Debt is something that’s easy to acquire but hard to get rid of. It piles up quickly and can get out of control if we don’t keep it in check. I’m going to share some ways to start paying off your bills today and how to stay out of debt.
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Get your debt under control now!
By the time most get out of college, they’re already in thousands of dollars of debt and may not even have a good job. Student loan debt has become an epidemic and then there are credit cards, personal loans, car loans etc. Credit is so widely accepted everywhere, so it’s no wonder it has become the norm. But it can add up very quickly.
I’m on a mission to get out of debt and stay out. There are many different ways to pay off debt and you should figure out what works for you. I know I want to have financial freedom, and staying out of debt is important. It takes hard work and good habits to create a better lifestyle. One of the things I’ve learned is that you have to change your thinking and the lifestyle you live.
Getting out of debt is not so hard once you have a method and stick to it, however if you don’t change your bad habits that got you there in the first place, it will happen again. I know from experience and that’s enough for me to say no more, it’s time for a change.You can't get out of debt living the lifestyle that got you there. Cut out everything except the basics.-Dave Ramsey Click To Tweet
7 Ways to Pay off Debt
- The Debt Snowball. I like this one that Dave Ramsey talks about. Start by paying off a smaller bills and then take that monthly payment and add to the next one and so on to increase the monthly payment. Basically your monthly payment will snowball into a larger amount you can put towards your debt each month and bills can be paid off more quickly.
- Pay off high interest credit and loans first. Using this method the goal is to save money on interest you are paying. So you start with those that have the highest interest rates so that you save money over the long-term.
- Sell items you don’t need. You can have a yard sale, sell items online or whatever ways you can get creative to make some extra cash to put down on the principal payments of your debt.
- Use your tax refund. Don’t buy things that you don’t need or can at least postpone until later. Instead use your tax refund to pay off some smaller bills or take a chunk out of a larger ones.
- Get a side hustle. Yes it may be rough for a little while, but any extra cash to get you out of debt faster is great. Even if you can’t leave your home for a second job, what about working from home? For some ideas on how to work at home read HERE.
- Live below your means. If you have to move to a smaller place, or sell a vehicle, or cut out luxury expenses, do it! It’s only for the short-term, and the point is to benefit you for the long-term.
- Negotiate your terms. Can you apply to lower your interest rates? Maybe change your payment amount? Make a settlement offer for bills in collections? Figure out if there is any way to change the terms of your accounts to benefit your debt pay off plan. After all, it doesn’t hurt to ask, and you may get a yes.
So there’s some ways to get out of debt. Here’s some tips on staying out debt.
- Have a savings plan (Read this post on How to Start a Savings Plan)
- Budget every month. (Check this out for a Sample Budget)
- Continue to live below your means
- Pay yourself first, therefore contributing to your financial goals up front.
- Plan for the future. Think about college, retirement, etc.
- Find deals, never pay full price. With so many retailers competing for our business, there’s always a sale or deal on something. Use Amazon or Groupon, catch off-season sales, shop clearance etc.
- Give back. I believe in karma and giving to others not only benefits those you serve, but it brings joy and meaning to your life.
- Think before your spend. Make your purchase really worth the wait.
- Pay in cash whenever possible. Statistics show time and again that people spend less money when they pay with cash versus cards. (even debit cards)
- Associate with like-minded people. If you surround yourself with people who have similar goals and aspirations, it makes it easier to stay on track.
Get started on paying off your debt. Don’t delay building a better future for you and your family. Like and share on your favorite social media!