Regardless of the size of your debt or how you accumulated it, it has to go. If you’ve never been debt free before, you can’t imagine the emotional feeling of freedom you will experience! If you chose that reason alone to motivate you to get out of debt, it would be worth it. At any rate, I believe this post will be both inspirational and practical.
How can you begin to tackle that $5,000 medical bill and stay on top of your already tight budget? Or will you ever be able to afford making extra payments on your $50K student loan debt? It’s all possible, my friend! And here are some great tips to start tackling that debt today!
- Get serious. As Dave Ramsey would say, “Get gazelle-intense!” Half heartedness will not help you get out of debt any faster. If you are determined, the battle is yours!
- Control yourself. Yes, you need to control your spending, but usually it comes down to controlling yourself. If you don’t have it, don’t spend it. Plain and simple.
- Devise a plan. Planning and thinking are some of the hardest tasks there are, which is probably why so few engage in them. Create a working budget and figure out how you can live under your means while you pay off this debt.
- Save $1,000 for emergencies…before you start trying to pay off your debts! It might sound crazy, but you NEED this $1K for inevitable emergencies. You should NOT go in to more debt trying to pay off your new set of tires, your new engine, or whatever it is that breaks while you’re knocking out your debt. And saving $1,000 feels pretty good, too! Just don’t touch it for anything other than emergencies.
- Throw every spare penny at your debt – every chance you get! This is probably where I get a little too crazy. I can bundle up with 5 layers of clothing to avoid running the heat, and I can wear my shoes to a pulp, and the list goes on. But when you’re trying to live a debt-free life, you will absolutely have to make some changes to your spending (if you didn’t have to make changes, you would probably already be out of debt, right?).
- Start with your smallest debt and only work on paying off that one debt. Dave Ramsey explains it so much better than I, hence why I included tip #7. You will gain so much momentum from paying off one single debt at a time and then working on each debt – one at a time, from smallest to largest – until they are all gone.
- Read Dave Ramsey’s book, Total Money Makeover. I can’t say enough about this book. I know it has helped so many people get out of debt, including me and my husband. While some of the topics are long-term, it will help you get a great perspective on what financial stages you should be working on and in what order.
“The borrower is servant to the lender,” according to the Bible. Not only do I want to be a good steward of what God has given, but I don’t want to spend my life trying to pay people back, constantly trying to catch up.
Again, no matter your amount of debt, start today with baby steps like these so that you can be on your way to financial freedom!