If you’ve found yourself in the middle of an emergency without an emergency fund or if that credit card bill has crept up unexpectedly, you might find a real need for money to pay things off.
It is important to pay off your debt as quickly as you can because whether it is through late payment fees or through credit card interest, taking longer to pay off a debt can wind up costing you quite a bit of money.
Sometimes you need a big quick solution to get a bunch of money to take care of that debt. Here are a couple of solutions to try.
Car Insurance
You may be able to save hundred and apply that money to your debt with a couple of phone calls. Car (or house) insurance can be reduced in many cases. You can see if you qualify for a lower rate, such as a good driver’s discount or a low milage discount. If you card is a few years older than when you first applied for insurance, there may be a lower rate waiting for you, too. You have to ask. Rare is the insurance company who will contact you to reduce your rate.
Two other ways to reduce the insurance bill: combine home and auto insurance or simply get rid of that second or third car.
Refinance
Can you refinance your home at a lower rate? If so, you could take the difference in your monthly payment and use it to pay off debt. Just be careful about starting over from scratch with a 30 year mortgage. You want to eliminate debt not take on more of it.
Have a Yard Sale
You could make hundreds or even thousands of dollars when you have a yard sale or sell off something big. Take that money and run…to pay off your debt. Is it the wrong weather for a yard sale? Take advantage of online marketplaces to sell your stuff instead.
Sometimes it is cheaper to rent equipment instead of spending the maintenance to own it. A boat is a good example, but look at lawn equipment, a motor home and more to calculate the cost of ownership.