Tuesday, March 11, 2014, PM | 2 Comments
It’s easy to get into debt, but it’s not usually so easy to get out of it. Becoming debt-free takes hard work, but it’s worth it as it can relieve a mountain of stress and pressure.
Paying back your student loans, medical bills, and credit cards might seem overwhelming, but by following these three simple guidelines, you can become debt-free.
Live Below Your Means
If you want to pay off some debt but are barely scraping by right now, you’ll need to make some changes. Because you normally get into debt by living above your means, it only makes sense that you should live below your means to get rid of debt.
This means cooking supper instead of eating out, finding joy in reading library books instead of watching cable and learning that singing along with your radio can be just as enjoyable as going to a concert.
Before you buy anything, ask yourself whether you’re buying it because you need it or because you want it.
Focus on One Thing at a Time
If you have more than one type of debt, focus on one thing at a time. Some people choose to pay off their smallest debt first, and others work on whatever has the highest interest payment.
Both of these strategies has their merits – smaller debts can be paid off faster and help with the motivation factor, but paying off things with higher interest rates will save you more money in the long run.
Whatever you decide to tackle first, make sure to put your heart into it. Use bonuses, overtime, tax refunds, and gift money to pay it off faster and free your self from interest rates.
Use Cash for Everything
Many people keep using credit cards while they’re trying to pay their debt down – they say that they want to keep racking up points or that it’s more convenient.
They might be right about that, but it’s been proven that people spend more when using plastic. Even when people use a debt card, they tend to pay more than they do when they use cash.
It might be a little inconvenient, but using cash can help you learn to spend less.
There isn’t an easy way to become debt-free, but as long as you live below your means, focus on one thing at a time and use simple tricks like using cash for everything, you can succeed in paying off all your debts.
If you are too far in over your head sometimes declaring bankruptcy is the only solution to get your creditors off your back.
If this is the case then contacting a professional, like those at Harris & Partners Inc., is the only option for debt help in Toronto. Paying off your debt will let you have more freedom and happiness in your life.Facebook.com/doable.finance