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Gloucestercitynews.net (March 27, 2020)--Did you know that the average American has around $38,000 in debt? Once you factor in mortgages, this number skyrockets even higher.

Although some debt is normal, that doesn't mean having it is ideal. Getting down to zero debts may sound too good to be true, but anything is possible with enough careful planning.

Do you want to learn how to become debt free? Keep reading to learn 5 effective tips that will help you pay off debt much faster.

1. Take a Close Look at Monthly Spending

If you want to become debt free, you'll have to be really strict about how you spend each paycheck. Although you'll have to make some sacrifices in the short term to tackle your debt, the rewards will be worth it in the end.

Once you make a chart of your expenses, start thinking about what you can cut out so you'll have more money to put toward your debt. Clothing, entertainment, and daily coffee runs are just a few examples of non-essential expenses.

2. Pay Off Highest Interests to Owe Zero Debts Sooner

The smartest way to approach your debt is to put all of your resources toward your highest interest rates first. Even though you may have some small loans, high interest rates can turn them into giants before you know it. This avalanche technique will allow you to pay much less by eliminating debts that accrue more interest first.

3. Try Negotiating with Creditors

Do you have a good credit score and a clean record when it comes to paying bills on time? If so, you should try calling all of your creditors to see if they're open to negotiating your interest rates. If you can wiggle your interest rates down by even half a percent, you can take a lot of pressure off of your wallet in the long run.

4. Get a Flexible and Fun Side Hustle

If you're serious about paying off your debts, getting a side hustle is one of the most effective ways to direct more money toward your debt. The good news is that there are plenty of flexible jobs that allow you to set your own hours so you can still have some free time to yourself. Teaching online, taking surveys, transcribing, and writing blog posts are just a few fun opportunities to earn more cash.

5. Consider Refinancing

If you have a bunch of loans with varying interest rates and minimum monthly payments, it can be stressful trying to keep track of everything. This is why consolidating your debt into one loan with a better interest rate can be a smart move. You can read more here about how this process can lead to bigger savings.

Becoming Debt Free Isn't Too Good to Be True

Know that you know the top tips for owing zero debts, you can revolutionize your personal finances for a brighter future.

Do you want to know other ways you can grow your savings? Make sure you bookmark our site so you never miss an important update.