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How To Start Eliminating Debt
Debt can be absolutely crippling. What’s worse is that debt has a tendency to sneak up on you, and with credit cards so easily accessible, it’s very easy to get yourself in a hole. Digging out of the hole isn’t nearly as easy though! These few tips and tricks are very helpful when you go to start eliminating your debt, and will lead you to financial freedom if you stick with them!
1. Pay down your small debt first.
While it might seem to make more sense to pay down the larger debt, that will ultimately take longer and that’s an extra payment for a longer amount of time. By paying down the small debt first, you’ll eliminate a monthly payment right off the bat which will make it easier to pay off the larger debt.
2. Stop using credit cards.
Credit cards are a form of debt and you want to eliminate debt, not add to it. Use only the money you have and live within your means. This is essential as you being to eliminate your debt. You’ll find that once you eliminate your debt, you will free up money from the payments you were making to use anyway.
3. Cash only!
Some find this extremely effective, and some are against it. Truth be told, it’s one of the easiest ways to live within your means and stay out of debt, and ultimately it helps you stay on track with paying down your debt. The idea is that when you get paid, you go withdraw everything in your bank and get it in cash. Spend only what you have! It’s a great way to see how much you have to spend visually, and you won’t lose track of your finances this way.
4. Ask for a lower interest rate.
Call your credit card and loan companies and ask for a lower interest rate, seriously. You never know if you don’t try and it’s absolutely worth a shot! Sometimes the companies are willing to work with you if you make larger payments. Some will even lower your grand total owed if you agree to pay a large lump sum (sometimes even 50%)! So definitely look into it. It certainly can’t hurt to try!
5. Consider extra avenues of income.
This one is something that is fairly simple to do. If you find a way to bring in a little bit of extra income, you can use all of those funds to pay off debt and not feel it as much in your bank account. It might be a little bit of extra work, but it’s definitely something you can work towards and achieve!
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So there you have it, some very basic guidelines for beginning to eliminate your debt. Follow these guidelines and you’ll see a huge improvement in your finances! Taking hold of your financial situation isn’t easy, but it’s most definitely worth it, especially if you can call yourself debt free!