You might be forced into applying for a loan because you don’t have savings. It doesn’t mean you should wait multiple years to pay it back. If you find a few good ways to make extra money going forwards, you can say goodbye to it fast.
Let’s look at a few ways to generate extra funds within the next year or two. You’ll feel safer applying for your loan even if the interest rate is high. Just be prepared because you’ll need to make some sacrifices.
1. Rent Out Your Second Home
When you live somewhere populated like Ontario second mortgages allow people to get holiday homes in the countryside. If you want a home to visit when you escape the city, don’t leave it unoccupied when you’re not there.
You won’t be able to rent it out full time because you won’t be able to enjoy it. Think about putting it on a website like Airbnb instead. It will allow you to earn a little extra money to put towards your second mortgage.
2. Teach English On Your iPad
Some people around the world are desperate to learn English so they can find work in the tourist industry and international businesses. If you sign up for the right apps, you will get paid to talk to them for a while.
You don’t need to worry about a lack of teaching qualifications. Just choose a company that wants you to have 1-on-1 conversations with students. All the cash you earn can go towards paying your small loan ASAP.
3. Freelance In The Evening
It’s good to keep the same job when applying for loans. You could end up with a mortgage not approved before closing or other problems. That doesn’t mean you can’t freelance in the evening once you’ve clocked out.
If you work in the software industry, you’ll find freelance clients. People who work in the film industry could edit YouTube videos for content creators. Learn a skill if you can’t find freelance work in your chosen field.
4. Pay Extra When You Get Paid
People promise themselves they’ll use the money they have left at the end of the month to pay off loans. Unfortunately, you won’t have anything left because you’ll spend it. You must take the exact opposite approach.
Put extra money towards your loan at the start of the month. You’ll be forced to survive on whatever is left, which will help you save more. Just don’t put too much towards the loan because you need to feed yourself.
5. Consolidate All Your Debts
If you have many separate debts, it will be tough to pay them off fast. You’ll end up with penalties when you forget payments. What if your interest rate suddenly shoots up? You can solve the problem by getting a small loan.
Consolidating all your debt into one monthly payment makes things easier, so you’ll pay off everything faster. Just make sure you choose a loan provider that offers a low fixed interest rate so you save money.
Don’t Waste All Your Money
It’s okay to treat yourself a little when you’re in debt, but try to pay extra towards your loans too. Your life will be a lot more comfortable once you’re in the black.