Are you dealing with large amounts of debt and wondering how to get out of debt quickly? Getting out from under the weight of debt can feel like an impossible, completely overwhelming task. However, there is hope! With some creativity and hard work, you can get out of debt. Here are seven things you can implement today that will help with debt problems.
1. Curb the Credit
Before you can learn how to get out of debt, you have to stop creating more debt. This requires you to stop using your credit cards. One way to give yourself the freedom to cut up the credit cards is to save an emergency fund of $1,000. This gives you a cushion for life’s little unexpected expenses. Then, cut up the cards and start living on cash alone.
2. Find Creative Ways to Save
Whether you start coupling, skip eating out, cut cable or lower your grocery budget, one key to being able to put money towards your debt is finding ways to save in your monthly budget. If you can save $100-$200 a month and then put that money toward your debt, you will see it start going down quickly.
3. Create a Plan
You need a plan if you are going to get out of debt. Otherwise, money that would have been used toward debt pay down will quickly work its way back into your regular budget. Set up a budget, and make debt repayment a priority. When expenses come up, use your savings, then replenish the savings, but stop putting things onto credit cards.
4. Sell Items You Don’t Need
Have a garage sale or sell items you no longer need on Facebook or Craigslist, then use that money to help with debt. You’ll love having less clutter around the house, and you will also love making a dent in that debt.
5. Practice the Debt Snowball
A debt snowball is a process wherein you choose your smallest debt and pour as much of your money as possible into paying it off. When you succeed, you put the money you had been using to pay off that debt toward your next smaller debt. Your debt payment continues to grow each month as you build a “snowball” towards your biggest debt.
6. Find a Side Job
Find a side business you can do easily from home. Whether you sell something, create a job as a photographer, start dog walking or pet sitting or even deliver pizzas, find something you can do on the side and put that money towards your debt.
7. Learn to Say “No”
You don’t have to see the latest movie in the movie theater, you can wait until it is $2 at Redbox. You don’t have to take a vacation. You don’t have to have the latest new car when your old one dies. By learning to say “no,” you will free yourself from continuing to add debt to your problem. Soon, you will find that there are alternatives that are just as enjoyable to the costly things you are used to doing, and with far fewer financial repercussions.
Getting out of debt is not easy. It takes work. But it is work that is worth tackling. By putting in the effort, you will be able to rejoice at being debt free, and it will probably take less time than you think! Use these tips and tricks to get yourself closer to the debt-free life you crave. Please contact our Oaktree Law attorneys if you need help becoming debt-free!