Mountains of debt can be paralyzing and overwhelming. It can influence many aspects of your life and make homeownership or the ability to make payments on your house extremely difficult. The best thing to do is to buckle down and tackle your debt. Take the time to sit down and make a plan. Here is a list of 4 tips to get out of debt quickly.
1. Create a Budget and Stick to It
There are many suggestions for budgeting out there. A simple one is to first figure out your monthly income. After you have this number, take 50% of it and utilize that money for essentials like minimum monthly payments, transportation, groceries, insurance, and childcare. After this, take 30% of your monthly income to use for things like dining out, travel, and entertainment. The last 20% should go toward repaying debt and creating more savings. Start out with repaying your smallest debt, and work your way up.
2. Shop Smart and Live Frugally
There are many ways to cut your monthly spending. By saving money wherever you can, you can get yourself out of debt more quickly. Keep in mind that these changes don’t have to last forever. Utilize them for as long as you need to get out of debt. Here are a few ideas.
- Use coupons for products you already buy.
- Shop at consignment stores instead of fancy department stores.
- Ditch cable. Get an antenna to watch network television, and utilize free sources for digital entertainment.
- Stop eating out, and brew your own coffee at home.
- Utilize the library for free books, movies, and music.
- Cut out expensive hobbies.
- Cancel your gym membership, and exercise outdoors or with free videos online.
- Look for free entertainment such as going for walks, hikes, or attending free events or concerts.
- Cancel recurring subscriptions. Live without them for a while. Be sure to check your credit card statement for subscriptions that you forgot you even had.
3. Look for Ways to Make Extra Money
The internet makes it easier than ever to find extra ways to make money. Here are a few ideas to fill your account with extra money to throw at debt each month.
- Start a side gig such as walking dogs, selling homemade crafts, or freelance writing.
- Get a part-time job such as delivering take-out, cleaning houses, or working retail on the weekends.
- Sell your car and utilize public transportation. Not only will you get cash from your car sale, but you’ll also save on insurance, maintenance, and gasoline.
- Sell your unwanted items on Nextdoor, Craigslist, or Facebook Marketplace. Make a little cash, and feel good about reducing clutter.
4. Brainstorm More Creative Ideas
No one knows you and your personal situation better than you. Think about your lifestyle and your budget goals. What else can you do to save money and pay off debt faster? Here are a few more ideas.
- Use the envelope system. Instead of relying on freely spending with a credit card, put your budgeted amounts in cash in envelopes each month. Paying in cash helps you to feel more connected to your money and holds you accountable.
- Learn to say no when friends or family ask you to do something that would cost you money. Offer alternative activities, such as holding a potluck dinner instead of dining out or going for a hike instead of going to the movies.
- Sell your house and move in with your family until your debt has been repaid.
You are not stuck under a pile of debt. Use any of the ideas above to start getting your financial situation back on track. You’ll be there in no time.We offer one last suggestion. You can sell your house and get out from under that debt. If you are interested in selling your house quickly and simply, contact us at We Buy Houses Tulsa. We have a passion for helping people in our community, and we would love to give you a no-obligation cash offer for purchasing your home. Fill out our online form or give us a call at 918-739-6777.