6 Amazing Debt Payoff Tips That Can Be Life Changing
Want to know the best debt payoff tips, so you can make your debt disappear for good? Lucky for you, here are exactly 6 (seriously useful) debt payoff tips that you need to know about today.
These debt payoff tips <not to be dramatic> can be a total game changer for your finances.
Deciding to payoff all your debt is the first crucial step into getting your finances in order. I’m so excited for you that you’ve decided to kiss goodbye to your debt. And finally feel free!
If you are anything like me, you are probably doing all the research you can about budgeting and savings. So, you can stay motivated during this long debt-free journey.
I know it can be hard to payoff debt, especially with a low income. But, it’s totally possible!
As someone who’s currently clawing my way out of debt, I’m giving you the top debt payoff tips (that I swear by).
As a result, you are going to learn all about debt payoff tips you’ll wish you’d known sooner.
After learning about these creative ways to payoff debt faster, you’re going to be a pro and be ready to make your debt disappear.
This post is all about the best debt payoff tips.
Best Debt Payoff Tips:
(Creative Ways to Payoff Debt)
1.Get Organized
You won’t be able to pay off debt if you’re not organized. There’s a big correlation between having an organized house and having your finances organized.
In other words, if your house is a mess, more than likely, your finances will be a hot mess too.
Therefore, get organized!!!!!!
Make a list of all your debts. List all your credit cards, student loans, car loans, etc. List the debts from smallest to largest.
Decide the order you want to pay them off. Pay off one debt at a time, while making minimum payments to the other debts. And then repeat.
Staying organized and knowing which debt you are attacking first, will help you send any extra payments towards that debt, while still making minimum payments on your other debts.
After you pay off your first debt, you can use that freed up money to attack the next debt.
These debt payoff tips are super important and will give you the momentum you need to keep going.
Remember, it can be hard to face at all your debts. But, you won’t be able to pay off your debt if you don’t put any effort into it.
2. Make a Budget
Create your first budget, so you can easily look at what bills are due and if you have enough funds to pay them.
Start with listing your income. Then, identify your expenses (bills, student loans, savings, eating out, etc.). Lastly, you subtract your expenses from your income. This number should equal zero. (Because every dollar will be accounted for).
So, make a zero-based budget this week. (Here’s exactly how to do a zero-based budget this week).
And, please, create a realistic budget. Don’t make your budget so restrictive that you don’t want to ever think of budgeting again.
Creating a budget doesn’t have to be difficult at all. If it’s too overwhelming to do a budget for the whole month, budget only for this week. Here’s a Step-By-Step Guide on How to Create a Budget.
{CHECK OUT: Why Is My Budget Not Working?}
3. Learn to Say No
If you are a people-pleaser, just like me, you might dread these debt payoff tips! However, you can learn to say no to your friends and family temporarily until you payoff your debt.
It doesn’t have to be that difficult. You can still be polite.
For example, you can tell your friends and family:
- “I love that idea, can we do that next month?”
- “I can’t go out to dinner with you guys, but I would love to have you over instead.”
- “Can we do that on a budget?”
I’m sure you can come up with more creative ideas on how to say no to your family and friends (without them getting offended.)
4. Create A Money Routine
You have to check in with your budget often to make sure you are on track with your finances. At a minimum, you should be checking your account balance every day. This should only take a few minutes of your time.
Also, you want to choose a day during the week, where you can sit down and create your budget for that week. Look at what bills need to get paid and go ahead and pay them.
This is the time where you can find any extra money and send directly to your #1 debt (the one you’re tackling first).
5. Plan ahead for big expenses
Instead of relying on the credit card for big expenses such as a family vacation, set aside a small amount each month for that big expense. Once that big expense comes up, you have the money saved up for it. And, I bet you can enjoy the vacation a lot better, (not worrying about how to pay that credit card bill when you get back).
Basically, plan out what big expenses might come up this year, while you are paying debt off. That way you are always prepared and you’re not taken by surprised.
You can even start funding your next vacation, just setting aside $25 from every paycheck. As the months go by, you’ll be amazed at how much that money grew.
{CHECK OUT: Sinking Funds That Will Make You More In Control Of Your Money}
6.Don’t Procrastinate
This is one of my biggest debt payoff tips! I know you’ve had debt for a while now, you might think it’s normal. But, you have to switch your mindset.
You have to prioritize getting out of debt. You won’t be able to pay off your debt if you don’t put any effort into it. Don’t procrastinate creating your first budget, learning all about what a zero-based budget is, and setting up your money routine.
What Debt You Should Pay Off First?
You need to first list your debts from smallest to largest. Also, list their interest rate, (the APR.)
Dave Ramsey always suggests for you to pay off the smallest debt first, that way you can have a quick win. And get the momentum and courage to face all your other debts.
But, in reality, it’s up to you to decide which debt you should pay off first. If you know you will save a lot of money by tackling the debt that has the highest interest rate, then pay that one first.
There’s really not a wrong way to pay your debt. You can do a combination of a snowball and an avalanche method.
{CHECK OUT: How To Use The Debt Snowball And Debt Avalanche Method To Destroy Your Debt}
How Can I Pay Off Debt Quickly?
As soon as you get organized with your money, you can pay your debt off quickly. You need to get on a written budget. And list all your debts. After that, decide which debt you want to tackle first and start chopping it away.
Then, pick up side hustles, extra hours at work, anything you can to bring in more income, so you can throw it a debt. Focus on consistently making extra payments towards your #1 debt.
This post was all about Debt Payoff Tips
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A Step-By-Step Guide on How to Set Up A Budget
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