NEW YORK, February 10, 2023 (Newswire.com) - iQuanti: With the holidays coming to a close, it's time to look ahead and make sure you're paying off those leftover debts from last year. The APR for personal loans is typically lower than that of credit cards, making this an attractive option for consolidating debt: it will cost less interest overall and can reduce your monthly payments considerably. That said, it's also crucial to remember that repaying debt responsibly requires discipline: you'll need to stay organized with budgeting, use proper money-management skills, set short- and long-term goals - and yes, commit to them! Successfully taking control of your finances in this way benefits both your financial health and your peace of mind.

In addition to consolidating debt, this article will discuss how to get rid of your debt from last year. Several options exist. All you have to figure out is which of them makes the most sense for your unique situation.

1. Take Out a Personal Loan

You might consider personal loans if you have several outstanding debts from 2022. Credit unions and banks offer personal loans. Either of these can be reputable entities.

You can take the money from a personal loan and pay off all your outstanding debts. By doing so, you make your repayment schedule less complicated. 

You can go from owing several different entities to only owing money to a single one. Many times, it's that simplification of your repayment schedule that will assist you in becoming debt-free during the new year. 

2. Hunt for a Job that Pays More

Looking for a job that pays more in the new year can also get you out from under the debts you accumulated in 2022. Maybe you feel that you've reached the limit of what you can achieve in your current position. You don't see a path to a promotion and a raise that can accompany it.

If that's true, you can update your resume and look for jobs online. You can use sites like Monster, Indeed, and LinkedIn. If you don't have a LinkedIn profile yet, you should create one.

Getting a job that pays more will free up more money that you can use to pay off your debts from 2022 quicker. Don't rest until you find a new position that pays you a salary that matches your skill set. Being complacent at your current job isn't going to help you if you're sure there's no raise or promotion in your immediate future.

3. Don't Accumulate Any More Debt

You can also work on paying off what you owe from last year without accumulating any new debt. Often, debt piles up because you keep accruing new debts before you can pay off your existing ones. If that's happening, it's a sure sign you need to curb your spending.

Don't live an extravagant lifestyle. Limit the number of times you go out to dinner. Instead, buy bulk food items and use them to make low-cost meals. Purchase clothing at second-hand stores like Goodwill instead of buying them brand new. If you can put off shopping for new clothes, do that.

If you need a new vehicle, get a used or certified pre-owned one instead of buying the latest model. Only spend money on home improvements if they're unavoidable. 

Conserving money in all these ways will let you put the cash you've saved toward paying off your 2022 debts. If you're determined and don't mind living this way for a while, you should see positive results.

You Can Get Rid of Last Year's Debt

Getting rid of last year's debt can be challenging, but you can do it if you're determined. You can save money to put toward debt from 2022 by living frugally. Eating in restaurants less often, shopping for second-hand clothing, and taking similar measures leaves you more money to put toward your outstanding debts.

Hunting for a new job that pays more is another viable option. Spruce up your resume and look for jobs on sites like Indeed, LinkedIn, and Monster. You may also consider taking out a personal loan and using the money from it to pay off all your other outstanding debts. Having one creditor to pay back will simplify the process.

These tips should help you get rid of last year's debt. It may not be easy, but it's always possible.