, which involves taking out a new loan to pay off multiple existing debts. This strategy combines all your debts into a single, more manageable loan, usually with a lower interest rate. By streamlining your debts, you'll simplify your monthly payments and reduce the chances of missing payment dates.
Debt consolidation loans can be particularly effective if you have multiple high-interest debts, such as credit card balances. This approach not only simplifies your debt repayment plan but also helps you save on interest payments over time., you might qualify for a personal loan with a lower interest rate than your credit card debts. You can use the personal loan to pay off your high-interest debts, and then focus on repaying the personal loan at a more manageable rate.
Side hustles are immensely popular because they're an easy way to boost earnings, and they don't typically require you to work set hours each week. If you have a skill that can be monetized, use it to earn some extra money, whether it's freelance writing, graphic design, tutoring or pet sitting. Or, you can opt to drive for a rideshare or food delivery service instead.
You can also earn some spare cash by completing easy tasks online in your spare time. For example, participating in paid online surveys can be a convenient way to earn extra cash from home. Numerous market research companies offer compensation for sharing your opinions on various products and services. While it's not a substantial income source, the earnings from paid surveys can still contribute to your debt payoff strategy.