7 WAYS TO SAY GOODBYE TO DEBT QUICKLY
Debt is scary. It’s as simple as that. When you first get your credit card or when you start buying things on credit, it can be easy for it to snowball until you’re in debt that you’re not sure you can get out of.
Many of us have been there but it’s not all doom and gloom! There is always a way out of debt and it’s important to nip it in the bud before it escalates to a point of no control. Managing money isn’t an easy task and there’s no shame in finding yourself in some debt (it’s probably happened to more people than you know).
But let’s see how you can get out of your sticky situation as fast as possible.
7 ways to get out of debt quickly
1. Figure out how much debt you’re in
As a first step, you’ll want to list all of the debts you owe from smallest to largest.
This will put into perspective how much you owe and you can figure out a plan on how to pay it all back.
2. Start planning how you’re going to pay it back
Start with the smallest balance and throw in any available money you have at this amount while you begin making the minimum payments on all your larger loans. Once the smallest balance is paid off, start putting that extra money toward the next smallest debt until you pay that one off, and so on.
Keep going until all your small debts are covered and you’re making your way through the bigger ones.
This is just one effective way of settling your debt, you need to figure out what will work for you.
3. Pay more than the minimum payment on your credit card
Credit cards are simultaneously the best and the worst. As you move your way out of debt, make sure you’re paying more than the minimum requirement. As you pay more each month, you will stop creating big amounts of debt that will keep you starting this process over and over.
4. Pick a side hustle
If you find that you’re struggling to find your way out of debt with the income you have, find a side job that can earn you some extra cash that’s solely devoted to paying off your debt. Find a job that’s easy to manage part-time or use a special talent you have to earn some extra money.
5. Create (and live with) a bare-bones budget
Create a realistic budget and list all of your expenses and your income. This budget needs to have no unnecessary expenses and needs to list only the necessities.
This will be a difficult budget but it will help you to have all the cash you can to pay off those debts and then you can start buying your morning cappuccino again.
6. Drop expensive habits
This is similar to tip 5, you’re going to have to go without getting in that spa treatment for a while or it might be time to drop the gym contract and aim for some exercises you can do at home. Another tip is to meal prep more of your meals at home and try to cut back on restaurant meals. Check out some healthy meal ideas here.
These are always habits you can pick up again but until you’re debt-free, you can do without them (you’ll survive, we promise).
7. Save save save
Whenever you find some spare change, save it! Any extra money you have in a month, keep it to pay off your debt or keep it for a rainy day.
Once your debt is clear, you can use your savings to make up for any shortfall you might encounter in upcoming months to keep you out of falling into debt again!
Growing up means figuring things out and often by doing that, we land ourselves into a little bit of trouble. It’s normal though, we’ve all experienced some sort of debt at some point in time but that important thing is how you manage it. With these little tips and with a solid budget, you’ll be managing your money like a pro in no time!