Everyone has some debt on their shoulders and if you don’t then congrats! We all know that it isn’t a fun feeling when you are on the opposite end of the stick.
Hopefully this guide can help give you some neat tricks to get out of debt and live the happy life! Slowly but surely, we can all get on that same path!
- Target the easiest bills to pay off. For me, it was my T.V bill. I paid the minimum amount on my other balances then paid a little more on the smaller balance. Eventually the smaller bill was paid off. Once it was paid off, I would take the minimum I put towards the paid off balance and put it towards the second smallest- all while still paying your minimums on the other balances. It may take time, but it is the quickest way to pay it all off. You may have to live completely broke for over a year- but think of it this way- living debt free means less worries for you and your future. It also aids your credit for any big purchases you plan to make.
- I do a dollar collect. Which for me means, I take every dollar I am given that I know I can spare- whether I give up that coffee that morning to get those dollars, and I place them in a jar. Every week or so I deposit them into the bank and put it towards a bill. Preferably, the lowest bill.
- Understanding that you MUST give up some of your habits or have them less frequently. Coffee for me is HUGE. I spend so much money on coffee weekly, monthly, that when my Truebill app comes in- I CRINGE. I get so mad at myself. So now, I limit myself to 2 times a week. When I pay off my debt- maybe ill get the luxury of everyday coffee buying again. Giving up buying anything that you don’t need is super important too. If you don’t need those chips from the gas station or grocery store- leave them off the list.
- Start using cash only. Unless you can control yourself with your cards. I have one credit card that I use, and I only use for gas and groceries. I then proceed to pay it off in the moment. But, the credit card I use also gives me cash back. Which that cash back I use to get some coffee money without actually paying for it. *Wink wink*
- Combine your amounts if you can. If you can’t pay it off above a certain amount within 4 month, then possibly think of transferring your balances on one. Pay one big amount- smaller ones when you can- and pay it all off at once. Don’t use a credit card until you pay that balance off. You don’t want to set yourself up for the same problem. Just remember, interest charges are crazy depending on your APR rates. Don’t consider it unless you understand all that comes with transferring balances. Some cards actually don’t allow that, so you may need to check first.