Published on April 9th, 2020
If you’ve been struggling to pay off your debt, the key probably lies in your lifestyle.
Making a few small changes today can help you get out of trouble and stay there! But, if you’re already having a hard time, you might not know where to begin.
Sound familiar? Don’t worry; you aren’t alone. In fact, over 300 million Americans are currently in debt.
In this article, we’ll teach you how to stay out of debt for good by changing a few bad habits. Keep reading to learn how!
How To Stay Out Of Debt: 5 Top Tips
If you’re ready to get out of debt and stay there congratulations! Reading this article is an important first step.
In this section, we’ll explore the most important lifestyle changes you can make so ensure success.
1. Create A Budget
Write a monthly budget and stick to it. This should include housing, transportation, dining, leisure, and all your utilities.
Remember, writing a budget is only half the equation. You’ll need to keep a detailed record of your daily spending to stay on track.
Reduce your monthly expenditures by downsizing your biggest expenses.
This could mean moving to a smaller home, taking on a roommate, or opting to ride a bike and use public transportation.
Imagine how much extra room you could free up in your monthly budget by splitting rent and utilities or escaping from high monthly insurance payments.
3. Boost Your Income
While you’re trying to pay off debt, consider taking on a second source of income.
This is the best way to pay bills while tackling large monthly payments on credit cards or student loans.
Today, nearly 4 million Americans are working online, most as freelancers.
If you’ve got a talent for writing or teaching, you might be surprised by the number of online opportunities out there.
4. Ditch Current Debt
If you’re wondering whether you should pay debt or save, the answer is both. But, making larger monthly payments toward the principal of your loans or credit cards will make a major impact.
When it comes to what debts to pay off first, look at your interest rates to decide.
Cards and loans with a higher rate will cost you more to pay down if you let them accumulate interest.
Debt consolidation is another good option if you have multiple outstanding loans or credit cards. Wondering does consolidation affect your credit? In some cases it might, but only temporarily!
5. Live On Less
Getting rid of credit cards for good is essential to living debt-free. If you stick to your monthly budget, it’ll be easy to control your spending, and you won’t slip back into bad habits.
And, while you might not like giving up a few creature comforts, we promise it’s worth it! Imagine how good you’ll feel once you escape from the cycle of monthly payments and interest, and instead start growing your savings.
Get Started Today
Now that you’re armed with all the information on how to stay out of debt, the rest is up to you.
Start with small changes like setting a budget, and slowly work these other healthy habits into your financial routine.
After a few months, you’ll hardly notice the difference. But, you’ll be well on your way to a stress-free financial situation.
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