who can direct a lump sum amount to debt repayment. Either you can talk to your creditor yourself and settle the loan or you can hire a professional to do it on your behalf.

In case you’re willing to have third-party involvement, make sure to research properly in order to avoid scammers. Also, it may cost you additional money. Hence, it’s better if you negotiate the terms and settle the existing debt on your own.

Balance Transfers

Last but not least, you can try balance transfers. It is especially helpful for credit card debt. You can strategically plan it out by transferring your existing credit card balance to another card. It would be like you’re paying off one credit card using another.

Here’s what you need to do: transfer the credit card balance of the account with a higher interest rate to the one with a lower interest rate. When done, start paying the credit amount each month, only this time with less interest rate.

The Takeaway

If nothing else works, you can declare bankruptcy and go for a fresh start. It’s the last resort and in other words, the last ball in your court. Rest assured, the strategies mentioned above will surely help you out. Good luck, guys!