Paying it off is a phrase tossed about like leaves in the wind but it’s not that simple.
We all have debt that we need to pay off but how to start is the first step on the path to being debt-free. No one lives in a bubble where they can spend all their money to pay off bills. We still need to have a place to live, pay other bills, eat, and be clothed is the bare minimum to survive.
I have four steps that will work for you to pay off your debt.
First, of all, you need a budgeting tool. When I say a budget tool I mean that you need to figure out how much money you make per pay period. Then list out all your bills and other costs. When first starting out you can use a pad of paper to write it out or create a spreadsheet. Click here for the budget tool <here>
The second step is to look at expenses and look at what can be done to economize. I recommend calling your cell phone company, streaming services, and utility companies to ask if they have any discounts or ways to pay less per month.
The third is the hard part that’s when you give up unnecessary expenses. That can mean cutting the streaming service, not eating out, making more food at home, grocery shopping from a list, going to discount stores, using coupons, and utilizing the library for entertainment.
Fourth now look at your budget again and see how much extra you have per month. If after making substantial changes it’s still not enough to be able to pay off the debt you should look at consolidation as another way to get out of debt. Click <here> for debt consolidation options.
Paying off debt isn’t easy and will take time but don’t get discouraged. I recommend focusing on the smallest debt to the largest so that you get the satisfaction of marking one ‘paid off’ quickly. Depending on your availability I recommend picking up a PT or gig job. Think about the skills and talent that can generate money. It can be pet sitting (if you like dogs/cats/birds/reptiles), babysitting, drawing, writing, or editing. You can use any number of gig sites or just tell friends you need to make extra money and use the old-fashioned ‘word of mouth’.
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