HOW TO STAY OUT OF DEBT

Tired of being in debt?

We all would love it if our debts would just vanish into thin air. How lovely would that be!

Imagine waking up being debt-free. Debt-free living is definitely achievable my friend. You can do it and you’re going live it.

So many people today have mastered the art of getting out of debt, staying out of debt, and living financially free. In a post I made ‘How to achieve financial freedom’, Dave Ramsey’s Baby Steps helped me to realize that getting out of debt is more than possible!

His strategy is so ideal and makes so much sense. I love his money tips he has on how to become achieve financial freedom.

GETTING OUT OF DEBT

Debts can be so overwhelming. In fact, you can try to count sheeps all night, you’ll still lose your night’s sleep worrying about this monster. Getting out of debt is now the ultimate decision, one that requires urgency and consistency. So here’s how to start getting out of debt:

1. Budget and spend wisely.

Firstly, if you’re serious about getting out of debt, you should make it a priority to budget and spend wisely. Macy’s or your favorite store might be having a sale, but stick to the script and remember your debt goal. Keep a tab on your spending with a well-organized/designed Budget Planner.

2. Stick to your goal and be serious about it.
Secondly, remind yourself each day that you’re indeed coming out of debt. The best way to get out of debt is through consistency, so be consistent in your words and actions.

Is the credit score not good enough?

3. Take it in bite sizes.
Don’t be bombarded and overwhelmed in paying off your debt. Take it in strides because you have to make your payments/installments the way you can.

Dave Ramsey mentioned how to pay off your debt using a snowball effect which I find quite helpful. Here’s the article I wrote on it.

If you hurry to pay off your debt that stresses you out and causes depression, that won’t be good for you. Take it in bite sizes, set up an installment plan, and pay those small, manageable amounts until it’s clear.

BECOME DEBT-FREE

I want you to know that these tips are also for people who want to know how to pay off debt on a low income. Your timeframe might have to be extended a little further, but it is still possible and you can do it!

Additionally, I know some people are wondering how to get out of debt when they are broke. You may be stuck in a position where you’ve lost your job, probably backed up with other expenses or whatever the case is. The fact is life happened. You could try these solutions below:

• Start a side hustle or make money online even as a beginner

• Talk to the company/lender about the situation (sometimes they have unique personalized ways to help)

• Start a Go Fund Me account

• Ask for help from family/friends

So, now that you’ve learned how to get rid of debt, it only makes sense to know how to stay out of debt, right?

I always wondered why people fix a problem and immediately get back into the same negative situation. Don’t get me wrong, life can take a turn at any time, but I mean, some just carelessly allowed it to happen.

Don’t. Let. That. Be. You.

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Related Content: Bad money habits to avoid now

DEBT FREE LIVING

1. Pay your bills on time.
   Late fees can increase so quickly and send you in through the door of arrears. Importantly, let’s keep track of our bills and make payment on time.
   
2. Create an emergency fund.
   I cannot emphasize how important an emergency fund is. I can tell you that it’s a game changer and I wish I had one sooner! Always remember you can start small, doesn’t have to be a lump sum. It’s continuously stashing something away that does the trick. You can even get free money to start.
   
3. Say no to additional credit cards.
   Listen, though credit cards can be helpful, they are the biggest problems for some people. The less you have, the less you’ll spend. However, each person is different. You might have the ability to control impulse spending while another person don’t. Know yourself and be true to yourself. Remember the aim is to become debt free.
   
   
4. Stick to a budget. I overheard an owner of an established business enterprise telling someone to ‘budget everything’. Hence, i thought to myself, if he can live by that rule, why not take the advice for myself? Budgets will help to keep your finances organized and is definitely a way you can use to stay out of debt.

Side note: If you are serious about your finances and paying off debt, this book is for you.

DEBT PAYOFF

5. Have an accountability partner.
An accountability partner is a person that holds you accountable. My husband is my accountability partner (vice versa).

You can choose anyone who takes growth seriously and wants to see you succeed. It could be a family member, your partner, or your best friend.

In fact, when someone holds you accountable for the things that you set out to do, they keep reminding you and that gets you back on track if you were to fall out of line with your goals.

6. Learn passive income to make money now

Multiple streams of income are always a good idea. Finding new ways to make money puts you in a better position in managing your finances, helping you to stay out of debt.

7. Prioritize and stay focused.
Lastly, know what your priorities are. You wanted to learn how to stay out of debt, so stay focused on that.

Start paying debt now and achieve financial freedom.

How about you start right now? Here’s a FREE printable ‘Get Out of Debt’ Planner I know you guys will love! It is organized with flexibility for each person.

Improve Your Credit

You’ll be able to set your own timeline and evaluate yourself quarterly. It’s totally FREE and will help you guys to start getting out of debt. Thanks for reading guys! 😊