Between student loans and a couple maxed out credit cards, you’re suddenly drowning in debt.
How did you get here? How do you get out?
It’s easy for people to look at the debt they’ve accumulated and feel defeated.
They think there’s no way out, and they just accept a life full of bad credit and high-interest rates—but you don’t have to live like this.
Here are a few ideas to get you started on your debt free journey.
1. Set A Budget
If you don’t take control of your money, someone else will. The easiest way to keep track of your paycheck is to tell it exactly where to go.
That’s where a budget comes in—it forces you to evaluate how you’re actually spending your money, not just how you think you’re spending your money.
A budget doesn’t limit you financially. Instead, a budget will help you see what areas you’re overspending on.
For many people, creating a budget helps them find extra money they didn’t even realize they had. Any extra money you find can be put towards paying off debt.
2. Cut Your Living Expenses
Many people think that getting a second job is the only way to increase their income and get out of debt.
However, you can get a raise without adding a single extra hour of work to your life by cutting your living expenses.
When you create and stick to a written budget, you will see what areas you’re spending too much on.
By choosing to spend less on going to the movies, going out to eat, or shopping, you are clearing up more money that can go directly towards paying off your loans or credit cards.
If you’re serious about paying off your debt, try cutting some of your large bills.
This could mean temporarily moving in with family or getting rid of luxuries that aren’t absolute necessities (such as cable).
Cooking dinner at home instead of eating out is another way to save money.
Look for ways you can tighten your budget and focus on putting as much money as possible towards your debt.
3. Consolidate Loans
It can be hard to keep track of multiple debts, such as credit cards, payday loans, and student loans, especially when they all have different interest rates and monthly payments.
If this is the case, loan consolidation could be a great way to take control of your finances. A loan consolidation lowers your overall interest rate and combines all your debts into one monthly payment.
Loan consolidation lets you stay in control of your finances and your debt.
No matter how much you make, getting out of debt is possible.
Stay focused on your goal of being debt free and do everything you can to put money towards your debt. It’s time to get out of debt once and for all!
This article was written by Alyssa Gisseman who is a student at Brigham Young University. Alyssa is studying English language and editing.
She currently does copy writing and editing at Wallaroo Media.
She loves researching and sharing what she learns with others, especially when it is a topic as important as this one.
Here are some of her popular articles
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