As of April 2017, the average American had more than $30,000 in debt, not including a mortgage for those who have one.
That kind of financial burden can be debilitating for a person. You may reach a point where you feel like no matter how financially responsible you are, you’ll never truly get ahead enough to clear debt from your life.
That doesn’t have to be the case. There are ways for you to maximize your hard work and income so that you’re contributing as much as possible to your debt.
Getting rid of debt can improve your personal happiness and give you back the lifestyle you’ve always wanted. Read on for five tips on how you can start clearing your debt today.
1. Create a Budget and Stick to It
Living life on a budget may not sound like the most fun, but if you want to be a serious and clear debt from your life, a budget can make a big difference.
To start, consider the things you need to spend money on versus the things you want to spend money on. For example, you need to pay your rent and mortgage, as well as groceries. Social activities, however, are extras and may not fit into your plan to get debt free.
Write your budget down it in a place where you can see it every day as motivation.
2. Have a Support System
Some people see debt as something to be ashamed of and try to keep it to themselves. In reality, telling people about your debt can help you clear it off.
Let your friends and family know your goal and encourage them to hold you accountable. Having cheerleaders will make the process less lonely. Your friends can even help you find social situations where you can all hang out without spending a lot of money.
3. Don’t Let Bad Credit Drag You Down
When you already have debt, getting a loan can be difficult, especially if you’ve ever missed a payment and have bad credit as a result.
A service like Wire Lend provides loans without a necessary credit check, so you could qualify even if you are paying off other debt.
Having a service that you know you can turn to for a loan in a tricky spot can make it easier for you to keep up with your debt payment and help you turn your credit around.
4. Explore Extra Income
Making extra money can help you pay down your debt even faster, or can give you some wiggle room in your budget.
Depending on your skills and availability, look into freelance work, a weekend job or picking up extra shifts at your current place of employment.
Working harder now could get you debt free faster, and enable you to get the most out of your future.
5. Set Targets
Setting mini goals as you’re paying off debts can help you stay motivated. When you see that your budget is actually working, you’ll be more likely to stick to it.
Pick one loan — such as your car loan or a student loan — and target that. Paying off one loan at a time will give you a sense of accomplishment as each new one gets cleared.
Ready to Clear Debt from Your Life?
Paying off debt can be a slow process, and often a frustrating one. But a debt-free future is an important goal to work toward, and following these steps can help you get there.
For more information on ways to improve your lifestyle, please check out our blog.