Between the ages of 25 and 28, I paid off just over $80,000 of consumer debt while earning only $40,000/yr at my full-time job.
On the surface, this would seem like a nearly impossible task. After all, once taxes were deducted, nearly everything I earned at work during that time went to repaying debts with no money left to pay for living expenses.
But I utilized a number of tactics to both save money and earn more, which ultimately helped me pay off debt fast. It was part smart personal finance and part hustling, but, as a result, I was able to make huge payments and clear $80,000 of debt in just three years!
1. I refinanced some credit cards with personal loans
For anyone who finds themselves on the wrong end of credit card debt, personal loans can be a lifesaver. If your credit is at least above average (roughly, that means at least a 650 credit score), you may be able to get a personal loan of up to $35,000 at a lower APR than your credit cards.
This is great for two reasons: First, youll save money on interest. But even better, a personal loan comes with a fixed repayment period (usually three or five years). (more…)