No More Debt! 6 Radical Debt Reduction Strategies

debt reduction tips, debt strategies, debt tips

Many people dream of having no more debt. For some, it remains nothing more than a dream, others take deliberate action to gradually pay off all their debt. For a select few, it becomes an all-consuming obsession. They will do everything and anything to have no more debt. If you feel this way, here are some radical ideas that can help you get out of debt as quickly as possible.

Debt Consolidation

Consolidating as much of your debt as possible can help reduce the overall interest rate of your monthly debt payments. This means more of your cash will go to the principal, increasing the rate at which you pay off debt.  A debt consolidation loan also makes managing your debt easier as you have fewer bills to remember to pay each month.

Sell Possessions

Raise a lump sum of cash by selling every personal possession you can. Here are some examples:

  • Unused children’s toys
  • Extraneous furniture
  • Electronics
  • Clothes
  • Tools
  • Jewelry
  • Vehicles

I would bet almost all of us have personal belongings that are just collecting dust, or we could live without. Sell them online, have a garage sale or both. Apply the proceeds directly to your debt. Donate anything you don’t sell to charity, ensuring you get a receipt for your donation that can be used as a tax deduction to reduce your tax bill at the end of the year.

Cut Unnecessary Expenses

Evaluate every monthly expense not just for value, but for life necessity. If you don’t need it to live, you don’t need it. Things you likely can live without:

  • Cable Television
  • Cell Phones
  • Magazine Subscriptions
  • Video and Music Streaming Services

Reduce Necessary Expenses

Next, make lifestyle changes to reduce necessary expenses to a minimum.

  • Insurance: If you need to keep your car, price compares insurance premiums for the very best price. Also, evaluate your policy to make sure it absolutely fits your needs. Do not pay for coverage you don’t need!
  • Utilities: Turn the thermostat down in winter, and up in summer. You’ll get used to the temperature change, and save money. Evaluate your garbage disposal service for the best possible price, and smallest service possible that will fit your needs.
  • Vehicles: If you’re making a car payment, sell the car. If you need a car for transportation, use the cash to buy a less expensive car.
  • Groceries and Household Goods: Slash your weekly shopping bill by buying the least expensive products possible. Visiting dollar stores and buying store brand products will save a small fortune. Stop buying bottled water, or any packaged drinks. Tap water hydrates you perfectly.

Spending Ban

If you don’t need it to live, you don’t need to buy it. No new clothes, home decorations, and furnishing or electronics.

Increase Income

Once you’ve followed the preceding steps to slash your spending to a fraction of what it had been, it’s time to look at the other side of the equation. Here are some examples that will increase your income stream:

  • Ask For A Raise: When was the last time you got a raise at your current job? It’s time to go ask your boss for an increase. The worst that can happen is to be told, “No.”
  • Mystery Shopping: Free meals, free gas, and free cash are all things I’ve gotten by being a Mystery Shopper.
  • Part-Time Job: pick up a few shifts at night and/or on the weekend doing anything you can get a job doing. Apply everything you earn directly to your debt.

These are all extreme and radical ways to increase the money available in your budget to eradicate your debt as quickly as possible. This kind of lifestyle is hard to maintain because let’s face it, spending money and having fun makes life enjoyable. These techniques are meant to be used for the short term until you either have no more debt, or your debt is substantially reduced after which you can return to a lifestyle that includes discretionary spending but remains financially responsible.

How about you, Clever Friends, have you ever thought about taking extreme measures to pay off your debt?

Disease Called Debt

About the author

Brock Kernin


  • Yes to ALL of this. For us, the part-time income is particularly helpful, just because that’s a nice big chunk of cash that can go straight into savings or towards debt. But shopping bans also work. Basically, if we don’t need it, we don’t buy it. I used to spend WAY too much at Target… I’d go in for cat litter and come out with new bedding. I don’t do that anymore, and when we do need something, we aim to get it used.

  • I cut out all unnecessary spending, built a $500 cushion and then put every last penny I had towards my debt. I wanted to make sure I was debt free before I got married last year. It was like having a fresh start.. becoming a Mrs. with no financial baggage.

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