Let’s face it. Being in debt isn’t fun. Actually… it sucks! No one enjoys creditors calling at all hours of the day or night. Who wants to find new ways to juggle expenses just to make ends meet? And the simple task of just paying the bills can take hours when there are tons of payments to stay on top of.
Believe it or not. There is a way out. You can get free of the overwhelming debt once and for all. Here are a few tips that will get you back on track.
1. Save some money – You always need to have a little bit of cash on hand in case of an emergency. Before you begin to knock out your debt, keep all spending to a minimum including debt payments and save as much as you can, preferably $1000. You don’t want to go back into debt simply because you didn’t have money stashed away for those inevitable emergencies.
2. Quit borrowing money – Yes, this should go without saying but it is an important step. You may need to cut up your credit cards. It is probably a good idea to at least get them out of your wallet. When I was in debt, my husband and I put our credit cards on ice. We literally put them in a bowl of water and froze them! No matter how you structure your discipline, make sure to stop using credit in any way. It will defeat your efforts if you don’t stop the bleeding.
3. Budget – I know! Everyone hates this word. But adding up your income vs. your expenses is the best way to find money! Review 30 days of spending in your bank account. Find out where all of your money is going. Then create a plan before the next month begins which details out where you spend your money. If you don’t gain control in this way your money will find a home of its own. For me, uncontrolled money is spent on unplanned dining out or clothing. 😊
4. Use CASH! – Your grandma used to do it and she probably didn’t have any debt. Take a play from her book and try to use cold hard cash for 30 days. It doesn’t have to be forever. Just try the idea and see how your spending changes. You just might find that you don’t need to spend as much on certain things. Then more money can go to towards your debt reduction efforts.
5. Sell something – There could be tons of things around your home that are collecting dust or not serving you well. Give it another home by allowing someone else to buy it from you. There are neighborhood sites, eBay, garage sales, etc. where you can sell items you no longer need or use. Make it a game and see how much you can earn by selling things.
6. Get a part-time job, do overtime, start a business – Think about how much extra time you have and put it to good use. There are plenty of ways to use your gifts and talents to earn a little extra income. Just $500 per month more might be the difference in paying off your debt in months rather than years. Calculate the difference some extra money would make in your budget. That just might be the extra incentive you need to finally get free of your debt.
No matter where you are in your journey, any one of the steps above can make a difference in your finances immediately. Don’t strive for perfection. That is a goal no one can achieve. Instead focus on progress. Just one step towards your goals is progress in the right direction.
Need some help with your strategy? Set up a Debt-Free Strategy Session with me to get more clarity on your personal next steps or t. simply get unstuck. Click here to set up a time.