Today, I would have been in a much better place financially had I been smart enough to listen to my sister Laura years ago! I don’t know what I was thinking, but clearly, I wasn’t listening.
But I have a second chance and I’m very excited about it!!
Many of us have been led to believe that debt is OK, or that one can never get out of debt. But that’s far from the truth.
Having a plan and a little discipline can help you reduce or eliminate your long-term debt.
Here are five basic steps you can take to pay off your debt quickly:
- Find out where your money goes now. Track your spending for a few months or review your spending for the last few months to figure out where you spend money.
- Trim your expenses. See where you can cut back expenses, and redirect those dollars to paying extra on your debts each month.
- Look into increasing your income. Whether this means volunteering for overtime, taking a second job, turning a hobby into a small business or renting out an extra room, any increase in income can be used to pay down your debts.
- Decide on an amount you can commit to paying off your debts. Dave Ramsey’s Debt Snowball is a great way to do this. With the debt snowball method, you pay off debts in order of smallest to largest, gaining momentum as each balance is paid off. When the smallest debt is paid in full, you roll the money you were paying on that debt into the next smallest balance.
- Consolidate or refinance your debt at a lower rate. If possible, pay off high-interest credit with a new loan at a lower rate or transfer balances to credit cards with a lower rate. Use the difference between the old monthly payment and the new monthly payment to make a larger payment on the rest of your debts so you can pay them off more quickly.
Bottom line….
Debt doesn’t have to be a way of life.
But getting out of debt for good is about changing behaviors and building momentum.
Building a budget is also key to any financial plan, but especially so when you’re paying off debt.
The decision to get yourself out of debt is a life changer if you are willing to make the necessary commitment that goes with it.
Until next time…..
I look forward to hearing from you!!
Althea
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PS. Yes… I’m a nurse, but did you know that I have a side hustle? I’ve partnered with a leading financial service company and the number one thing they do is credit restoration. We’ve helped many people since I started on this journey and always looking to serve more. Check out these links…. Fix Your Credit and Earn Extra Income.
My goal is to connect people, ideas, and resources so that your life is better because I helped you make the right connection!!
