Debt crumbles us, negates our self-esteem, and gives us a reason to stay melancholy. However, getting out of debt is not a struggle anymore. You can save money and live debt-free by considering the strategies mentioned below.
They are bulletproof and effective strategies for paying off debt, but self-discipline is the key.
Let’s keep the ball rolling!
How to Live Debt Free
1. Make a Budget
It might seem obvious to create a budget and put adhesive to loopholes, but it goes beyond that. Like
- It keeps your regular expenses in control.
- It gives you spending a direction.
- Adhering to a strict budget chops off unnecessary expenses and mentally prepares you for how much you will spend.
For this, you can take the help of a debt-free calculator. It will make your life more accountable.
Related – 6 Practical Budgeting Tips to Save More Money
2. Automate your Payments
Automate the savings; if you want to save money and pay off debt. These tools and techniques can be tuned into autopilot mode to get the most from it.
- For example, you can peruse automated transfers to stay debt-free and cash-free. These automated transfers will sweep off your worries and keep your finances on track.
- The forgetful human nature can be the biggest drawback in debt repayments; hence the best idea is to set reminders and tick the due dates on the calendar if you are making payments from multiple credit cards.
- If any of these suggestions do not work, you can use debt management apps budgeting apps, or other in-built tools to monitor your debt repayment strategy.
3. Prepare the List of Your Debt
Set your priorities straight by creating a list of debts.
The details you can enter are debt name/account name, type of debt, interest rate, payment terms, monthly payment figure, and minimum monthly payment you need to credit.
4. Find Out How Much You Can Spare Every Month
The spiraling debt can become overwhelming and swallow your happiness if you don’t stack it with the right strategies, and one of them is to find out how much you can spare every month to clear off the debt.
These questions will let you look into it more clearly.
- How much money is squeezed from your accounts to pay utilities, insurance, and food?
- How much money can you pay each month without disturbing your financial health?
- Any extra income- that can bridge the gap between expenses and income.
Related – How Much Money Should You Save Each Month? 7 Savings Tips
5. Methods to Repay the Debt
Debt Repayment methods can be tailor-made to suit your circumstances. In general, there are three ways to get it cleared.
What’s the best way to pay off debt?
You can choose a debt repayment plan tailored to your unique circumstances— what’s best for you. In general, three strategies can help you pay down or pay off your debt more efficiently.
- Snowball Method-The method emphasizes paying the smallest debt as fast as possible. And then move off to another obligation. It is a quick payoff method that reduces your overall debt, improves rankings, and is a great confidence booster.
- Debt Avalanche: Going above the traditional debt repayment method, another alternative can cast your debt worries. Debt Avalanche method- As per this method, the repayer should pay the highest debt first or the debt with the highest interest rate and then move forward to another debt until all of them are repaid.
- Debt Consolidation: Debt Consolidation rolls out your different debts and consolidates them into a single debt with varied features like monthly repayment, lower interest rate, shortening of time, etc., but beware, it comes with staple risks.
6. Talk to Financial Professionals
If you are unsure what strategy can give you maximum returns or elevate you towards debt repayment success, consult financial professionals.
These professionals have years of experience and will let you steer clear of the maze and achieve the goal.
7. Find a System that Speaks for You
With diverse debt repayment methods and strategies, one might be tempted to follow others’ methods to drive success.
But everyone’s situations are unique and might hit your neurons if you try to fit into other people’s shoes.
But the good news is that you don’t have to follow the herd mentality; find the one that gives you an entryway to debt wipe-off.
8. Technology Can Do It For You
Whether it is about paying off debts, trimming the budget, and keeping track of expenses, technology has lined up different budget apps to keep you secured and get finances onboard.
9. Reduce your Utility Bills
These bills eschew most of our wealth stealthily.
Hence, feel free to use LED lights, switch off the fans, or do anything under the sun that contributes to your energy conservation bill.
Related – How to Save Money On Cable? 7 Useful Hacks
10. Negotiate
Taking a stand for yourself at this moment boosts your financial journey. Start negotiating if things are awry and you feel like standing near death’s door.
Initially, you may feel hesitant, but it might fetch you a better deal on gym membership, cable services, etc., and remove the burden.
11. Make More Money
Adding more money to the wallet can spruce up your debt repayment plan. You can consider getting a part-time job being a freelancer or getting paid to type captions or get paid to create SEO backlinks, or any side hustle or even dog walking can fuel your efforts.
Do ask for a salary spike at your current job.
What if everything else fails?
Small steps contribute to financial success, but if these financial tangles make you neuro-diverse, opt for a debt relief route or file bankruptcy.
Takeaway: Live Debt Free
Are you still scratching your head to find the best debt repayment plan?
Don’t get overwhelmed or anxious and let the debt sit on your nerves; ponder the strategies that work, create goals, tread a path towards it, keep checking your credit score, find out the interest rate, and celebrate the moments when you pay off the debt, and keep looking forward.
Piling up debts might also give you a lesson for a lifetime; so be prepared and walk through these ideas, and if you have any; mention them in the comment section below on how to live debt-free; we are all our ears.
