7 Brilliant Steps To Get Out Of Debt Faster
Debt repayment is not easy.
Whether you owe debt from credit cards, lines of credit, school loans, or all of the above, it weighs on you.
Here are 7 steps i’m currently using to help us get out of debt faster.
- Refinance loans
- Cut expenses/re-organize
- Increased income
- Selling things don’t need/use
- Sleep on new purchases
- Optimize bills
- Track progress
Refinance Loans
Take a look at your loans and credit cards. What’s the interest rate? Could you call your credit card company and ask for a lower rate? See what they can do for you. What about moving your debt to a new credit card or line of credit with a lower rate? If you choose this option close your old cards and make sure you don’t use them to rack up new debt.
2. Cut Expenses/Re-organize
I’m not asking you to cut the Starbucks and cut back entirely, but you need to look at where your money is going. Ask yourself questions. Have you been eating out a lot? Spending more on clothing? No longer going to the gym but paying for the membership? Print out your monthly spending for the last few months and see where your money is going and where you can cut back and cancel.
Increase Income
Can you work overtime at work? Can you add an extra day? I work about 4-5 days as a Dental Hygienist and had some flexibility with my office to pick up extra shifts or add hours. Another tip is to Ask for a raise! Don’t be afraid or undervalue the skills that you do for your employer. Finally, Look for a new job. In my industry, if you stay in the same office for a long time you are usually underpaid. I did all the tips here to speed up our debt repayment.
Selling Things
Take a look around your home. Do you see some things that you could sell that your no longer using. My husband always says to me. If you haven’t used it in a year it’s time to say goodbye. Easier said sometimes but really look around. I sell my gently used clothing, kids clothing, kitchen items and holiday decor that we don’t have a use for anymore.
Sleep on New Purchases
Big or small take a day and sleep on it. Do you need this item that you want? Do the math and crunch the numbers. Talk to your other half or someone you trust. There is no rush.
Optimize Bills
Automate your bills! Set up automatic bill payments to a credit card or your debit account so you don’t forget a get hit with late payments. Before heading to the grocery store for the week. Take stock of what’s in your fridge. Create a list and a meal plan for the week.
Track Progress
Track your progress. It’s very motivating to see how far you have come and remind you how far you have come. I use a debt spreadsheet that I update biweekly or monthly.
Remember to CELEBRATE how far you have come! I’ve been seriously making changes over the last year. Not all at once. I started small by increasing my income, using that extra income to pay down credit card debt before moving to refinancing and consolidating our debt for a better interest rate. It seems like it’s taking a long time, but it’s all about small changes, and remembering to keep going. Consistency is key.
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