Sometimes debt reduction might be an urgent need if you have not been controlling expenses or have been over estimating earnings or bonuses. I have considered a few methods that can be used in the short run that you can use to find money in the short run to reduce debt.
Use eBay to sell items that you no longer need or use. Check the eBay site to see what type of items are in demand and which items will fetch you the best price. With some experience you can make easy money buying and selling items on eBay. Seasonal trends means that demand and supply hence prices of items change depending on the time of the year. If you have a lot of low value items then a garage sale might be ideal. Using the local newspaper’s classifieds could also get you interested buyers. Craigslist is also full of people looking for a bargain.
Debt restructuring – look closely at your interest rate and bank charges – you may be the victim of a predatory lender – switching to another bank that offers loans at lower interest rates may save you a ton of money. You may need to consult a financial advisor or lawyer before prepaying the loan if the fineprint on the loan looks particularly murky.
Credit Score is extremely important if you want to reduce your finance costs. Paying on time, reducing your debt, debt consolidation and clearing any errors in your debt record can help get you a better rating. Do this before you plan to restructure your debt.
Commission for Big ticket items such as houses, expensive cars etc can earn you big money if you have the contacts that have immediate needs.
Salary advance (from your employer) or pay day loans may be possible if you have a very short term requirement – but ensure that you are able to settle payday loans quickly as the interest rate is prohibitive.
A second job may earn you enough to reduce your debt if you can negotiate enough time to repay the loan. Moonlighting and freelancing has become popular on the Internet. If you
Rent rather than owning your residence can ease financial obligations. Also moving to a lower cost residential area of the city suburb can also help reduce utility cost, school costs, rates etc.
Secondary mortgage can help ease your financial situation – or moving to a smaller apartment can help considerably improve your financial situation. Consider selling your house if the housing market is favourable.
Borrow against your retirement plan or pension plan. Consult a financial how to do this properly it may be considered illegal due to certain tax constraints if you have already claimed tax deductions.
Life insurance companies will also be willing to lend to you keeping your policy as collateral or you may decide to cash in your policy if it is financially favourable.
Government grants if you are a minority, disabled, veteran etc you may be entitled to grants from the government, living in a economically depressed zone – check if you are entitled by visiting relevant government websites. Also private charities provides grants to depressed areas and to certain demographics (disabled, veterans, elderly etc) – a web search may help you find such charities.
Use a debit card instead of a credit card this is an effective way to cut costs and ensure that you spend only what you earn.