How to get out of debt fast with low income in a year - The best way

Do you wish to get rid of collection calls, compounding interests, and save money? If so, this post will help you do it.

Not next month. Not tomorrow. Right now.

How to get out of various kinds of debts

Be ready to know easy ways to eliminate debt quickly. Here you go:

How to get out of credit card debt fast

  1. Credit card debt settlement program where you can get rid of debt between 2 and 4 years. This is the best way to pay your credit cards since you can save both time and money without filing bankruptcy.
  2. Bankruptcy where you can pay off your credit cards in 3-4 months. This is the fastest way to get out of debt with bad credit.
  3. Debt avalanche method where you pay an extra amount on the card with highest interest-rate while making the minimum payment on the other loans.

How to get out of payday loan debt fast

Here are a few options to knock-off debt when you have several payday loans

  1. Look at the state payday loan laws
  2. Call 800-530-OVLG to settle your payday loans
  3. Consolidate your high-interest pdls

How to get out of student loan debt

You can neither hate nor ignore student loans due to the high cost of education. Student loan debt is a burning issue in the country and you have to deal with it tactfully since the doors of the US bankruptcy court is closed with regards to this issue.

Ways to get out of debt

  • Take advantage of the federal student loan debt relief programs
  • Consolidate your private student loans
  • File bankruptcy only if you pass the Brunner Test (this is rare)

How to get out of other financial debts

Have you ever wondered how to get yourself out of debt when 90% of your loans comprise of personal loans, store cards, utility bills, and mortgage? The first three are unsecured debts and the last one is the secured debt.

The best get out of debt plan for unsecured ones is OVLG debt settlement program where our Financial Coach helps you save money and avoid collection calls simultaneously. The financial coach suggests you the ways to get out of debt quickly, and if you aren’t satisfied with the result, you can always claim a full refund.

Get out of debt programs to save money quickly

  • 1. Debt settlement: The quickest way to get out of credit card debt and payday loan is debt settlement. The Financial Coach asks about your total payoff number and the amount you can pay to your creditors. Once he gets the figure, he begins the negotiation process. This get out of debt program works best when your financial goal is to save money on the total outstanding balance.
  • 2. Debt consolidation: When you pay high-interest on a credit card or a personal loan, the debt mounts and it becomes difficult to pay it off. The easiest way to get out of debt is to take advantage of a debt consolidation program where you make a single monthly payment to your creditors. You can easily avoid paying high-interest, penalties, and fines.
  • 3. Debt management: One of the simple ways to get out of debt is a debt management program. The debt counselor tells you how to budget, which is very important since it helps you generate free cash for paying back your creditors. The counselor negotiates to lower the interest rate on your credit cards, personal loans, store cards, payday loans, etc. When you pay low-interest on your credit card bills, it becomes easier to get out of a lot of debt.
  • 4. Bankruptcy: If you ask attorneys, they would recommend bankruptcy as the best way to get out of debt in the following situations:
    1. Your creditors can file a lawsuit against you anytime
    2. Your house can be foreclosed any moment
    3. You don’t want to get a single collection call
    Obviously, this isn’t one of the smart ways to get out of debt since your credit score falls by more than 200 points.

How to get out of debt in one year

When you need to get out of debt in 12 months or less, there are several things you can do to eliminate your bills entirely. Here are a few strategies to get out of debt in a year.

  1. Put 15% of your paycheck towards your debt repayment. Making only small and minimum payments won’t help.
  2. Ask for a low-interest rate on your credit cards if you have been a good customer for several years. This can help you save a significant amount on the interest payment.
  3. There is no logic behind shouting ‘get me out of debt’ in forums if you use your tax refund for vacations and shopping. As soon as you receive your tax refund, use it to pay down your debts.
  4. Transfer high-rate debt to a zero percent interest credit card to knock out your multiple credit card bills. Make sure you pay off the teaser rate within the introductory period.
  5. Check the statute of limitations (SOL) period on your old credit cards when you want to get out of debt with no money. You can consider foregoing repayment of credit cards that are 7 to 10 years old. The SOL period refers to the period after which debt collectors can’t sue you for not repaying your bills. If the SOL period in your state is over, then you can avoid paying off your credit card.

How to get out of debt fast with bad credit

  • Check your credit report: Pull your credit report from the 3 bureaus and find out all the negative items on it.
  • Dispute the errors: See if there are errors on your credit report and dispute them.
  • Make a budget plan: This is one of the best ways to get out of debt even with bad credit. Create a budget plan to save a set amount every month. Use this money to make additional payments and get out of debt fast.

How to get out of debt without a loan

The fastest way to repay your credit card bills is to borrow a debt consolidation loan. You can replace your credit card bills with a big loan and pay it off gradually. But this is not a good solution since you’re just replacing your old debt with a new one. Besides, if the loan term is long or the interest is huge (which can be if you have bad credit), you’ll pay more eventually. So what are the other options? Let's find out.

  1. Debt consolidation program where a debt counselor tells you how to get out of debt and save money. There is no need to pledge collateral like you have to do against a secured consolidation loan.
  2. Credit card debt settlement program where the debt attorney/negotiator explains the process of how to get out of credit debt and negotiates with your creditors for giving you the best deal.
  3. If you ask a credit counselor how to get myself out of debt, then the first line he is going to throw at you is that ‘start budgeting as soon as possible’. You need extra money to get out of debt fast. One way to get extra money is budgeting and the other way is to do a part-time job. I will talk about in the next section.
  4. There are several ways to get rid of debt and save money. Debt snowball method is one of them. This is the best way to pay your credit card bills fast when you want to get rid of small balances first. Here you target the credit card with the smallest balance and make extra payments on it till it is paid off. Once you achieve your goal, you can make additional payments on the card with the second smallest balance.

How to get out of debt on a low income

When you have a low income, the first step you need to take for getting out of debt is increasing your income. Here are a few steps you should take.

  • Start couponing: You can save a ton of money by couponing. Just make sure you’re showing the right coupon for the product you usually buy. Otherwise, you could end up buying a product you’ll never use.
  • Follow a budget: Tell your kids that you’re on a budget to get out of debt. You need their cooperation on what matters: day-to-day spending, paying your bills, and building wealth.
  • Avoid costly hobbies: Think carefully. Do you need to splurge $300 on designer accessories? Are you serious?
  • Cut cable: You can watch most shows online. Use that $100 cable bill toward your debts and see how quickly you become debt free.
  • Do a part-time job: A part-time job in your spare time can help to put extra cash in your wallet. This is a small sacrifice you need to do for eradicating debt.

3 Tips to get out of debt and save money

  1. Sell your car and use the money to pay your bills: The average car maintenance costs $400 per month. Just think how quickly you can get rid of debt if you pay an extra $400 every month.
  2. Get rid of your past spending behavior: Eliminate the reasons you went into debt. Stop buying things you can’t afford. Figure out what kind of life you can afford. Create an emergency fund if you have never made one in the past.
  3. Stop borrowing money and get extra cash: Live within your means. Spend less than you earn. Ask for a raise to get extra cash and use it to repay your bills. Work harder since extra hours can help you earn extra dollars.

What is the best way to get out of debt?

It depends on your financial situation. Consolidation program is the best way to get out of credit card debt fast when you want to save on the interest. The settlement is the best option to get out of debt when you want to reduce the overall balance. Bankruptcy is good when there is no other option left.

Tools that can help you

Calculators:These calculators help you compare different get out of debt programs and figure out how long it will take to get out of debt. Enter your financial details and check how much you can save.
Letters: Sample debt settlement, validation, and credit letters help you negotiate with your creditors in writing.
Try to avoid: Verbal negotiations since they are not legally binding.

Where can you get financial advice to discard debt?

OVLG: Call 800-530-OVLG to contact OVLG Financial Coach and get advice on how to pay your credit card bills quickly.

Credit counseling agencies: Contact credit counselors who can suggest you the steps to get out of debt.

Debt and bankruptcy attorneys: No one understands the psychology of creditors and state laws better than debt and bankruptcy attorneys. You can get the best tips to get out of debt fast from them.

Friends: Do you have a friend who is very good at managing finances? Ask him the quickest way to get out of debt. Perhaps he can give you some good suggestions.

Last Updated on: Wed, 23 May 2018

BBB-A--Rating TrustLink logo TrustLink logo