in today's video we're going to share the 10 easy steps on how to get out of debt slowly but surely number 10 stop borrowing money tempted to take out another loan hold on stop and think would this loan help me get out of debt or would it sink me further down below you must learn to stop borrowing money and that means no more loans it also means no more swiping of credit cards and no more new debt you need to reshape your behavior your views of money and your attitude towards debt if you do you
will see a significant change in your life or else not stopping borrowing money will just dig you a deeper hole that you might not be able to escape from all your life understand the true cost of borrowing money like using your credit card is it worth it think of the long term it might not be what to do start bringing Cash When shopping live on cash spend cash leave your credit card at home number nine monitor where your money is going coffee shops subscriptions bills straight down the drain you need to track your spending it
is one of the finance tips you might have heard a lot of times from speakers and read from books yes and it is a key secret of successful people they know where their money is going and if it's working for or against their good you know what I mean is your money working for you or it isn't to get out of debt this year you've got to know where you're spending your money if not you would have a hard time to make a budget that you want to stick with before you can create a budget
you must decide where to spend less to do that have a clear picture of your spending and how you are spending money get a small notebook to list down your expenses these include your mortgage bills food Transportation gas and education of your children but while tracking you must also include debt payments on the list besides a list you can use a budget Tracker app or a budget worksheet also you must keep your receipts for reference and list down your expenses each one no matter your method of tracking your spending you should remember to use it
to input and track your expenses this will help you learn about where you are spending your money tracking your money you'll also discover the areas where to cut your spending without affecting your life at the end of the day tracking your spending allows you to strike a balance between a budget to get out of debt and livability number eight create a budget plan and stick to it getting out of debt means living below your means don't Splurge with your credit card or take out a loan to buy a new phone instead be a wise spender
after tracking your weekly or monthly expenses create a realistic budget plan that you will follow create a budget put it in writing instead of just putting it in your mind what are your financial goals it will also help to put it in writing you have to write your goals but make sure that they are achievable and realistic okay so while getting out of debt is our topic you must not forget about building your emergency fund after all this is one of the best things you can do to avoid incurring more debts like in the event
of a medical emergency once you've paid your debt you can add more to your financial goals however be sure to write everything down to avoid forgetting not just your goals but also your budget number seven develop a payment strategy what is your payment strategy in order to get out of debt make a plan it should be a sound payment strategy to implement but then ensure that you create a strategy that will help you maximize your payoff schedule one of the most popular debt repayment strategies is called the debt snowball method this involves paying debt off
from the smallest to the largest it allows you to gain the momentum while knowing every remaining balance so it goes like this once you've paid the smallest debt you're going to roll that minimum payment you used to make on that debt into the next debt in line got it okay here list your debts but start from the smallest to the largest one make a minimum payment on the debts you've got however pay as much money as you can on the smallest debt in line repeat the same process until the debts are paid in full this
debt repayment method can help you get out of debt strategically alternatively you can choose to focus on the debt that has the highest interest rate at the end of the day the debt to focus on will depend on your current situation number six don't just pay the minimum balance pay more than its minimum this is one of the fastest ways to be debt free it means putting as much money as you can to pay off your debt it can bring you closer to the ultimate goal of your life to be debt free so if you
can add to the minimum monthly payment to pay your debt faster always make it a habit no matter what skip saving for that new Air Jordan shoes and prioritize paying off your debt you'll thank yourself for it later number five renegotiate any credit card debt try to renegotiate any contracts with credit card companies discuss about paying a lump sum amount to them instead of monthly payments this strategy is called a debt settlement call and request for a lower credit card rate they might be able to Grant this request if you have a good payment history
if they don't want to negotiate for a new interest rate they might Grant a request that some fees and recurring charges will be waived don't be afraid to call them this might be one of your shots to be debt free you might be surprised by the results don't hesitate to call them do it number four consider changing utility service providers there are some bills that could be lowered and help you save money to pay off debt some of them include phone bills cable bills electricity and insurance shop around and do your homework check out for
lower rates from competitors and don't be afraid to switch to a provider that can offer the same quality but lower Service rates you might be able to find lower rates from competitors and save up to pay off your debt number three create a family budget talk about your debt with your family and how you're going with it if they don't know it yet if they don't know what's going on then it might be time to tell them about it discuss how you are planning to pay off those debts fast ask them for suggestions about repayment
strategy reason is you need to discuss your real situation with them in this case they'll be able to participate in creating budgeting and tracking the budget this will also help get everyone on the same page especially if you're the only one making money in your household it will help to let them know so that they won't be spending money without regard to your budget involve your kids in the discussion and let them hear out budgeting and saving strategies these things will improve their personal finance skills early on and make them financially literate number two adjust
when needed you must create and stick with your budget however you must also be flexible enough to adjust it when needed for example adjust your budget to support you in a given situation like an emergency or a sudden change being flexible you can keep track of your finances when things go wrong to make it easier again write your budget down for easy tracking it is also a prep work that will make it easier to make adjustments as the situation calls for it for example you might want to start from scratch and create a new budget
if needed in short you can change your plan as your life needs it to survive this time you will be able to create a better budget that will suit your current needs you might also need to adjust to a temporary budget it can happen like when there are sudden events that might take a huge chunk of your income in this case you should adjust your current budget and be extra strict for a month or two this can help you you catch up and prevent incurring more debt in the process but then you should not be
too flexible and allow huge purchases always remember your goal is to be debt free don't be tempted to buy unplanned purchases just because of the wiggle room in your changed budget in short you should make sacrifices and commit not to buy the things that you want instead focus on your needs and that one huge goal of getting out of debt number one decide to be debt free visualize your new life debt free imagine how happy you and your loved ones would be visualize how liberating it is to live and breathe without being haunted by debt
that one moment that moment begins once you've set and conditioned your mind for it
