In today's world, it sometimes seems as if everyone is in debt to some degree. Between car payments, mortgage payments, credit cards, student loans, and other types of debt, it's easy to see why the average person is nearly $90,000 in debt. If you are determined to put debt behind you in 2022, the good news is that you've got plenty of viable options at your fingertips. As you begin discussions with your CPA as to the best ways to tackle your debt, keep the following tips in mind.

Pay More than the Minimum

If you really want to see your debt disappear very quickly, your CPA will agree that paying more than the minimum due on credit cards each month is an effective strategy. Of course, you'll need to plan your budget very carefully to ensure you can manage the extra bit of expense. Otherwise, you could be creating a new problem while tackling an old one. Along with ridding yourself of debt, your CPA will also remind you that you will likely save thousands of dollars in interest along the way. If credit cards are your main debt issue, this is a smart strategy to use.

The Debt Snowball

While you probably have some large debt, chances are you also have debt amounts that are relatively small. If so, you can use the debt snowball method to your advantage. With this strategy, you focus first on paying off your smaller debts, then work your way up to the larger ones. Along with getting rid of some debt in a short period of time, this strategy also gives you early success in your battle against debt, helping to keep you motivated as you tackle larger amounts.

Pay Off Title or Payday Loans Immediately

If some of your total debt includes payday loans or title loans, your CPA will emphasize that you pay off these loans as quickly as possible. While credit cards have high interest rates, remember that most payday or title loans have interest rates approaching a whopping 400 percent. In fact, it often makes sense to borrow money elsewhere—at a lower interest rate—and pay off higher interest titles and payday loans with it.

Refinance Your Debt

Refinancing your debt can also help you to ultimately eliminate your debt. You could refinance your auto loan, mortgage, student loan or personal loans. Though interest rates have risen over the past few months, you can still come away with interest rates that are lower than your existing debt, especially if you use a debt consolidation loan. Should you have credit card debt, take advantage of balance transfer offers. By doing so, you might be able to transfer debt to a card that will have a 0% APR for up to 18 months.

Get a Windfall? Apply it to Your Debt

If you happen to receive a windfall of money, such as a tax refund or maybe money from an inheritance, apply it toward paying off your debt. While you may be tempted to use your windfall to take a vacation or buy something you've had your eyes on for a while, using it to pay down your debt will benefit you far more in the future than any immediate satisfaction you may get from a purchase.

Negotiate a Settlement with Your Creditors

If you have a tremendous amount of debt that may be almost impossible to pay off through normal means, you may be talking with your CPA about filing bankruptcy. However, only do this as an absolute last resort. Instead, consider contacting your creditors and negotiating a settlement. Another possibility is to work with a third-party debt settlement company, although you will need to carefully select a company that is legitimate, charges nominal fees for its services, and has a verifiable track record of success with past clients.

Consider a Side Hustle

As more and more people grapple with debt, many are turning to a side hustle as a way to earn money to pay down debt. If you want to give this a try, you have lots of options, such as being a driver for such services as Uber or DoorDash. Also, you could take on a conventional part-time job at a local store, or even find online work opportunities you could do from home. Once you start looking around, you may be surprised at just what is available to help you earn extra money.

Take a Closer Look at Your Budget

Even if you have created a budget that you think is bare to the bone and have cut out all unnecessary expenses, take a closer look at your existing budget. When you do, you may find you can do a few things to help you save a few more dollars each month. For example, you may discover that you can cut your entertainment budget a bit more, or maybe opt for a monthly smartphone plan that is cheaper than what you currently pay.

Ask for a Raise

You may be able to tackle your debt problem by convincing your boss to give you a raise. As today's employers struggle to keep current workers and hire new ones, your boss may realize giving you a raise is much easier than trying to find someone who can fill your shoes five days per week. Just be sure to use any extra money to pay down debt, and don’t be tempted to spend more.

Stop Investing

If you currently contribute money to your 401(k) plan, stop doing so for a few months while you're trying to eliminate debt. Once you do, you'll find you may have enough money to get yourself debt-free much sooner than you expected. After you’re debt-free, be sure to resume saving, because this will give you financial security in the future.

While getting out of debt in 2022 can be challenging, it’s not impossible. By relying on the advice of a CPA you know and trust, it won't be long until you can kiss your debts goodbye.

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