3 Do It Yourself Strategies For Paying Off Your Debt

Imagine your life without debt. Go ahead, it’s fun to dream. Think about how relaxing life would be. And think of all the things you would want, if money was no object. Imagine not having to worry about paying your credit card bills. Wouldn’t life be great!

Of course anyone would want a life like that. But it won’t be that way unless you start to pay off debt. It’s not enough that you spend sleepless nights thinking of a solution. Your debts won’t pay off themselves. And worrying doesn’t really help. In fact, it takes away from your ability to act. So if debt has overtaken your financial like, it’s time to do something about it.

If you don’t know how to get started, then here are three simple “do it yourself” strategies you can easily follow:

First, do not buy anything unless you have enough money to pay cash.

For many people with debt, this is the hardest step of all. Because debt becomes a habit that is hard to stop. But you shouldn’t be buying things unless you can afford them. By afford we mean you can buy it and still have money left for other important things. When you just have enough money to pay for it then it means you’re going to spend what you’ll earn for that item only. But you need to have money to buy important things like groceries, gas to get to work, and other essentials. Don’t think that when you have a credit card, you can afford everything you want. Remember that you’ll pay your credit card bill later, with interest! So you’re going to pay for what you’ve bought plus the interest. Be responsible with your finances and don’t spend money you don’t have right in front of you.

Second, you need find ways to save money.

Every time you receive your paycheck, always make it a point that you save some money. Using direct deposit or automatic withdrawal into your savings or checking account is a good idea. That way you don’t have to do any extra work to save. This money will serve as your emergency fund when you suddenly need to buy something for an unexpected expense. You may ask “Why should I save money when I am paying my debt?” Good question. The answer is that when you have money saved up, you won’t need to use your credit cards when you need money. Since using credit cards becomes a habit, so will saving. And paying cash. And to do this you first need to have some cash. So start a small saving account that you can use to learn how to pay cash, and create an emergency fund.

Third, develop a payoff plan by organizing your credit card bills.

Make a list all of your bills, how much you owe, the minimum payment amount, and the interest rate. Make the list in ascending order, with the ones with the lowest balance first. Pledge to yourself that every month you are going to pay each bill no matter what. Any extra money you have should go towards the first debt on the list. By making your list in ascending order, from smallest to largest, you are more likely to see results quicker, and hopefully stay motivated. As you pay off each bill, add that amount to the next bill. Pretty soon you’ll be paying a large amount towards your debt and will start seeing progress!

The key to any plan is to get started. Worrying won’t help. Planning won’t help. And hoping won’t help. Without action, your plan will remain just that, a plan. Keep in mind that there’s no easy way out of a debt. No special secrets. It may take you a while before you can completely pay off your debt. But that is okay. Get started now, and you’ll start seeing results in just a few months. And like a snowball rolling down a hill, your payments will keep getting bigger and bigger and before you know if, you’ll be on your way to paying off your debts!

Kris Bickell runs www.Debt-Tips.com, a website that offers helpful tips & information for getting out of debt, fixing your credit problems, and saving money.

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1 Comment for “3 Do It Yourself Strategies For Paying Off Your Debt”

  1. Children and Divorce

    You bring up the very points I tell clients who want to know how they can get out of debt. Many times they are single moms who are trying to bounce back after a divorce.