5 Ways To Pay Off Debt

How To Pay Off Debt

You might feel as if you’ve done everything in your power to avoid accumulating too much debt. And yet, you’ve still found yourself swimming in debt that you can’t seem to pay it off. To help, we’ve listed the top 5 ways to pay off debt. 

You’ll finally be able to pay down outstanding debt with MoneyLion. We can provide solutions like Instacash advances and Credit Builder Loans to help you out when you need cash to make payments or to avoid taking on more bad debt. 

Here are the top 5 ways to pay off debt fast.

Pay Down High-Interest Debt

First things first: pay down high-interest debt. One way to help is by applying for a low APR credit builder loan that gets you cash and helps you build credit. You can typically qualify for a credit builder loan even if you have poor or no credit. As you make payments on a credit builder loan from MoneyLion, we will report it to all three credit bureaus to help boost your credit score. 

Another alternative is MoneyLion’s Instacash cash advances. Instacash helps you get money fast – up to $250 – with 0% interest. Instacash is handy if an unexpected event occurs or you need extra cash to make a sudden payment. These are much more beneficial than payday loans because there is a 0% interest rate and no impact on your credit score – you end up paying back exactly what you borrowed. No credit check is required.

Pay More Than the Minimum

You can also try to pay more than the minimum on your debt payments to pick away at debt more painlessly over time. Your credit card and other bills have a minimum payment every month that you need to pay off. When paying more than the minimum, you’ll end up paying off your debt faster and potentially can increase your credit rating. You’ll also pay less interest over time! 

Speak to a Creditor

A creditor is essentially any company that loans you money. Some creditors might help you to set up a monthly payment plan where you can pay a set amount each month that counts toward your overall debt. Debt consolidation creditors help you combine debts from several creditors and take out a single loan to pay them all, ideally at a better interest rate and lower monthly payment. A company like Accredited Debit Relief can even provide programs or solutions to you to pay off your debt without affecting your credit score. 

One example of what a creditor might offer is a balance-transfer credit card. When you get a balance-transfer credit card, you move your high-interest debt to one with a lower interest rate. Although this doesn’t get rid of the debt, it does get rid of the high-interest rate, which might be one of the reasons you’re struggling to get out of debt in the first place. Try to find a credit card with a lower interest rate than your current one, no balance transfer fee, and a long introductory period so that the interest rate doesn’t increase while you’re paying off the debt. 

Pick Up a Side Job

Side hustles can help you pay off debt. Picking up a side job doesn’t have to be boring; the options are endless! Try babysitting, house cleaning, or working in a restaurant. You can set your own hours and pay rate, and set aside the profit to pay off your debt.

Make Extra Payments

Try and make extra payments on your loans. Not only does this pay off the loan faster, but it also ends up lowering the amount of interest you pay. You can make these extra payments in smaller increments each time you’re paid, as long as there is no fee. With MoneyLion, it’s easy to make extra payments when you can using the MoneyLion app, with no fees.

The Solution is Here

These are the best 5 ways to pay off debt with easy-to-try solutions so you’re not stuck accumulating unpaid loans. You can try picking up a side job, making extra payments, speaking to a creditor, paying more than the minimum, and paying high-interest debt. MoneyLion provides solutions to help you streamline your finances, including affordable credit and credit tracking in the free MoneyLion app.