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5 Tips for Raising Money to Pay off Debts

Life has a funny way of throwing challenges at you when you least expect it and this can often occur in the form of unexpected expenses. When you’re hit with a major bill, whether it’s medical, tax, car repairs or whatever else – you may panic, wondering how you’ll ever be able to pay it off, but don’t fret too soon!

Fortunately, all is likely not lost, as there are many practical ways to raise money quickly. If you’re facing a debt problem and looking for effective solutions, here are some quick and simple ways to raise money fast:

Sell Valuable Stuff

Parting with personal possessions is never fun, but it may be necessary to get out of debt fast. If you own valuable items that you could see yourself surviving without, then consider selling them. Try hawking your items on eBay, Craigslist or any other online selling platform. Alternatively, if you want to do it in person, you could try selling things at a swap meet or even seeing how much you can fetch at a local pawn shop. You never know, you may be able to raise enough money to get debt free simply by selling stuff you rarely use, so definitely give this option some serious consideration.

Take on Extra Work

Extra work can be a major bummer, as it will ultimately mean time away from your friends and family and less spare time to enjoy yourself. However, taking on extra work may be necessarily to escape from overwhelming debt. Ask your current boss if you can do some overtime by putting in extra shifts, or if you’re self-employed, try to take on some additional clients. If all else fails, consider doing odd jobs for your neighbors or babysitting your friends kids. When trying to get out of debt, remember that every little thing truly does count.

Get a Title Loan

If you own your car in full (or only have a few remaining payments) a car title loan could get you the money you need to get out of debt without having to sell or pawn your car. With a title loan you will be awarded cash in exchange for temporarily handing over possession of your vehicle’s title. Once you’ve repaid your loan, you’ll get the title returned to your name, but best of all is that some title loans are available without having to give up even temporary possession of your vehicle. These lenders will provide you with the cash you need, take possession of your car’s title, but you continue to drive your car and use it however you like as long as you keep making loan repayments on time. It may not be your first option, but if you need to raise thousands of dollars quickly, it’s definitely an opportunity worth looking into.

Borrow Cash from Friends and Family

 You may want to consider borrowing money from friends and family, especially if all the other options haven’t allowed you to raise the money you need. Many people find asking for money from friends and family rather embarrassing, shameful even, but if needs be, it could be worth the loss of face. Of course, there’s no guarantee that they’ll accommodate your request, but if they do, you may not have to worry about interest and you’re likely have an easier repayment schedule to work within, but the downside is that you may risk losing friends over money disputes. Only pursue this tactic if you’re 100% sure that you can pay back your loan!

Downsize Your Lifestyle

One of the most practical ways to get out of debt fast is simply to downsize your lifestyle. What are you overspending on? Is it rent, your car or your monthly shopping expenditures? Whatever it is, cut back as much as possible to make way for more money being put toward your debt. Even if you just cut back on a few minor aspects of your life, you will likely be amazed at how much this can amount to in savings. To maximize your progress, stop eating out, don’t buy new clothes and avoid taking any vacations until you’ve completely paid off your current debt.

Getting out of debt fast takes a lot of initiative as well as a willingness to make serious sacrifices. Use the above tips to help you get out of your debt and onto the road of financial recovery. You can do it!

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