Although debt is a part of many of our lives, that doesn’t mean we have to let it define our lives and stress about paying it off! These are 5 simple and attainable steps to take to slash away at your current debt.
- Create a budget! It will be extremely difficult to pay off any debts and bills you may have if you do not accurately know how much income you are making and the cost of all of your expenses. It is also good to see how much you are spending, and what you are spending it on.
- Pay more than the minimum balance! If you can afford to pay more than the minimum balance on your credit card statements or any other forms of debt each month, you should. You will pay off this debt quicker and spend less by beating monthly interest payments!
- Delete credit card information from online stores. If you’re like me, you spend some of your free time browsing through amazon for random things or window shopping online. However, having credit card information stored into these sites makes it that much easier for us to spend. Nine times out of ten, if you have to get up off of the couch or out of bed to input your credit card information into the site, the purchase is not worth it. Yes these purchases may often be small, but they add up quickly and accumulate interest.
- Stop using your credit card to make purchases! Using your credit card freely is just going to increase your debt, and no one really wants that. Go on an all-cash diet to feel your money leaving your hands. You will most likely spend less because you have a visual representation of how much money you have and how much you spend instead of simply swiping and waiting for a bill at the end of your statement period.
- Use nonrecurring income to pay off extra debt! Whenever we get a random or expected, but not routine, inflow of cash, we tend to want to spend it on something that will instantly gratify us. Instead, use this money to pay off an extra portion of your debt.
~Sarah Proto, VP of Unbanking