3 Ways to Tackle Leftover Debt From 2022

The sooner you shed that debt, the better.

If you're starting off 2023 with leftover debt from 2022, you can rest assured that you're in good company. A lot of people were forced to rack up credit card balances just to cover basic expenses last year as inflation surged. And many people routinely end up with debt following the holiday season. So if you were forced to charge things like gifts and travel on your credit cards and deal with the aftermath later, you're not alone.

But lingering debt can be problematic on several fronts. First of all, the very idea of being in debt could mess with your head and cause you a world of stress. And also, the longer you carry your debt, the more you might end up paying in interest. That's money you could be using for other purposes, like building your savings or covering everyday bills.

If you're eager to shed your leftover debt as quickly as possible, here are three essential moves to make.

1. Get on a budget

Following a budget won't make your debt magically disappear. What it will do, however, is help you limit your non-essential spending and free up money for debt payoff purposes. Also, having a budget will give you a better sense of where your money goes month after month. And having that knowledge could prevent you from racking up debt in the future.

2. Get a side job

It'll probably take money beyond what your regular paycheck delivers to dig your way out of debt. And while cutting back on spending and spending mindfully will help, an income boost could be your ticket to ridding yourself of leftover debt quickly.

To that end, look at getting yourself a side hustle. The gig economy is loaded with opportunities to pick up extra jobs. And since that money won't be earmarked for existing bills, like food and utilities, you can dedicate it to paying down debt.

3. Do some consolidating

Consolidating your debt might make it easier to keep track of and less expensive to pay off. And you have a few different options in this regard.

You could take out a loan and use the proceeds to pay off different credit cards. If you own a home, a home equity loan might be a good choice. And if you don't have home equity to tap, you can look at a personal loan.

Another option is to move all of your credit card balances onto a single card, and then pay off that one card month after month. Many balance transfer offers come with a 0% introductory APR, too, which buys you a reprieve from accruing interest as you work to get out of debt.

Starting off a new year with a pile of debt from the previous year can be a blow to your finances and mental health. And so it's in your best interest to unload that debt as soon as possible. These tips could be your ticket to doing just that -- and getting to move forward with a debt-free slate.