How to reduce debt with these simple lifestyle changes
October 10, 2019
4 Common Mistakes to Avoid When Paying Off Debt – What to Know
October 22, 2019
Being in debt can cause many challenges in life. Some people no longer know how to get themselves out, nor do they believe it is still possible. But yes, it’s possible to get back on your feet and on the right financial track. It’s easier if you can follow strictly the golden advice you will read here and commit to it until the end.
Paying off your debts is a complicated process, but just like anything else in this world, it has a beginning and an ending. What you need to look forward to is not only the day that you will finally be debt-free. You also need to anticipate the person that you will become as you follow the tips here. When you do, you’ll never live a life in debt again—not even for a single cent.
Here are the seven golden advice that indebted people followed to be out of debt:
1. Don’t skip saving.
Just because you can barely afford to pay your debts doesn’t mean you shouldn’t be keeping any money as part of your savings. This is the most nonsensical habit you shouldn’t do.
Saving cash will save you from unexpected expenses in the future, such as car repair, medical emergencies, and unemployment. That’s because you can’t afford to pay these things off with the income you’re using to pay what you owe.
In the end, the habit of saving and multiplying money will pave your way to financial freedom.
2. Consider a second and third job.
If your debt is off the roof, it’s high time to consider getting part-time jobs. You really need to afford to pay your debts regardless of how long it will take. Some people have dug their way out of debt by looking for more ways to earn money. The common denominator in their stories is that they are willing to put up the hard work. Sell your old stuff, walk your neighbour’s dogs, start a freelancing career online—whatever helps you take home the bread will work.
3. Stop your excessive spending.
If you have the tendency to spend more than you can afford, you should stop the habit of excessive spending now. It doesn’t matter if it’s for an object you don’t need to use or for food you don’t need to eat—do not respond to your impulsiveness.
Sometimes, being in debt causes stress, and you might think you need something to get you off that stress. Nothing gets you off debt better than paying attention to where every single cent of your money goes.
4. Stop using your credit cards.
If your will is stronger, get a pair of scissors and cut your credit cards now. Pay with cash. Repeat. This is one golden tip that your bank will never tell you. How else can banks earn money except for the interests they charge you when you use credits? This is one way to cut your debts and put you back right where you started.
Paying with cash also makes it easier for you to stick to your budget plan and monitor your expenses. You don’t need a bank to do that for you, and right now, you can’t afford your bank, so stay away from it.
5. Don’t ignore your credit card bills.
They don’t go away. It’s a perfect time, and the only time you need to be in contact with your bank. Not only is ignoring your credit card bills an immature move, but it will also start a new financial storm that you can’t afford to face right now. If you have set up auto-pay, it will be wise to open your credit card statements so that you can keep track of whether your payments impact your balance at all.
6. If you can’t afford it, don’t buy it.
We live in a society where there are massive promotions and a general love for excessiveness. You see it on TV, you hear it on the radio, and you definitely read it on social media. You invest so much on the surface without giving too much thought on the fundamentals. But we can’t make society change its system, can we? You need to focus on your problems and look for ways to amend them.
Again, no matter how hard your mind is telling you to own it, don’t. Don’t buy it, especially if you can’t afford it.
7. Start the bare-bones budget method.
The bare-bones budget means spending only the minimum that you need to survive. Millions swear by this technique. It narrows your focus on the essential and forces you to cut down on the unimportant. This method will get you off your debt in no time. It will also help you save tons of money. Most importantly, this will transform your mindset and your disposition about money and spending.
Conclusion
Once you’re in debt, there’s no other way out but forward. You can’t escape liability by paying it off with another debt. You can’t also pay it in the same manner that you acquired it. If you follow the advice we have above, you will not only be able to pay off your debt and get off debt. You will also become a much wiser person—one who can exercise control when it comes to spending.
If you’re looking for a way of out of debt, DebtHelpers.ca provides personal debt relief solutions – get in touch today to see how we can help.