Do you feel overwhelmed by debt? Whether it’s credit card debt, overdue payments or student loans, high amounts of outstanding debt are difficult to pay off. But, that doesn’t mean that it’s impossible to improve your financial situation and become debt free. Here are ten tips for getting yourself out of debt and back on track financially.
- Avoid taking on more debt. Use cash or prepaid debit cards for as many of your purchases as possible, and don’t take out any new loans.
- Save your credit cards for emergency use only. Using them to get to the next paycheck only prolongs the debt problem.
- Put aside some extra money into savings when you can, to build up an emergency fund. Use this in the case of an emergency rather than going further into debt.
- Cut your costs wherever you can. Cook dinner at home rather than eating out at restaurants.
- Try walking or riding a bike rather than paying for gas.
- Set realistic expectations. Your debt isn’t all going to disappear overnight. Don’t be discouraged if your progress is slow.
- Stay positive. Having the right attitude can make all the difference when it comes to staying on top of your finances.
- Look toward the future. The best thing you can do to help you decide what debt to pay off first is to come up with a long-term plan.
- Keep track of your money. Track all of your income and expenses, either using a ledger or financial software like Quicken. You need a clear picture of where all of your money goes in order to pay off your debt efficiently.
- Cut down on any recurring monthly payments for things you don’t need. The money you’re spending on subscription boxes and streaming sites can be used to cut down on your debt instead.
As you can see, there are lots of things you can do to become debt free. It's simply a matter of being consistent and cutting back as much as you can. Chances are, the more you shave off your debt, the more enthused you'll be about getting rid of the rest of it.