How to get out of debt – 5 simple steps.

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How to get out of debt;


How to get out of debt, in 5 steps:

1. Look at how much you bring in, look at how much you spend. Make sure you spend LESS than you bring in. If that’s not what you’re doing now, sit down and think hard… find ways to cut your spending.

2. List your debts, one by one and start tackling them in the order you are most comfortable with. Some people pay the debt with the highest balance first, others prefer the snowball-method where you pay the smallest balance first before moving to the next one.

3. Negotiate lower interest rates on your existing debts – it doesn’t hurt to ask and the very worst that could happen is that they say No. Right?

4. Learn to save for things you want and need, after your debt is paid off you are able to throw the money you were wasting on interest and debtpayments into savings accounts so you can get ahead instead of living from cheque to cheque and lastly;

5. Break old habits, recognize WHY you are in debt and stop those processes. Like to window shop but always come home with $50 widgets? Leave the money at home, replace bad habits with good ones and stay on top of your money. Money is a finite thing, once it’s gone it’s gone and it gets harder and harder to earn it all back once you’re in the hole. Learn from my mistakes before you find yourself in a similar or worse position.

PS: IMG source.

Published by Renée

I write about my life, travel and my financial up and downs on my blog, Nickel By Nickel, while contradicting myself daily. ;)

2 thoughts on “How to get out of debt – 5 simple steps.

  1. It’s amazing how simple and basic it is to get out of debt. There’s no magic bullet here. It’s the DOING that people have trouble with. Sacrificing those trips to the movie theater and the new-car-every-three-years just to get out of debt? Crazy stuff, haha. I’d say at least 80% of people don’t practice these basic habits.

    Like

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