At one point or another, most of us will find ourselves feeling like we have unwanted debt. It happens to the best of us, and sometimes it sneaks up on you. We sometimes struggle between WANTS and NEEDS. Sometimes we are great with our money, but unexpected things come up that are totally out of our control (medical bills, high utility bills, car repairs, and so forth). The biggest thing to remember is that debt does not have to control your life, you can control the debt.
5 Easy Steps to Pay Off Debt:
1.) Budget: The best way to get back on track is by tracking your funds. Know where your money is going and set a budget. Try to stick to the budget as best as you can so that you don’t fall back into the debt trap.
2.) Start Small: Many people say to start with your largest debt and work to pay it down, but we believe that you feel more accomplished starting with the smaller debts. Start with one debt and work to pay it off. Once that debt is paid off you will feel proud of yourself and it will motivate you to continue to work to pay the other debts down.
3.) Make Extra Payments: Make sure you are not just paying the minimum balance on your debts each month. Every month more interest will be added and if you are simply paying the minimum payment it is going to take you a very long time to pay the debt off.
4.) Transfer the Balance: If you are able to get a new card with a 0% Balance Transfer, then it may benefit you to transfer the balance from a high interest rate card to the zero percent card. Just make sure you pay extra and can have that card paid off before the interest kicks in.
5.) Stop Unnecessary Spending: This probably should be bumped to the #1 spot. It’s really a no-brainer. If you want to get out of debt, then you need to slow down your spending.
One of the most important things to remember when you are trying to get out of debt is how you got there. You’ll start to pay down your old debt and will be feeling quite good about it. You don’t want to slip up and get back into debt once the debt is paid down.
We hope these tips were helpful. Best of Luck!
Getting out of debt can be very tricky. It’s amazing how helpful tracking your spending can be.
Super ideas. I do think Make Extra Payments is a great idea if possible. We did that for my mortgage.
This advice is something that everyone should read — BEFORE they get into debt!
I like the idea of starting with smaller debts first. The energy and satisfaction of accomplishing something will help you to continue to work on those larger bills!
Ty for the tips!
wow that was fast; i need this info so much; thank you!
In my opinion, this should be a class on the school’s curriculums! Then students can learn about not getting into debt in the first place! Parents can also teach their kids about budgeting their children’s allowances. How to make it last or how to save! These are excellent points!! I pinned it for future reference and shared on other Social Media. Read and learn these points before you are still paying off debt when you are senior citizens!! Thank you for sharing!
Thanks for the tips. With covid, debt is stacking up for so many. of us
I felt that tracking my spending was a great first start to managing my money and debt.
I have a budget and stick to it. Currently have no debt.
Don’t buy what you don’t really need. Save more.