How to Get Out of Your Debt Quickly

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Absolutely! You Can Get Out Of Debt

       Not all of us make six figures which means paying off debt can be tough. But it’s not impossible.
Paying off debt can be frustrating and confusing if you don’t have the right plan.
How to Pay Off Debt with Debt Snowball Method
List your debts from smallest to largest, regardless of interest rate.
Attack the smallest debt with a vengeance, while making minimum payments on the rest of your debts. Repeat this method as you plow your way through debt.

Next step takes a several months to finish for some people and a years for others. So if you’re on this step and focused on paying off that last debt, it’s possible the grind is starting to become a grind. Maybe you’re exhausted, and feel like it’s going to take forever to become debt-free.
Hold that thought, this article will give you ideas on how to get out of debt fast.

How to Get Out of Your Debt With smart shopping and Frugal Living.
Start couponing.
You’ve probably heard this a lots, but are you doing it? You can save a lot of money just by showing a coupon to the cashier. Just be sure you’re using coupons for products you already buy, otherwise you could end up overspending on items you’ll never use.

Cutting Costs: The Small Stuff
This is only for those people in debt. If you’re just looking for more money to invest or save, I don’t like to advise people to watch every pennies and never buy little things like donuts and softdrink on the way to work. But if you are in debt, emergency.
So you’re going to have to watch those little purchases that add up. Go through the expenses in Mint. It’s this little stuff that can add up and that can be eliminated when you have a debt to pay off.

Organize Your Debt
If you want to pay off your debt quickly, then this next step is crucial. There are a few different ways you can manage your debt for a quick payoff plan.
My wife and I used the Debt Snowball method where we listed all of our debt on one piece of paper from smallest to largest. Then we started paying minimum payments on everything except the smallest debt.

If you were to use this method of debt organization, you’d take the surplus money you have after paying all your bills and throw that at your smallest debt. For instance, if you have a $100 surplus and the minimum payment on the first debt is $25, now you will pay $125 per month until that debt is gone.

There are other methods of organizing your debt for payoff as well. You can pay it off in order of highest interest rate to lowest interest rate. Or, you can pay it off in order of smallest monthly payment to largest monthly payment.
Everyone has a different opinion about which method of debt organization works best. Some choose the debt avalanche plan. This is the plan where you pay off the highest interest loans and cards first.

Try consignment shopping.
Children grow out of clothes at the speed of light. It’s not worth it to go into debt for your 2 year old’s wardrobe. Check out consignment stores that sell pre-loved outfits in good condition. If you’d rather shop online, no problem.

Cut the cable.
On this millennium, you can watch most of your favorite shows online. If you haven’t bitten the bullet yet, do it! Put that 100 bucks cable bill toward your debt each month and watch how quickly your debt snowball starts rolling.

Interest Rates
If you have student loans, you may be able to get a lower interest rate by refinancing. Earnest is a platform that uses technology to bring low-interest loans to high-potential people. They look at things like your investments, savings patterns, and career trajectory to give you the lower rate you deserve.

If most or all of your debt is credit card debt, you know how hard it can be to ever make any progress when the interest rates are so high. Getting that interest rate down will save you money and enable you to get out of debt more quickly. There are some ways for getting your credit card interest rates lowered.

The best way is a balance transfer credit card. You open a new credit card that has a period of 0% interest; some offer that rate for as long as 24 months. You transfer the balance from your current high-interest cards onto the new card. You have that period to pay only the balance on the card with no interest charges.
You must pay off the entire balance before the 0% APR period ends though. If you don’t, the remainder will be subject to the new interest rate which could be higher than the price you were paying on the previous card.
Not everyone will be approved for a balance transfer card but if you are, indeed buckle down and get that balance paid off.

People lend you a lump sum that you can use to pay off your credit cards. A loan like this does have an interest rate (that’s how the lenders make a profit), but it will be far less than the interest rate on your credit card.
If you’re not eligible for any of the above, call up your credit card companies and ask for a reduced interest rate. Be honest, tell them you’re struggling with the payments, but you have a plan to pay off your debts but could use some help in the way of a lower interest rate. Not all of them will agree, but you might get lucky, so it doesn’t hurt to ask.

Stop going out to eat.
We get it. Going to a restaurant or hitting up the drive-thru is so much easier than cooking at home. But while you’re enjoying the freedom of not having to cook, your purse is in a pinch. For a creative way to socialize and share a meal, have friends over for taco night instead of meeting up at a restaurant.

Plan your grocery trips.
Make a list and stick to it. Do impulse items always end up in your cart? Try ordering your groceries online and then picking them up curbside at the store. Don’t ever shop on an empty stomach.

Break up with your barista.
If you don’t know where all your money is going each month, we’re pretty sure your favorite coffee shop can locate it for you. Brewing your own coffee at home is a simple way to save money fast.

Avoid expensive hobbies.
Do you really have $500 a month to spend on golf? But it’s not just the golfers out there who need to re-think their club dues. Do you spend a ton at craft stores but never get around to starting your project? Home improvement stores can also cost you several Dollars in one visit.

Cut up your credit cards.
You’ll never get out of debt until you stop making debt a way of life.

Use the envelope system.
When you pay with cash, you actually feel your money leaving your hands. Ouch! Nobody likes that. People tend to spend less when paying in cold, hard cash. With the envelope system, you’ll see that cash going down so you can keep track of how much you’re spending.

Find free entertainment.
Put a spending freeze on your entertainment costs for a little while. This means no going out to the movies, concerts, mini-golf, bowling or whatever you do for fun that costs money. Instead, challenge yourself to find free ways to stay entertained. Take the kids to the park, go for a walk or a hike, enjoy a free concert, or look for a free event in your community.

Stop investing.
Stop contributing to your 401(k). Right now, you want all your income to go toward getting out of debt. Once you’re debt-free and have saved three to 6 months of expenses in an emergency fund, then you can resume your contributions.

Make a budget
Budgeting should be easy and fun! Focus your money on what matters: day-to-day spending, those pesky debts and wealth-building.

Tell the kids you’re on a budget.
When it comes to money, the children can be a worse guide than your stomach. Be open with them about what you do and don’t have room for in the budget. And remember: Never be afraid to use that magic word, “no.”

Budget and Grow Up
Is what’s coming in more than what is going out? How much is left over at the end of each month? You’ll have at least that amount to start paying off debt. We want to make that number higher and we will, but it’s good to see we at least have some extra money after expenses.
What if there is more going out than coming in? We’re going to fix that. That can happen when you start relying on credit cards and is probably at least part of the reason you’re in debt.
Now we have all of the numbers we need to get started. We know how much we owe, what our expenses are, and what we have coming in. Now we need to keep track of your budget.

For the time being, the only budget in the minimum payments on your debts, the amount you’ve already been paying. If you haven’t been paying even the minimums, budget those amounts in now.
Also budget in some money for non-essentials like going out to dinner or a movie, a few drinks at happy hour.
Your debt is an emergency, and if you were a robot, you would throw every dollar that wasn’t meant as an essential expense at it. Most humans can’t deprive themselves entirely for long stretches without going off the rails.

Getting out of debt is like losing weight.
If you never allow any wiggle room for yourself, you can’t stick to the program. So let some money in your budget for non-essentials.
We’re going to start finding extra money and making more money to get rid of that debt as fast as we can.

Debt can be like this large dark cloud looming over your head. At least that is how we felt when we were in debt.
It felt like we were just getting by. It was hard to see the light at the end of the tunnel. The large payments we made each month barely make a dent in our consumer debt. We were feeling very overwhelmed.
We decided that we needed to get a handle on our finances and develop a plan to eliminate our debt.

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