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Debt can be a crushing obstacle to overcome. So much so that some people live their entire lives under a blanket of bills that they will never pay off.
If you don’t want to be one of these people, keep reading to learn some of the experts’ top tips for getting out of debt.
How to Get Out of Debt
Getting out of debt is not a one size fits all scenario. Individuals and families must take different steps to align their goals and budgets to consolidate and eventually eradicate debt. But, there are a few rules everybody can follow to keep things moving in that direction.
Let’s take a look.
First Things First
Stop spending! The only way you’re going to remove yourself from a situation where debt is piling up is to cut up the credit cards and start saving as much as possible. This can be difficult for some but it’s imperative to stop spending and start saving.
Give Yourself a Reason to Save
Making goals for why you wish to be out of debt can be a great motivation. Think of that dream vacation or putting your kids through college and how important that really is to you. Remember these things when you want to spend money that you shouldn’t.
Skip the Extras
Homemade coffee tastes way better when you’re saving and paying off debt. In fact, to get out of debt, many people give up their favorite indulgences such as coffee or shoes, or even Amazon, gasp. After all, the only way to save is to not buy the things you buy the most.
Create a Budget
While you’re cutting out extras, take the time to sit down and actually write out a budget that you can stick to. Don’t include $3 coffees every day, but feel free to allow yourself one per week so that it will be easier to stick to the budget in the long run.
Make Extra Payments
With all that money you’re saving through sacrifice, send an extra payment along to your credit cards or car payment. Not only will you save money on interest but you’ll be paying down the debt much faster than before.
Pick Up a Side Gig
One of the easiest ways to pay off debt faster is to earn extra cash. Think of it this way, you already created your budget according to the income you already have. That means all of the extra money earned at your new side gig can go to paying down the debt.
Debt consolidation is often considered a last resort as it can impact your credit score negatively. However, for some people, consolidation is the only answer to get over that mountain and find the green grass in the valley where freedom reigns.
Getting Out of Debt
The main thing to remember when you’re drowning in debt is that there is a way out if you set your mind to it.
If you found this post helpful and insightful, take a peek at our Business/Finance page for more tips and tricks to manage your money.