3 Tactics to Get Out of Debt Quickly – I Used It You Too Can
We’re not in debt, we just don’t have it yet, said no one ever! The more you struggle with personal debt, the more important it becomes to get out of debt quickly and efficiently. However, getting out of debt can be incredibly difficult if you don’t know where to start or what steps to take. This guide on how to get out of debt gives you concrete strategies you can use to finally eliminate your personal debts once and for all!
1) Track your spending
Tracking your spending will show you exactly where your money is going. If you’re spending $100 a month on clothes, that’s $1,200 per year. Add to that another $1,000 in credit card debt, plus $10,000 in student loans… It adds up quickly! Use an app like Mint or Quicken to track your spending as soon as you get paid each month. That way you can make adjustments before it becomes too much of a burden on your wallet. If you have friends who are also trying to pay off their student loans, try setting goals together and offering each other accountability. Even if it’s just paying one friend back every time they pay back their loan, having someone to lean on when times get tough makes all the difference. Plus, once you’ve been out of school for two years, you can qualify for income-based repayment plans that could save you thousands of dollars over time. Talk to your lender about what options might be available to you.
2) Set a budget
If you’re carrying credit card debt, it’s time to get a grip on your finances. Write down every expense and begin creating a monthly budget. Consider cutting back on expenses like entertainment, eating out, or travel so that you can save more money each month for paying off your debts. Although it may be difficult at first, take comfort in knowing that many others have been in your shoes—and it worked for them! Check out these inspiring stories about people who paid off their debt.
The trick is to stay committed to your goals: Even if it takes longer than expected, don’t give up. It will feel good when you look back and see how far you’ve come with making progress toward getting out of debt. If possible, try setting aside small amounts (e.g., $50 per paycheck) for paying down debts instead of using debit cards for everyday purchases until you are able to start making bigger payments. This way, you can take control of your finances and begin working toward a brighter financial future.
The best way to avoid falling into a cycle of credit card debt is by learning from others who have been there before—and by never spending more money than you have in your bank account! When in doubt about whether or not an expense is worth it, ask yourself these questions: Is it something I really need? Do I have enough money in my account?
3) Save up emergency funds
Anyone who is saddled with debt should have a good amount saved up in an emergency fund. If you’re struggling with student loans or credit card debt, it’s imperative that you save up enough money so that if anything happens—you get fired from your job, someone in your family gets sick, or some other unexpected expense arises—you can handle it without falling further into debt. Experts say saving up at least three months of living expenses is crucial; ideally you should try to save even more. But how do you go about doing that? Start by cutting out all unnecessary spending and putting whatever extra cash you have toward building up your savings account. (And don’t forget to stash away some cash for retirement!) Once you’ve got a healthy emergency fund built up, start tackling your debts one by one. Pay off high-interest cards first, then move on to lower-interest ones. Once you’ve paid off everything but student loans, set aside as much as possible each month toward paying those down too.