Getting into debt can be a terrifyingly simple endeavor, but getting out is a much more difficult prospect. Here are a few ideas to help move towards financial freedom.
Whether you choose to consolidate your debt or simply tackle each one individually, it is important to make a budget and stick to it. One method is to pay off the lowest value debt first (while paying the minimum on everything else), then start putting that exact payment towards the second lowest debt. Another method is to pay off the highest interest rate debt first, and then continue making that payment on the second highest.
Cease Extra Spending
You may have made decisions in the past that are negatively affecting your life now as you try to get on top of your spending. You may need help doing a timeshare cancellation, or you may need to return your latest phone and downgrade to a less fancy device. You can also cut other expenses – borrowing from a library instead of paying for a video streaming service, listening to uploaded videos instead of paying for an audio streaming service, or making coffee at home instead of going to a café.
Bringing in Extra Income
Finally, despite your budget and cutting, you may need to bring in more income. This may be a seasonal job in a retail store, occasional shifts at a restaurant, or finding online work you can do in your free time. Finding ways to add to your wages may both help pay down your debt quicker and prevent you from spending needless cash out of boredom.
It takes a lot of work to get out of debt, but with careful planning it is possible. Make a repayment plan, cut extra expenses, and find ways to add to your income and you can be on your way.