How To Eliminate Debt In Bursts

For those that have debt and are trying hard to lower it, there have been a thousand approaches to do so. Many simply spread repayment across their debts steadily, paying off  a fixed amount each month. But others have a different approach, according to how they receive income, and when. Moolr take a look at how to eliminate debt in bursts.

Taxes

A clear opportunity for many at some point in their lives, if they are lucky! If you get a tax refund, drop it on your debt. If you have problems savings, you could even overpay tax as a deliberate tactic, but it is not something i would want to encourage.

But these bonuses can come in other forms too. I am about to receive a rebate from an old job as bosses decided some of my work was carried out on the wrong pay grade. I will put all this money into paying off a credit card.

Bonuses

Some workplaces still employ a bonus system, especially in sales departments. In my first job after university, i received a poor wage but a big annual bonus based on performance. I wasted this bonus with an extravagant weekend out! A wiser, older me would have used that money to supplement my wage and pay off debts or invest. Bonuses can be dangerous, as they can be viewed as free money, but you need to treat them as part of your wage.

Presents

This may prove troublesome for many, but people who know you should appreciate your honesty. If you are struggling and have a birthday coming up, ask for money instead of gifts, and explain why. This is a technique that many have also used for weddings, to help cover the considerable costs. It is not for everyone, but could help get your life back on track.

Sell your Possessions

All of us, and i mean all of us, possess a raft of items that we never use, never even look at, that have no purpose to us, but may have value. So collect everything you have and consider selling it all on a certain well-known auction site. Or perhaps do a car boot sale to sell off books, clothes and CDs. I once made over £100 via this method, and everything I sold was of no value to me. Better to have money in your pocket.

Sell Bigger Possessions

This would mean making some big, big decisions. But if you have more than one car in your household, then consider selling off a vehicle. Or even selling your house and renting, thus receiving a huge amount of cash in one go.

Extra Work

Consider taking on extra work if you are capable of doing so and using all additional income to pay off debt. Then you free your regular wage to get on with your life.