So you want to pay off your debt.
Thats a great goal!
To get on the financial path you want to be on, you have to commit.
Aileen Perilla/ The Penny Hoarder
Heres how to get started.
Go through them in order.
If youre behind on utilities or rent, catch up on those first.
Then list your bills from highest to lowest interest rate.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
Sign up for accounts withCredit Sesameor Credit Karma to double-check you dont miss a single creditor.
confirm to exclude time-barred debts.
Focus with intensity on the first bill on your list.
attempt to make minimum payments on the rest.
Did you know?
Azero-based budgetputs all your expenses in order of priority.
Your necessities are your top priority, and your debts or catch-up payments get prioritized over wants.
Youll spend every dollar of each paycheck on whatever is in your budget.
If youre new to budgeting, try splitting your month into two separate budgets one for each paycheck.
Theenvelope systemis a great complement to a zero-based budget.
Cut Up the Credit Cards
At this point, if you have multiple credit cards, let them go.
You know whats coming in and what needs to go out.
You know if you have enough income to cover an expense or if youre coming up short.
ShaKreshia would literally take my credit cards out of my wallet and keep them at home, Hill said.
You dont need to close your credit card accounts to stop using them.
Do whatever it takes to stop your debt from going up while youre getting current.
Remember: This isnt forever.
Youre ripping off a Band-Aid to heal a wound thats been festering for a long time.
Eventually, youll be in a place where you could indulge again.
But that day is not today.
It might be hard, but you and your kids can get through it.
Here are some expense-cutting ideas to get you started:
5.
Manually Track Your Spending
To stick to your budget, its imperative that you track your spending.
EveryDollaris a great free app for manually tracking your purchases to check that theyre aligned with your zero-based budget.
Increase Your Income
Organizing your budget and lowering your spending are just the first steps.
Youll need to earn more money than you were bringing in when you got into this situation.
Organize your schedule to make time for increasing your income.
Again, its not easy, but its not forever.
Tackle Your Debt
Achievement unlocked!
And the good news?
You already know how!
Jen Smith is a staff writer at The Penny Hoarder.
She and her husband paid off $78,000 of debt in less than two years on two less-than-average salaries.
She gives money-saving and debt-payoff tips on Instagram at @modernfrugality.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
