Debt is never fun and you could feel stressed if you paid it all off on time. But when you’ve paid everything off, you have a feeling of peace and the freedom to add more for the future.
Thanks to the power of the internet and with a few simple steps, you can do it sooner rather than later. And as with all things in life, money and business, you will only get what you actually put into it.
Here are some of the best ways to start reducing your debt while better managing your finances and potentially making some extra cash in the process.
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With the snowball method
First, you should make a list of all debts, starting with the smallest to the largest, regardless of the interest rate. Then focus on making the minimum payments for everything except the smallest, which you will focus on. Then you repeat it with the next one and continue until all debts are gone.
This can take anywhere from a few months to several years, depending on your income and debt level. It can get tricky reaching the greatest, but there are a few ways to manage it.
Save money on monthly expenses
One of the best ways to save every month is to refinance debt like student loans. By consolidating your eligible balances, you can potentially get a lower interest rate so you don’t have to repay as much. Or you can get a different repayment term so that you can make smaller monthly payments over a longer period of time. That way, you can focus on the other amounts in your debt snowball first.
Another way to save is to look for coupons whenever possible. There are many manufacturer coupon websites out there, and you can receive sales advertisements with offers in the mail. Make sure the sale or coupon is on items you’ve already received so the products don’t go to waste. Even so, you should shop around to find the best price. Sometimes the private label item is still cheaper than the brand name with a coupon.
Start a side hustle business
Of the many different options listed here, it is one thing to remove excess expenses and bills from your life and another to add a new source of income as well. If you really want to start reducing your debt and living a life outside of paycheck, you need to find a way to make more money.
Some of the most effective and easiest ways to get into this process are:
- Start a website or blog and learn affiliate marketing
- Sell your unwanted goods and clothing on ebay / marketplace
- Become a freelance writer or designer
- Create a new job profile for a skill on Fiverr
There are literally thousands of ways to make money online and it really is just a question of investing the time and work. YouTube is one of the best platforms to learn anything for free, so be sure to use it!
Look for free entertainment
Carefully estimate your expenses and cut out whatever you don’t need. Can you really afford a few hundred dollars a month for your hobbies or entertainment? Of course, saving money doesn’t mean sitting around doing nothing in your free time. Instead, look for free activities. Get a card from your local library and check out movies and books so you don’t have to pay for your subscription service.
There are many free activities, such as walking in the park or hiking and walking. Some areas have free concerts or other events. And if you have kids, there are probably plenty of free things they can do. If you want a productive hobby, consider a craft like sewing or woodworking. Then you can create handmade gifts for family and friends so you don’t have to buy anything for them.
You might also consider getting rid of your gym membership. Instead, look online for workouts that you can do at home. You might consider using the money you would spend on membership and investing in equipment so you can work out from home.
Remove unnecessary monthly costs
Of the many different ways to pay off debt, one of the best is to simply start removing excess costs and expenses from your life. As much as we all love a good Starbucks, a chic dinner, or even an extra pair of designer shoes … this really isn’t necessary if you are living a life in debt.
Take a moment to look through your credit cards and see where you are spending a lot of time. And don’t forget to keep an eye out for any subscriptions that you might get monthly for things that you don’t use. This is often gym memberships, streaming services, or anything else that you might have signed up for and forgotten about.
How to Eliminate Debt From Your Life Everyday
At the end of the day, you probably got into debt not from the actions you took on any given day – but over time. This is a process and so is debt reduction.
Read through each of the recommended tips above and start implementing them on a daily basis. Even with a few dollars a day subtracted from your net debt, you are preparing for a much better position on the road.