Tips for Reducing Debt that Actually Work
- Written by Business Daily Media
Getting out of debt is one of the best gifts you can give yourself to make your life more content. Without debt, you don’t have your creditors hanging over your head and you don’t feel like you always have to work to keep your head above water. But getting out of debt is not as easy as we all wish it could be. Here are a few tips for reducing your debt that actually work from the debt experts at York Credit Services.
Create a Budget
You probably rolled your eyes at this suggestion, but it’s one of the best ways to start digging yourself out of debt. You start by tracking every single penny you spend so that you know exactly where your money is going. That will probably be a real eye opener because when we spend without tracking, it’s easy to spend more than you think you’re spending. You might be surprised to learn just how much money is going out the door that doesn’t have to be.
After you track your money, you set your budget for all your required bills, such as your rent or mortgage, utilities, groceries, childcare, and loan and credit card payments, among others. What you have left over you can budget for your non-essentials, such as streaming services, cable, Internet (this might be an essential for many people), entertainment, and anything else that you don’t have to spend money on.
Then, stick to your budget by continuing to track your spending against what you have budgeted. You will soon see that you are saving money that can go toward your bills to lower your debt.
Get a Side Job
The fastest way to get rid of debt is to make extra money that you can put toward it. No one wants to work more, but if you’re in a position where your debt is all-consuming, adding more money to your income is almost necessary, especially if you want to maintain your current standard of living. You simply have to have more money coming in than going out and if you’re upside down in this equation, the best way to get right side up is to get a side job.
Technology has made it much easier to get a side job than it used to be. You don’t have to go to a physical company to get paid. You can become a ride-share or delivery driver just by signing up on an app. You can find jobs online that can be completed with a computer. Sometimes, you might even be able to use your cell phone to make money as with completing surveys and playing games that pay.
Make Extra Payments
Once you have extra money from either cutting your expenses or getting a side job, the quickest way to pay down your debt is to make extra payments on it. We often get caught up in making minimum payments, but there’s no reason why you can’t pay more. This reduces the amount of interest you’ll pay over time and get the debt paid off sooner.
Conclusion
You don’t have to stay in debt, but you do have to have a plan on how to get out of debt before you’ll be successful. Just making minimum payments and hoping it will go away isn’t a strategy. The tips given here can get you on your way.
