You’re focused on getting out of debt. You have a plan in place and you’re ready to pay off your debt as fast as possible. As you’re creating a budget to get out of debt, though, keep these 5 things at the top of your of mind. These 5 items should always get paid first, before any extra money goes towards paying off your debts. These are your budget essentials. Any money left over after these are paid can go directly towards getting rid of your loans!
Before anything else, you need to keep your house over your head. Not paying your rent or mortgage could result in an eviction or foreclosure. So, make sure your rent/mortgage is your first priority every month. No matter how much debt you’re in or how quickly you want to get out of debt, always pay your rent/mortgage on time!
Food is a necessity. Make sure you’re allotting enough money for groceries every month. However, try to steer clear of restaurants and fast food. After all, you can easily spend 2 or 3 times as much by going to a restaurant than cooking at home.
You must pay your electric, gas, and water bills every month. Keep your water running and your lights and heating/air conditioning on. Maintaining a livable home for your family is more important than paying off debt.
Your health should always be a top priority. Make sure you’re budgeting money every month to maintain your health. This includes insurance, regular doctors visits and dental cleanings, and any expenses to cover any illnesses or regular medications.
If public transportation is available to you, this category may not be a necessity. However, if you need your car to get to and from work, this item should also be a priority on your budget each month, before debt. You need transportation to get to and from work, and in order to get out of debt, you need to keep your job. So, keeping up with your car payment and car insurance should be a priority.
If you’re working towards getting out of payday loan debt, we can help! We work with you one-on-one to get payday lenders out of your bank account, consolidate your loans, and get you out of debt fast. Contact us today!