A recent study has shown that 5 out of 10 people in the UAE are in debt and 3 out of 10 people are not being able to save money.

Falling into debt is something most people suffer from which can escalate to bigger problems on a professional and personal level as well.

Top Ways to Get Out of Debt Fast

Write down the debt with the interest rates

The first step to solve any problem is to acknowledge it. Therefore, when in debt, the first step you must take is writing down all the expenses, the loans amount along with the interest rates of each one and the source of income.

[Related Article: Save or Pay Off Debt First?]

Ask for lower interest rates

Yes, you can ask for better terms and lower interest rates from the provider! Although most providers have firm terms and conditions, if you demonstrate your case well and you have a better credit history then there is a chance to meet halfway with the provider with better terms and lower interest rates.

Set a budget and stick to it

Now, it is all about massive action and discipline! You have to set a budget and make sure you stick to it no matter what.

Look for a side hustle

Attacking your debts with the debt snowball method will speed up the process, but earning more money can amplify your efforts even further. Therefore, you might need to start looking for an extra income source. Each one of us has a talent or skill they can monetize like, graphic designer, virtual assistant, writer, photographer, babysitter…etc.

There are two methods to consider:

  1. Snowball method

With the debt snowball, you’ll pay off your debts in order from the smallest balance to the largest. Many people love this method because it includes a series of small successes at the beginning — which will give you the necessary motivation to pay off the rest of your debt. Here’s how it works:

  • Step 1: Make the minimum payment on all of your accounts.
  • Step 2: Put as much extra money as possible toward the account with the smallest balance.
  • Step 3: Once you pay off that debt, take the money you were putting toward it — and funnel it toward your next smallest debt instead. Continue like that until all your debts are paid.

In other words, you take aim at your smallest balance first, regardless of interest rates. Once that’s paid off, you focus on the account with the next smallest balance.

  1. Avalanche Method

With this strategy, also known as debt stacking, you’ll pay off your accounts in order from the highest interest rate to the least. Here’s how it works:

  • Step 1: Make the minimum payment on all of your accounts.
  • Step 2: Put as much extra money as possible toward the account with the highest interest rate.
  • Step 3: Once you pay off that debt, start paying as much as you can on the account with the next highest interest rate.

Continue like that until you pay off all your debt. Every time you pay off an account, you’ll have more money to put towards the next one. And since you’re tackling your debts in order of interest rate, you’ll pay less overall and be out of debt more quickly.

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