How do I get myself out of debt?
A lot of people ask, “How can I get myself out of debt?” Don’t worry, it’s possible! Depending on how much debt you have, becoming debt-free can be achieved through just a few steps. If you’re serious about getting out of debt, know that it can take years of hard work and focus to achieve your goals, but it is possible! You can do it and this is the first step:
Step 1: Be honest with yourself
This step is probably the most painful, yet crucial, step to becoming debt-free. Sit down and list all of your debts, their balances, and interest rates on one page. Write down every single penny you owe. Make sure to include the interest rate for each balance as well and the minimum payment with their due dates for each account.
By being honest with yourself about your money situation, you are taking the first step to a debt-free journey. Make sure to keep the list somewhere where you can access it throughout the process. Stop asking yourself “How can I get myself out of debt?” and start changing your life today.
Step 2: Budget, budget, budget
A budget is a goal accomplishing machine! You need one if you want to become debt free. Start by listing your monthly expenses, such as rent, utilities, and grocery money. Once you’ve listed your common expenses, look for ways you can reduce your spending so you can put more of your paycheck towards paying off debt. This might mean quitting a morning coffee habit or packing a lunch for work each day. Do whatever you have to do to get rid of debt! Creating a budget doesn’t have to be hard or complicated. There are dozens of different tools and outlines available to use; just find whatever system works best for you.
Step 3: Create an emergency fund
People typically go into debt for two reasons: they buy things they can’t afford, or get hit with an unexpected expense, such as a medical bill or a car payment. With a little self-control, you never have to be the person who buys things they can’t afford. You might be wondering though, “how can I get out of debt if I’m constantly getting into more debt due to unexpected expenses?” With an emergency fund! If you are prepared for and have the money to immediately pay for unexpected expenses, the next time you are hit with a surprise bill, you won’t have to go into debt to pay it off.
Step 4: Pay current bills
Once you have your finances in order and a firm budget set, it’s time to get caught up on your bills. All of them. Staying up-to-date on minimum payments is important to maintain a good credit score, which can affect future purchases, such as buying a home or financing a car. Before you start working on reducing your debt, you need to be up-to-date on all of your current bills.
Step 5: Hammer away at debt
The end goal of this process is to become debt-free, and don’t worry, it will happen! However, depending on how much debt there is and how much income can be put towards that debt, it may take years to pay everything off.
That can be discouraging, which is why it is important to break down debt into smaller, more manageable goals. It is much easier to work towards paying off $2,500 nine times than paying off $22,500 all at once! Setting smaller goals keeps you motivated and helps track progress. When you reach a goal, don’t be afraid to celebrate! You are working hard to take control of your finances and celebrating wins will helps us stay focused on the overarching goal to become debt-free.
Step 8 (optional): Increase income
Sometimes people think, “How can I get myself out of debt when my paycheck barely covers my bills?” Other people are focused on their goals and get mad when their debt isn’t shrinking fast enough. Either way, a second job is a great way to supplement your income and increase debt payments to help pay them off sooner.
A second job doesn’t mean have to mean working nights and weekends! If you have marketable skills, look for freelancing opportunities you can take advantage of during free time. A second source of income is a great way to pay off debt faster, as long as you use it to pay off your debt and not to finance an old lifestyle.
Step 9: Become debt-free
You did it! You stuck with a budget and goals and knocked out debt. Take some time to celebrate that hard work and enjoy the feeling of being debt-free (a feeling you will hopefully have for the rest of your life). Many people never get to this step, but you did it! Recognize the sacrifice and hard work it took to achieve this goal.
Step 10: Focus on the future
You might be saying, “I’m debt free. Now what?” You have the rest of your life ahead of you, but remember that falling into old spending habits can quickly get you back into debt all over again. So what do you do instead? Many people feel uncertain and confused on what to do when they don’t have to devote most of their paycheck to chipping away at their debt. A few good first debt-free steps are saving for retirement and investing extra income.
How do I get out of payday loan debt?
Sometimes the process of eliminating payday loans is different than getting out of regular debt. With high interest rates and aggressive payday loan lenders, payday loans can make it hard to make progress on financial goals. With the right help and a plan in place, you can eliminate this debt too. We change “How can I get out of payday loan debt?” into “Watch how quickly I can get out of this payday loan debt!”
It can be extremely frustrating when you’re doing everything you can to eliminate your payday loan and aren’t making any progress. That is why we are here to help; at Real PDL Help, we support our clients who are struggling with their payday loans. A reputable payday consolidation company can give you the support you need. How can you get out of debt if aggressive lenders won’t let you get your finances in order?
Our payday loan consolidation programs are designed with you in mind. We want to help reduce your stress about financial situations and stop the endless debts currently burdening you. No one deserves to be trapped by payday loans. We are here to offer you one-on-one assistance with payday loan debt.
Where do I get assistance with payday loan debt?
Sometimes you need help from an expert but aren’t sure who to trust. We can help! We will help you get aggressive payday lenders out of your bank account, manage your loans, and help you take control of your finances by getting out of payday loan debt for good. We are here to support you on your debt-free journey. Contact us today to see how we can help you start your debt-free journey!