The amount of debt that the US has is over 16 trillion dollars. That amount is ridiculously high. As I previously posted I have some debt that I am working on paying off. In the last few months, I’ve gone into overdrive with my debt elimination. I’ve focused more on my eBay store and started working a full-time job again. I’ve also been making money with Uber Eats. I’ve been able to pay more than $1000 for the last few months. I expect that to increase.
I’m thankful that I finally have a grip on my debt. Unfortunately, not everyone does. There are a lot of people that are struggling at the moment. You may be unemployed or working a job that’s underpaying. In today’s post, I want to share with you six things that can help you with your debt elimination journey. You can get a grip on it.
Create a budget
Creating a budget is very important. A budget is a spending plan that shows you where your money goes. If something is not in your budget, don’t buy it. It might be hard to get used to a budget at the beginning, but if you are focused, it will work. There are multiple apps out there that can help you with your budget. If you’re old school like me, you can use an excel sheet for your budget. Whatever you do, make sure that you start your budget today. Below are some tools that you can check out if you are starting your budget for the first time.
I’ve been using Mint for years. It’s an app where you can list all of your financial info in there. You can include bills, loans, checking and savings accounts, and more. Before you ask, it’s safe to use. For more info about Mint, go here.
Personal Capital has a lot of cool budgeting features. It’s also good because you can track your spending with it. Click this link to learn more about Personal Capital today.
Below are two books that will also help you with your debt elimination.
Pay bills on time
Paying your bills on time helps to keep you out of debt and it also helps your credit score. At one point I used to pay several bills late each month. I was young and dumb. Most of those bills were collecting interest and late fees. My finances were not a pretty sight. I took the time to go through each bill and I wrote all the due dates in my planner. Then I contacted the creditors that I was behind on and started paying them. It took me a few months, but I was able to get current on all of them. If you’re in a similar situation, I want you to know that you can get on track too.
That was key to me getting on track with my debt elimination journey. I wish I would have done this sooner. It may take a while, but you can do this.
Don’t spend money you don’t have
Sometimes people buy stuff even if they don’t have the money for it. Whether it’s using a credit card too much or allowing your checking account to become negative, don’t spend money you don’t have. I have made mistakes in the past by overspending. Having to pay your bank or credit union an overdraft fee is not fun. I’m not 100% against using credit cards. I just think that people should use them in moderation. People get in a lot of debt and they truly don’t need to be in it.
When I was younger, I swiped my credit card a few times when I should not have. I always wanted to make sure that people had a good time, so I’d buy shots and drinks even when I didn’t have the money to do so. The good thing is that I learned my lesson before it was too late.
Forget about keeping up with the Joneses
This next debt elimination tip is tied into number three. I’m sure you have heard the phrase “Keeping up with the Joneses”. It means that you are trying to match someone’s social status. Don’t do it. The Joneses are usually broke. You don’t have to be like them. Don’t spend money that you don’t have. Nothing positive will come out of it. The people that you are spending to impress don’t give a damn about you anyway.
The older that you get, the less that you will care about what people think and say. At the end of the day, your happiness is all that happens. Who cares what you’re wearing or driving as long as you’re good. When you ignore the Joneses, your finances will be much better.
Avoid credit cards or loans that have high interest
When applying for a credit card or loan, you should make sure you choose the one with the lowest interest rate. If you can’t pay your credit card off each month, having a low-interest card is the best option. I hate paying interest, but I’d rather pay it on a credit card that has an interest rate of 12% instead of one with 22%. The interest will add up quickly.
If you do have a balance on your credit card, make sure that you pay more than the minimum each month. It will help you get that balance down much quicker. That will lower the amount of interest that you have to pay as well.
You may not be able to get out of debt by yourself. National Debt Relief may be able to help you. They are one of the largest debt relief settlement companies in the country. National Debt Relief has an A+ rating with the BBB. They may be able to help you with your debt elimination if you are truly struggling.
You’ve just read 6 things to help you with your debt elimination. Paying attention to your money is crucial if you want to get a handle on your finances. Don’t get caught up trying to be like someone else. Debt is a huge problem for millions of people in this country right now. If you can, try not to be like everyone else, strive to be debt-free. I am looking forward to the day when I can say that.