Each month you pay your bills on time and always feel that you're not making any progress. Debt can be overwhelming and it can feel as though you're drowning in debt. Instead of simply paying your bills each month, you need a strategy. Not every strategy works for every situation, but you can find one that works for you. Let's look at some secrets to getting out of debt.
Make a Budget and Cut Expenses to the Bare Minimum
The first key to getting out of debt is to get on a written plan (that you follow!). Find any and every expense that you can cut and throw all that money towards your debt.
Try to reduce your grocery budget as small as possible by meal planning around sales and matching coupons to sales to get the best deals. If you have any expenses like cable or satellite that you can cut altogether, at least try it for a few months. Â Cut your cell phone bill to the smallest plan possible and shop around for the best deal if you're not in a contract. Â You also need to drastically cut your restaurant spending, since eating out can cost way more than a meal prepared at home.
Focus on One Account at a Time
Another amazing way to get out of debt once and for all is to focus on one account at a time. What this means is to pay the minimum on your other accounts, but put the rest of your money towards paying off one account. Some people focus on the smallest debt first, while others focus on the one with the highest interest rate. Either way, this will help you get out of debt a lot faster.
Ask for a Lower Interest Rate
Call your creditors and ask for a lower interest rate. You may need to keep pushing until you reach a manager, but if you've been making your payments on time, there's a good chance you'll get a lower rate. Remember, every little bit helps, but go for as much of a reduction as possible.
Eliminate Fees
If you have credit cards that charge fees, get rid of them. There is no reason to pay $100 or more each year just to have an account. You can call and ask for these fees to be removed after showing that you're responsible with your debt or you can transfer the balance to another card with no fees until you can pay the amount off.
Another expense you don't want to pay is late fees. If you're bad about paying your bills after the due date, you're paying $35 or more each month on each account. Set up a calendar and make sure to pay your bills on time. Even better, set up an automated payment.
You don't have to continue to drown in debt. Using these methods can help you get out of debt once and for all.
Julie- Logger's Wife
All great tips! Sticking to the budget seems to be the hardest. 😉 #ThriftyThursday