Debt Begone!
DEBT- Nobody wants it, nobody likes it, but lots of people have it. According to Debt.org, "American household debt hit a record $13.21 trillion in 2018".
Depending on the amount of debt you have, it's sometimes hard to see "a way out". One thing I would suggest is really taking a close look at what you owe. Take some time to see it all on paper (or in a Spreadsheet). List the companies/persons that you owe and how much for each. The number may be scary, but seeing your starting point will really help you as you begin to work your way out of debt. This would be a great monthly exercise. For one, you'll always know precisely how much you owe and secondly, you can see that number decrease more and more over time. If that doesn't get you excited, I don't know what does.
Once you know your numbers, it's time to get started. It's important to at least pay the minimum balance on each debt, this ensures that you won't get late penalties and added interest which only makes your debt amounts rise, digging you into a deeper hole. Then choose one bill (any bill really but if you ever heard of the debt snowball, you may choose the smallest) and add any extra you can each month in addition to the minimum payment. Keep at it until you've paid it off. This is a great way to pay down those debts. You can then update your monthly balances to reflect your progress. Also, try calling the companies to make payment arrangements. The key is to not to get stressed. Pay what you can, and pay it consistently. You can do it!
Making extra money to pay down debt can be challenging, but not impossible. Use the saving tactics shared in other posts and then find a way to increase your income. This may mean selling some of your things, getting a second job or part-time job ( many people have had success driving for Uber, Lyft or working for companies like GrubHub, DoorDash, InstaCart, Shipt, etc.) Working on the weekend as a host/hostess or as wait staff at a restaurant could also bring in some extra dollars.
As a college student, I remember working a summer internship during the week and a small job on the weekends which I referred to as my "gas money" job. In the same way, you can find your "pay down debt" job.
References:
Debt.org. (2019). [online] Available at: https://www.debt.org/faqs/americans-in-debt/demographics/ [Accessed 20 May 2019].
That's a whole lot of money!
So what does this tell us? This means that if you are in debt or have debt, you are not the only one. While this may not be a reason to celebrate, it may offer some comfort knowing you're not alone in the battle to be debt free. Some may argue the benefits of "good debt", but that's for another time. For now, it's important to focus on reducing and eventually eliminating your consumer debt.
There are many sources of debt including but not limited to the following:
- Credit Card Debt
- Automobile Loans
- Student Loans
- Personal Loans
- Mortgage
- Medical Bills
Will I ever get out of debt?
As Sherman Klump said in The Nutty Professor "Yes, I can"! So yes, YOU can! 😉
Depending on the amount of debt you have, it's sometimes hard to see "a way out". One thing I would suggest is really taking a close look at what you owe. Take some time to see it all on paper (or in a Spreadsheet). List the companies/persons that you owe and how much for each. The number may be scary, but seeing your starting point will really help you as you begin to work your way out of debt. This would be a great monthly exercise. For one, you'll always know precisely how much you owe and secondly, you can see that number decrease more and more over time. If that doesn't get you excited, I don't know what does.
Once you know your numbers, it's time to get started. It's important to at least pay the minimum balance on each debt, this ensures that you won't get late penalties and added interest which only makes your debt amounts rise, digging you into a deeper hole. Then choose one bill (any bill really but if you ever heard of the debt snowball, you may choose the smallest) and add any extra you can each month in addition to the minimum payment. Keep at it until you've paid it off. This is a great way to pay down those debts. You can then update your monthly balances to reflect your progress. Also, try calling the companies to make payment arrangements. The key is to not to get stressed. Pay what you can, and pay it consistently. You can do it!
Making extra money to pay down debt can be challenging, but not impossible. Use the saving tactics shared in other posts and then find a way to increase your income. This may mean selling some of your things, getting a second job or part-time job ( many people have had success driving for Uber, Lyft or working for companies like GrubHub, DoorDash, InstaCart, Shipt, etc.) Working on the weekend as a host/hostess or as wait staff at a restaurant could also bring in some extra dollars.
As a college student, I remember working a summer internship during the week and a small job on the weekends which I referred to as my "gas money" job. In the same way, you can find your "pay down debt" job.
Get creative, find a way, make a way, because debt free is the way to be!
References:
Debt.org. (2019). [online] Available at: https://www.debt.org/faqs/americans-in-debt/demographics/ [Accessed 20 May 2019].