So you’ve found yourself in the infamous hole of debt and it seems almost impossible to pull yourself out of it. But fear not! Here are 5 ways to start the arduous journey of being clear of debt.
1. Stop Borrowing Money
When you stop borrowing money you’re no longer putting yourself in the position of owning anyone. Also, you’re forcing yourself to live on a budget and prioritize bills.
2. Establish an Emergency Fund
Try saving $100 a month for emergencies. That’s about the equivalent of not going out for lunch for a week or making your morning coffee at home for a month. Put a little in every pay check and set goals to increase it so that if sh*t ever hits the fan, you have the means to survive.
3. Create a Realistic Budget and Stick to it
Write down and prioritize all your expenses. Once you build a budget you can start planning a personalized method to pay off your debts.
4. Organize Your Debts
Write down all your debts and prioritize them. Start knocking one out top to bottom.
5. Throw Any Excess Cash at Your Debt
Loose change? Save it to pay off debts. Tax refund? Use it to pay off debts. A small amount goes a long way and the quicker you pay off your debts the less stress you’ll be under. It’s a deep hole but little by little you can pull yourself out of it.
So now that you’re starting to pull yourself out of debt, here are some really easy saving tips.