When you’re staring down a mountain of debt, it feels like there’s no way out. You might even be tempted to say “screw it” and charge something else on your credit card before the minimum payment comes due. But if you do that, then suddenly you’re in an even worse position than before—and now with interest fees on top of everything else!
Make a Budget The first step to paying off debt fast is making a budget. You might think this is a boring task, but it can be really helpful and even fun! First, write down your income and expenses for the month. This will give you an idea of how much money is coming in and going out each month. If there are any surprises (like medical bills), make adjustments accordingly so that your budget remains realistic throughout the year.
Understand that This Is Going to Be Hard, But That It Will Be Worth It in the Long Run and You Can Do Hard Things. You’ve probably heard this before, but it’s true: debt sucks. It can make you feel like a slave to your bank account and keep you from enjoying life because of how much money goes toward paying off loans and credit cards each month. But having no debt at all? Well that sounds pretty great too! If getting out of debt seems like an insurmountable task then consider focusing on one thing at a time–like paying off one credit card first before moving onto another card with lower interest rates or higher monthly payments–and don’t get overwhelmed by all the information out there about how best to tackle your financial situation (or lack thereof). Remember why you’re doing this: financial freedom!
Make a goal to pay off debt and set a time frame for when you want to be debt-free. Create a plan to get there. Write down your plan, including how much money will be going towards each bill, what you can do with any extra cash (like paying down more of your loan), the dates when payments are due, etc. You’ll want this information handy so that it’s easy for you or anyone else who needs it at any given time. Communicate with your partner about your financial goals and track progress together as often as possible!
So, what are you waiting for? Get started today!