If there is one thing that is causing us too much stress, that would probably be debt. Whether it’s credit card bills, student loan and other monthly expenses, this experience can definitely be overwhelming. And when there is interest being stacked on top and you are living paycheck to paycheck, you probably feel that getting out of it is impossible.
Well, we are certainly on the same boat! But thankfully, there are a lot of tips and strategies out there that will easily help us get out of it. That’s why today, I have decided to gather 6 things that you can do to get out of debt. These strategies will certainly motivate us to commit in decreasing our debt and start saving for the future. So, check them out!
Create a practical and realistic budget
It can be difficult to take control of your finances if you are not willing to create a budget or spending plan. You have to make sure that you create a budget that is realistic, a plan that you would be willing to commit to. Address all your monthly expenses, like rent, food, bills and utility expensesthen track and check your spending habits and see what areas you can cut back.
Like, if you are constantly eating out for lunch, or getting your coffee from Starbucks, start by changing those things. Bring your own lunch to work and drink your coffee at home. Remember, that changing your lifestyle and spending habits is crucial in getting out of debt.
Create an organized budget system
This tip is certainly awesome – perfect for budgeting! Get yourself one of those plastic accordion file folders then label each folder with your monthly expenses, like groceries, utility payments and rent, then place the amount of money that’s needed on for each bill. This trick will help you avoid overspending and it helps you keep track of the amount of money you spend on every necessity. So, try this today!
Prioritize your debt
All of us wants to get out of debt, unfortunately, one of our most common mistake is not focusing and prioritizing it. We let ourselves lose track of the current debt that we have and we keep adding more. I’ am also guilty of this, then I realized that I’ am not really finding a solution, instead I’ am just adding to the problem. Start by making do with the cash that you have, hide all your credit cards, or you can start writing down all the debt that you want to get rid of, include the total amount that you have to pay and tape it on your credit cards. So, the next time you are tempted to use it, you will be reminded that you are just adding to the problems.
Make use of any unbudgeted income
If you receive any tax refund or bonuses, forget about expensive vacations or buying the latest gadgets. Instead, put all of it towards paying off debt. I know it may seem hard and oftentimes, if we have the money we are easily tempted to splurge it but before you do that, think of how great and relieved you would feel once you hit that zero on your debts.
Trim down expenses
List all your monthly expenses and check if there is anything that you can completely cut out. Like, is it really necessary to pay for cable every month? Are you willing to do workouts at home and stop paying gym memberships? I know sometimes, some things are hard for us to cut off since we are so used to living that kind of lifestyle but remember that it may be hard now, however these changes will certainly turn into big gains later.
Increasing your income is definitely the best way of getting out of debt sooner. Consider getting a second job, try taking side hustles or find something that you can sell.
If you have extra time, the best way to go is to find a part-time job. There are a lot of jobs that you can do during you free time, some of it can even be done in the comfort of your own home. Increasing your income will certainly take down the amount of time you spend in paying off debt.
Check out this post about side hustles that you can do at home, this may help you out.
Getting out of debt is not of piece of cake but as long as you are willing to make those necessary changes and commitments, it is definitely not impossible. It doesn’t matter how big or small your debt is as long as you are willing to focus on your goal, it will make so much difference. So, try these tips and let me know what you think!
Do you have anything to add on this list? Let me know in the comment section below or send me an email, I would love to hear from you!