If you are panicking because you managed to accumulate $5000 in debt and you don’t know what the first thing to do to pay it off. I’m here to tell you that $5,000 is a doable amount to pay off over time, so long as you create the right plan to tackle it.
This doesn’t necessarily mean you have to start selling everything you own! Sometimes you just need to dig around to find extra cash that you’re already spending.
How to Pay off $5K in Credit Card Debt
Making the right plan of attack for paying off debt can feel overwhelming at first, but it doesn’t have to be, especially if you find resources for ways to help pay down your credit card debt.
1. Get a consolidated loan.
Interest rates can stand between being able to pay down debt faster. Using a company like Fiona can help you find personalized lending options to refinance or consolidate your debt, which can save thousands on interest.
Fiona helps by showing you all the lenders available to help you pay off your credit card faster because you just make one payment.
Checking rates on Fiona won’t hurt your credit score — so, check them out to see if they can help reduce that crazy interest!
2. Lower you car insurance.
Most of us are probably overpaying for car insurance and don’t even realize it because they dont shop around. And that’s probably because it sounds like something that’s time consuming-I get it.
That’s why there are services out there that can take care of it for you. One such company called Gabi will do it for you-simply link your insurance account and provide your driver’s license number, and Gabi does the rest.
After that’s done, Gabi does this:
- Scans your existing insurance plan.
- Looks at what coverage you have.
- Compares all rates for that same coverage from other insurers.
- If it finds you a better rate, you can switch on the spot.
Gabi has a track record of finding an average savings of $720 per year for its customers.
3. Cut Your Grocery Bill In Half
When you are trying to pay down debt, food expenses really gets in the way. But, you can’t stop eating, so when you can get some money back from your grocery bill, then it becomes a win-win situation!
One of our favorite ways for saving money on groceries is Ibotta. You can look at it as an easy way to coupon, eliminating the hard work of clipping actual coupons.
Simply sign-up for Ibotta and then find the offers on the products you want. Next, just go to the store and buy them-but, make sure you have a receipt! Then, you can your receipt with the Ibotta app so you can get cash back within 48 hours.
You can use the cash savings sent to Paypal to pay towards your debt.
Sign-up for Ibotta today! It’s savings that can easily be put towards a credit card.
4. Earn Rewards When You Repay Your Debt
Think of it like getting rewarded for doing something good, like paying your bills. I like this concept over having to buy things to get a reward.
MoneyLion, does just this for you. It’s a free app for managing your personal finances, and will reward you for things like paying your bills and monitoring your credit.
Heck, it will even reward you for just setting up an account in the app!
How it works is, you earn points in the app’s rewards program, then you can redeem them for gift cards to more than 15,000 retailers, like Walmart and Amazon.
They even can help with a loan to consolidate your debt and reduce your interest rates. This even earns you rewards!
5. Start Saving Without Trying
Saving money is tough, but when you don’t even notice the money gone, it makes it way easier.
I’ve been hearing about Digit alot around the Internet. What I found out is this money saving app that automates saving for you. Just link it to your checking account, and its algorithms will determine small amounts of money to withdraw into a separate, FDIC-insured savings account.
Additionally, savers will receive a 1% bonus every three months.
When you set-it-and-forget-it, you’ll be amazed at how quickly your savings will add up. After time, you can use it to pay off your balance.
Digit is free to use for the first 30 days, then it’s $2.99 per month afterward.
6. Get a high paying side hustle.
I preach side hustles to anyone looking to get out of debt. This may not fit into working with money you are already spending, but it can help you get a jump on paying it down quickly.
Instacart is a high paying side hustle: This is an on demand delivery service that you can start in almost immediately. You have two options:
- “Full Service Shopper” select your own hours and shop and deliver orders for customers.
- “In Store Shopper” you are assigned a shift to shop for orders in a single store.
Shoppers can earn up to $28 an hour!