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Smart Savings: 3 Ways to Eliminate Debt

  • January 7, 2020

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Smart Savings: 3 Ways to Eliminate Debt

Debt can be crippling. A person who’s in deep debt may have a difficult time finding a job, purchasing a home, or simply getting ahead in life. Luckily, there are solutions for people who are stuck in this situation—you don’t have to stay buried forever. Follow these three ways to eliminate debt so that you can start fresh this new decade. There’s a light at the end of the tunnel.

Cut Your Spending

The first thing you can do to get rid of debt this year is to cut down on your spending. Sit down and make a list of your monthly expenses. Take a hard look at the list and determine what you can afford to lose. Start by eliminating small things such as streaming services and monthly subscription boxes.

More: How to Manage Personal Finances When You're in Debt

Then, evaluate the big picture. What takes up a significant portion of your monthly expenses? Can you perhaps trade in your car for a cheaper model, or are you spending money on a vacation rental that’s going to waste? Some of the top reasons to get rid of a timeshare include the massive interest rates and continued maintenance fees. If you cut any and all unnecessary expenses, your debt will begin to shrink almost immediately.

Related Content: View website for debt consolidation help.

Increase Your Payments

Another thing you can do to reduce the size of your debt is to increase your payments on your bills every month. The more cash you put toward paying off your debt, the faster it’ll shrink. This obviously means you’ll need to make some lifestyle changes. The cash you were spending on other things will now go towards what you owe. It’ll be hard to dedicate more money to your bills, but it’ll be worth it when you’re debt-free sooner than you ever thought possible.

Stop Using Credit Cards

One simple way to eliminate debt is to stop using credit cards. Credit cards are great if you can pay off the balance quickly. If you’re unable to pay things off in a timely manner, however, your debt piles up, and interest rates become involved. Moreover, your interest rates can increase the longer you hold off on paying your balance. Make things a little less stressful on yourself by using cash or debit as much as possible. Focus on paying down your debts so that you can make strides towards what you owe. The more you use your credit card, the more you’ll owe down the line.

Everyone should try to be as stress-free as possible this decade. One way to achieve this goal is to eliminate your debts. Be smart with your spending, and increase your monthly bill payments. Though you may have to make a few lifestyle changes now, it’ll be worth it in the long run.