Traditional debt abatement is based around the ability to save money on a monthly basis and use it to pay down debt payments. However, in most cases this is a difficult and long process, especially if your debt is big compared to the amount you can save in a monthly basis.
That’s why more and more people are starting to reevaluate the way in which they address their debt and look for creative solutions to get rid of it more quickly and easily. One of these methods is investing your savings successfully so that they grow more quickly than your debt. That way, you have the savings plus the profit you made from investing to put against your loan, paying it down without any significant additional effort.
- Create an Apartment in Your Home
If you live in an area where there is a need for rental properties, consider investing some of your savings into converting the basement or upper level of your home into a separate apartment. The monthly income from your tenant will first cover the cost of the renovation, and then start cutting into your monthly mortgage payments. That way you can either spend less money each month paying your mortgage or else get it out of the way years before you initially thought it could happen. A mortgage is often the biggest loan that an adult takes upon his or herself in a lifetime, so knowing that you are independent of this expense is not just a relief, it’s important for a comfortable retirement and long-term financial planning.
- Buy a House
If you have good credit and you live in an area where real estate is on the rise, you could consider buying a condo or house with the intention of renting it out, even if it means taking out another mortgage. The idea is that if you find a tenant to pay rent that is at least equivalent to your mortgage, you have none of the monthly costs, but benefit in the rise in equity that the property gains over time. In the event that you want to get out of the rental game, you can always sell the home, recoup your down payment and get a payout thanks to the rise in the value since your initial purchase. With the money you can either pay down your house’s mortgage or pay down other debts.
- Make Safe Investments
Those who want to see more immediate results and have a better understanding of the stock market can decide to make a different type of investment. Though the risk is greater with trading, some see really rewarding results, especially if done in an informed and sensible fashion. Before embarking on something like this, we recommending doing some in-depth research and a visiting one-stop online location for expert futures trading recommendations and opinions. If it’s debt abatement you are after, being conservative in your trading is wise, especially since getting out of the red is the goal, not racking up more debts.
Hardly anyone is comfortable living in debt, especially if it is significant and limits the way in which you love. Though investing your money can be an effective way to raise the funds to cover your loans, it’s important to not lose sight of the goal. Before being able to make any decisions with your savings, you have to have some. That often means decreasing your spending and increasing your means through more work or side businesses. Once you have a big enough sum, you can then consider investing it to multiply it and with that, pay off your loans. The advice of a seasoned financial advisor is always a good place to start, and his or her advice should be factored into your future plans.