Living in debt can be really miserable at times. It can seem like no matter what you do to rid yourself of debt, you keep falling deeper and deeper into that hole. You may think there is no way to get out of debt. But, there is always light at the end of the tunnel. There is no need to live in fear of debt any longer because debt-free living is certainly attainable.
You might be asking yourself, “How on earth can I start on my debt-free journey?”
If you are willing to do what it takes to pay down your debt, you can be well on your way to a debt-free life. Yes, it can be easier said than done, but it is definitely doable with help. Here are 6 tips you can utilize to start living debt-free.
Debt-Free Living: How To Get Out of Debt Using These 6 Tips
This post is written by our talented staff writer, LaTia Longuemire.
There is nothing better than not having to feel like you’re drowning in a sea of your own debt. Take a look at these tips to help you figure out how to get out debt (and hopefully, stay out!).
1) Write Down All of Your Debts
In order to start paying down your debt, you first need to acknowledge the debts you have.
It helps to see the debt written down in front of you so you know what you have to start dealing with. You can go the traditional route and keep track of your debts with a pen and paper. If that’s your desired method of choice, that’s awesome…but if you’re more tech-savvy, there are apps that can help you keep track of your debts such as:
- Debt Free – Pay Off Your Debt (iOS)
- Debts Monitor (iOS)
- Debt Book (Android)
- My Debts (Android)
Some apps are completely free and others may cost a monthly fee. You can manage your debts and make sure your bills are being paid on time. Since there are quite a few apps to choose from, make sure to choose the one that works best for your situation.
2) Choose A Debt Payoff Strategy
The last thing you want to do is know what type of debt you have but then have no way to get out of it. What is the point in knowing your debt if you have no idea how to handle it? When you don’t know how to handle your debt, it can only grow out of control making things even harder on you.
So since you know what your debt looks like, where do you go from there? Once you get a handle on how much debt you are dealing with, find a debt payoff strategy that works for you.
There are many ways to pay off debt but the two main strategies are:
- the debt avalanche, and the
- debt snowball
The debt avalanche is a method used if you are more concerned with paying off the highest interest first.
The debt snowball method is used when you want to pay off the balance of all your debts from the smallest to the largest.
Although they can both be very effective, the debt snowball method is probably considered the easiest method of the strategies. The biggest difference in these strategies is the order of repayment. With the avalanche method, you can pay the most costly loans first.
Debt consolidation is also an option, though it’s typically best to just put your head down, get to work, and chunk out the debt as quickly as possible. It is best to choose a strategy that can best fit your financial situation.
3) Generate More Income In Order to Live Debt-Free
In order to make sure you are able to truly live debt-free, increasing your income is a must.
This will help you ensure that all debts are paid because you will have an excess disposable income to work with to pay them. It will also ease any financial stress that you may feel from being in debt. There are tons of ways to generate more income, which is where side hustles come into play.
Some side hustles you can get involved in today include:
- Becoming a tutor
- Starting a blog
- Selling your skills
- Babysitting and/or dog-sitting
This is just to name a few because the list is quite long. You don’t have to quit your day job to do something a little extra. In most cases, you may not even have to leave your home. All it takes is a little research to find the side hustle that can get you on your way to debt-free living.
Create a budget that helps you and your lifestyle in order to save and spend the money you need to. Think of all the necessities and budget for those first. Anything that is not a necessity, cut down on it.
After creating a healthy budget and cutting down on your expenses, you’ll likely be surprised how much money you have left to pay down those debts. And, you’ll be that much closer to living a more debt-free life.
5) Frugal Living Is Like Debt-Free Living
Frugal living can also be a great way to budget. It may not always seem like the most appealing thing to do if you’re more of a flashy person. But, if you’re trying to save money, frugal living is the way to go.
You may be thinking that frugality is the same as being a cheapskate. That is actually far from the truth. You can live frugal without sacrificing some wants you may already enjoy in life.
Through frugal living, you can find all kinds of deals to help you save money on the things you already do.
There are many different things you can do to live a more frugal lifestyle such as:
- Cut down on your grocery shopping bill
- Receive cashback savings on things you normally purchase
- Start couponing
- Downsize your home
Surprisingly, these things can contribute to a richer and more frugal lifestyle. It’s always something to consider if you really do want to start budgeting and paying down debts.
6) Surround Yourself With Like-Minded People
The most important thing you can do when you are on a journey to debt-free living is building relationships with people who are trying to achieve the same thing.
If you are trying to save money, you don’t want to surround yourself with a circle of spenders. It can hurt your cause more than help. Remember, teamwork can make the dream work. If you surround yourself with like-minded people, they will help make sure you stay focused on your objective.
Debt Free Living: It’s Time For You To Be Debt-Free!
You can apply these tips at any stage of your life. If you are serious about getting out of debt, there should be no more excuses for why you are not able to live debt-free. Finding your way to debt-free living can be rough, but it’s definitely rewarding!! Once you start paying down your debt and actually start to see a comma in your bank account, it will all be worth it.
After taking note of these tips, are you ready to start your debt-free living?
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.