7 Smart Ways to Beat Your Debt

Web3 Money is reader-supported. We may receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies by viewing our Disclaimer page at the bottom of our website.

Web3 Money Team

Debt is a common problem that many people face. It can come in the form of high interest credit card debt, medical bills, student loans, or car payments. A recent study found that over 80% of Americans are in debt. So, how can you get out of it? The key is to have a plan and be dedicated to following through with it. Here are seven clever ways to help you pay off debt:

1. Consolidate your debt

If you have more than $10,000 in debt from various sources, such as credit cards, medical bills, and personal loans, you may be able to consolidate it into one low monthly payment with the help of a company like National Debt Relief. This can make it easier to manage your debt and potentially become debt-free within 24-48 months.

2. Switch to Cheaper Car Insurance

Shop around for car insurance: You may be overpaying for your car insurance, potentially wasting hundreds of dollars per year. A tool like SelectMyPolicy can help you find more affordable insurance by matching you with companies that can save you up to $500 or more per year.

3. Reduce or Eliminate your late tax debt

Get tax debt forgiveness: The IRS forgives millions of dollars in unpaid taxes each year. If you owe more than $10,000 in tax debt or have three or more years of unfiled taxes, you may be eligible for forgiveness. Easy Tax Relief can help you negotiate with the IRS to lower or eliminate your tax debt.

4. Earn Cash Bonuses With This Amazing Card

Use a rewards credit card: A rewards credit card like the Wells Fargo Active Cash® Card can help you earn unlimited 2% cash rewards on your purchases. As a new cardholder, you can also get a one-time cash rewards bonus of $200 after spending $1,000 in the first three months. This can be a simple way to earn cash back on everyday expenses while also paying off your debt.

5. Consolidate Debt by Transferring to a Lower Interest Card

Consider a balance transfer credit card: If you have high interest credit card debt, a balance transfer credit card can help you save money on interest charges. These cards typically offer a low intro APR for balance transfers, allowing you to pay off your debt faster. Just be sure to read the terms and conditions carefully, as some balance transfer credit cards charge a balance transfer fee. You can compare the best balance transfer cards with a trusted service like Credit Karma.

6. Negotiate Better Rates with Your Card Company

Negotiate lower interest rates: If you have good credit and a solid payment history, you may be able to negotiate lower interest rates on your credit card debt. Contact your credit card issuer and ask if they can lower your interest rate. If they can’t, consider shopping around for a credit card with a lower interest rate.

7. Create a Budget and Stick to It

Create a budget: Creating a budget can help you get a better understanding of your financial situation and identify areas where you can cut back on expenses. This can free up more money to put towards paying off your debt.

Paying off debt can be a challenge, but with the right plan and dedication, it is possible. You should always seek professional help: If you are struggling to pay off your debt, consider seeking the help of a financial advisor or debt counselor. They can review your financial situation and provide guidance on the best course of action for paying off your debt.

By considering these clever strategies, you can work towards becoming debt-free and achieving financial freedom.