8 Creative Ways to Get Out of Debt

Shutterstock.com

America is in a debt crisis.

The average household has over 16 thousand dollars in credit card debt, 28 thousand in auto loans, and 49 thousand in student loans.

The total debt owed by American consumers? 747 billion dollars.

Many of these debtors, particularly credit card owners, take on this debt in order to bridge the gap between income and expenses. This is disastrous as a lifestyle, and results in an ever-accumulating pile of debt from which there seems no escape.

But because debt has become so normalized, it becomes easy to forget its true nature. Debt holds you back. It’s the chain that binds you to those you owe, and a weight that is continuously hung over your head—one that can drop unexpectedly.

It’s time to set yourself free.

Getting out of debt is as simple as making the effort to increase your income and conserve that income, and there are hundreds of inventive ways to do this, some of which may surprise you.

To get you started, let’s take a look at 8 creative ways that you can get out of debt.

Write

Shutterstock.com

Have a penchant for words? Are you a monster with metaphors? Got an affinity for alliteration?

Then writing may just provide you with the supplementary income you need to get out of debt faster. Writing articles for various websites can net you anywhere from 25 to 200 dollars per piece, and so if you’re a fast writer, you can generate a lot of cash over the span of a weekend.

Begin this process by identifying your areas of expertise. This could be parenting, theology, gender studies—make a list of topics you know well, or love enough to research.

Got that? Good. Now find a list of websites that pay writers for articles, and locate the ones that match your chosen specialty.

When you find a few publications that match you, read their submission guidelines very carefully. This cannot be stressed enough. Read every word. Your submission lives or dies by these guidelines.

Next, make sure that you read the content that already exists on the site—every publication has its own unique tone and voice. You’ll need to match this.

If you’re able to do these things, start submitting pitches! And don’t just stop after you submit one—keep going. As soon as you submit one article or pitch, move on to the next.

That’s how you make money, and that’s how you help dig yourself out of debt.

Drive

With the advent of driving services like Lyft and Uber, it’s easy to grab some part-time cash in the evenings. And the best part is that you can do it in your own car.

These services, which are far less expensive than hailing a cab, are booming, and if you’re the type that enjoys a good drive and has a head for navigating, it’s a perfect way to make up to 35 dollars an hour on a busy night.

There are a few requirements that should be observed beforehand. These companies require that you have a newer vehicle—2004 and newer for Lyft—and that you be 21 years of age and insured to drive a 4-door car.

You also have to own a current smartphone that is capable of running the company’s app, which you will use to take customers’ requests.

Finally, you’ll need to have a clean driving record. If you have a string of speeding tickets, you may want to stick to the other items on this list.

But if you meet these requirements, ride-sharing is one of the best ways to generate some extra income in your spare time that will help you get out of debt all the faster.

Try it out!

Use the Envelope System

Shutterstock.com

Dave Ramsey is a financial genius, and one of the most effective savings techniques he advocates is the envelope system.

This age-old system one of the best ways to trick yourself into spending less. To use the envelope system, begin by creating a simple budget. This could be something as easy as dividing your spending into “Fun,” “Groceries,” and “Rent”.

Once you’ve created these three hypothetical categories, grab an envelope for each. Write the name on the envelope—for example, you’d put down “Groceries” on the groceries envelope.

Now, at the beginning of the month, head on over to an ATM and get out the amount of money you’ve budgeted for groceries. If this is 250 dollars, you’ll be placing that amount into the envelope.

This is your grocery money for the month. Use it for nothing else. Spend it wisely, because what you’ve budgeted is all you get.

The act of spending physical money is painful. It feels like a loss, and so we’re more acutely aware of our spending. Thus, we spend less.

Use the envelope system on the budget categories that you tend to overspend on—this puts a hard cap on how much cash you can actually dish out.

Do this, and you’ll soon be able to put more money where it needs to go—paying off your interest-accruing debts!

Recycle

Shutterstock.com

Most people groan when someone suggests making some extra cash through recycling, but there’s more to the art of reuse than you think!

Recycling is more than just taking trash bags full of cans to the collection center for a few cents.

For instance, if you’re a wine lover, you can collect your corks and sell them to crafters on Ebay for about 10 cents each. And the bottles? Those can net you anything from 50 cents to 5 dollars!

Electronics are even more profitable. Companies like Eco-Cell offer cash for old cell phones and other electronic items. You’ll keep these items from overcrowding landfills and make a little cash at the same time!

The most profitable items, however, are metals. If you have an old vehicle that’s been languishing in your yard, or if you’ve recently torn down a shed or other building on your property, don’t have the remains carted away to the dump—you could be missing out on big bucks!

Instead, take a look for some of the most valuable metals—aluminum, copper, and stainless steel. Copper, for instance, yields nearly 2 dollars per pound when recycled.

If you’re on a quest for supplemental income, recycling is something that the whole family can get in on. Locate your nearby collection points, identify what items can be sold to crafters, and look over your home and yard for valuable “trash”.

When digging your way out of debt, every bit helps.

Negotiate

Shutterstock.com

Did you know that most companies will allow you to negotiate your bills—even for things like electricity, internet, and cable?

Negotiation is scary. Most Americans don’t have much experience negotiating—we’re simply accustomed to paying the price on the sticker without a thought.

But with things like utilities, insurance, and yes, even debts, negotiation is key.

This is because these are highly competitive industries. Sometimes, you can get a better rate by simply calling in and letting someone know you’re looking for a better rate, or a way to save on your monthly payments. Since they want to keep you as a customer, they may just acquiesce.

Even things like rent are often negotiable. When your lease is up, ask your landlord for a deal—after all, you’ve been a great tenant, right? Perhaps you can sign a longer-tem lease for lower monthly payments.

The point is this: it never hurts to ask. It may feel embarrassing, but the very worst that can happen is a “no”. That’s it.

So if you want to climb out of debt faster, give those creditors a call, followed by your landlord, and your utility companies. You just might be surprised at what you get.

Share Your Space

Have you heard of home-sharing services like Airbnb? Do you have a plethora of empty rooms in your home?

It might just be time to share that space to help you get rid of some debt.

At the simplest level, this looks like getting a roommate. Do you have an extra bedroom? Invite a trusted buddy to come live with you and share the expense of your home!

If you’re feeling more adventurous, though, try out a home-sharing service. Especially lucrative if you live in a popular location, renting out a room in your home during high-demand times like concerts, conventions, and graduations, can net you big bucks.

If you do this, though, be sure to put away valuables first—you’re going to have a stranger in your home, after all.

Airbnb allows you to review a potential guest’s past stays, their personal details, and their social media accounts, so the process isn’t as scary as it seems. But don’t be afraid to ask for more information about your guests to make sure they’ll be a good fit.

Do this well, and you can potentially add a significant bit of cash to your bank account, so don’t discount the idea of sharing your home during your quest to alleviate debt.

Get in Shape

Going to the doctor is expensive, and even with insurance, co-pays can whittle down your bank account in no time, leaving you with little cash left over with which to pay your debt.

Physical fitness is one of the most overlooked holes into which we throw our money. When our bodies don’t get good nutrition and adequate amounts of exercise, they break down. Our health degrades, and we’re forced to seek care. In addition, we end up fatigued and unable to pursue other potentially lucrative opportunities.

Don’t let this happen to you. Save money by proactively taking care of your body so that you don’t have to pay for expensive medical procedures later.

The minimum recommended amount of daily exercise is about 30 minutes of aerobic activity—this can be a walk, a jog, or even a journey up and down the stairs a few times. You don’t need a gym membership—just good old outdoors.

Make it a point to do this once a day. If you’re really feeling ambitious, up it to an hour—you’ll feel the benefits within a few weeks.

And don’t forget nutrition! Eating a balanced diet will not only give you more energy, but will stave off potential doctor’s visits just as powerfully as exercise will.

In combination, a good diet and exercise can help you save money and avoid potentially crippling medical debt.

Sell

Shutterstock.com

Most people would be shocked to know how much extra income they can make simply by selling unwanted household items. It just so happens that this is a great way to start whittling away at your debt.

Websites like Craigslist and eBay make it incredibly easy to sell off your old stuff for far more than you’d get at a pawn shop or consignment store.

Remember those garage sales your parents used to host? You can do all of that online now, and reach many more eyes than that old “yard sale” sign ever could.

Take a hard look at what you really need in your home. Is there anything that’s just taking up space? Do you have a dresser that stands empty all the time, or perhaps a car that is rarely used? If so, it’s time to sell!

Your possessions aren’t the only things you can sell. There are many clinics that will pay you to donate plasma. You can place ads on your car, for which some companies will pay you hundreds of dollars per month. If you’re an expert on something, you can sell your time in the form of consultations.

One of the most lucrative ways to sell, though, is by “flipping” old items—buying things off eBay, Craigslist, or local yard sales, refurbishing them, and selling them for a profit. A good rule to live by when doing this is to never accept less than 25 percent more than you bought it for, and never spend more than 75 percent of an item’s list price.

You can only help your debt situation by creating both more room in your house and more supplementary income, as well, so get selling!

7 Ways to Lower Your Grocery Bill

Inflation is driving prices up. Read next feature >

Dakota Fanning Says Becoming a Mom is...

Patrick Swayze's Widow Says Star Knew...