Home Finance Digging Your Way Out of Debt, Once and For All

Digging Your Way Out of Debt, Once and For All

by Paul Watsdon

Debt is a topic that plagues many people of all ethnicities and it can cause some serious stress in your daily life. Living beyond one’s means is usually to blame for the building of debt, but it doesn’t have to be this way. You can right the ship, make debt a thing of the past, and leave it there. Here are a few tips to help you dig your way out of that four-letter financial burden.

Use a Loan to Consolidate Payments

Taking out a loan might be the last thing on your mind if you are in financial turmoil but, in the grand scheme of things, it can be beneficial. Take note of your biggest monthly payments and lay them out in front of you, minus your rent or mortgage. Car payments, credit card bills and anything else weighing on your financial stability should be brought to the proverbial table. This way, you can decide which items can be paid off with a consolidation loan from one of the loan companies in Duncan OK (or wherever you happen to live). Granted, you’ll have a new debtor to pay, but at least you’ll pay off a few other companies, thus helping your overall credit and debt issues in the process.  

Save All of Your Pennies

People don’t actually resort to rolling up their pennies anymore, but the idea still rings true. Saving your money may seem difficult, but it can be accomplished with determination. If you find it hard to resist spending, set yourself a goal to help motivate you. Having something to work toward can help keep money in your pocket as you’ll second guess any other purchases along the way. Then, when it comes time to make that purchase, you’ll have the money to do so and possibly some extra to keep stowed away.

Track Your Money

Knowing where your money is spent every month will allow you to make any adjustments needed to dig yourself out of debt. You’ll be able to take a good look at your spending habits and tackle any problem areas. Unused subscriptions should be your first target and then you can move on to habitual repeat purchases thereafter. Beyond that, you can look at your cable or cell phone bills and see if you can cut back on those services to alleviate excessive money from leaking out of your bank account. 

The Biggest Problem of Them All

One of the biggest reasons for being in debt is overspending. The other is student loans, nasty little gems that sit glaring at you after you’ve completed college and for years thereafter. It’s no simple task to knock out student debt and many people find themselves hard-pressed to do so. One of the main things you can do in order to help yourself get out from under this burden is planning. Plan to free up money in other areas to pay down student loans. If you were considering a new car and that lovely payment that comes along with it, think about your current vehicle and if it really needs to be replaced or you just want something new. If it’s the latter, then postponing a new car purchase can be your ticket to financial freedom when it comes to your student loans. 

Once you’ve paid off this huge sum of money, you’ll be able to breathe easier, and maybe you’ll even feel a sense of accomplishment for knocking down and knocking out that seemingly insurmountable task.