7 Sources of Funding to Pay off your Debts

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About the Author:

Ray is a sought-after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.

If clearing all of your current debts is a priority for you, identifying funding sources to accomplish this goal is essential. With this in mind, these are seven sources of funding to pay off your debts. 

1. Put Your Tax Refund Toward Your Debts 

While it can be tempting to take your tax refund and put it toward new purchases or a family holiday, it could be used as a source of funding to pay off your debt. If paying off your debt is a priority, then your tax refund is one of the most straightforward ways to make a dent in the amount that you owe.

2. Pay Off Larger Debts by Tapping Into Your Savings 

Another source of funding for paying off your debts may be money that you already have in your possession. Having savings set aside for future needs is always a good idea. However, it may be beneficial to put those savings towards the current debt that you owe. 

3. Start a Side Business 

These days, the opportunity to start a side gig for extra money has never been easier. Whether it means using your skills for freelance work online or becoming a driver for an app-based service like Uber, a side gig can be an excellent source of funding that can go directly into paying off your debt.

4. Consider Selling Valuable Items You Can Live Without

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Whether it is a second car, valuable electronic equipment, or furniture, selling off items you can live without is a great way to raise funds to pay off debts.

5. Borrow Money From Trusted Family Members 

Though it might not be the first route you want to choose, turning to family members for a cash loan is another source that you can consider when looking to pay off your debts.

6. Downsize Your Living Accommodation 

If paying off your debts is a priority, you may consider downsizing your current living accommodation. The money that you save could go directly into paying off debts.

7. Rent Out a Room in Your Home

For those that have available space in their home, renting out an area of your living accommodation can be another way to bring in additional income.  

For more information on consolidating your loan, check out Rapid Loans.

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