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[Guide] Getting out of debt and living free [/Guide]
Note: Some of the information in here may seem like common sense, but to others this may be a gold mine. If you have anything else you like to add (like examples for instance) then feel free to do so.
Let's get started.
Set up a budget:
Doing this will help you see where your money is going and how much money you are able to spare to throw on debt or into your savings account. Avoid spending money on things you don’t NEED. Ex: McDonalds for dinner 3 times a week even though you still have food in the fridge. Speaking of the fridge... that is actually where I hang mine up every month.
Kill off one piece of debt at a time:
I prefer to kill off something that you pay quite abit of interest on. Now if you have a car that you still owe $13,000 on, but has the most interest, I would pay off the next big thing. A loan would be the perfect example. At least after you kill off the loan you can use the money you was using on that and throw it onto your car, or whatever debt you have left. Like another loan… This will help create a snowball effect that will help you faster than you think.
Avoid getting any more credit cards:
In fact, if you’re in debt and don’t have a credit card, then don’t bother even getting one. This will only dig your hole deeper. I don’t know why people seem like they need more than 3 credit cards. That’s just silly to me.
Get rid of anything you don’t need:
Internet would be a perfect example. You pay, say $50/month, for internet. That’s $50 more you can throw on your loan. Or what about your cell phone? Do you really need a smart phone that costs you $100/month? You can switch to virgin mobile and have almost identical plans for almost half the price. That’s another $50 that can be thrown on your car or loan.
Get a second (or third) job:
Yes this sucks, but once you pay off your debt you can quit anytime you want. The sooner you pay off your debt the more money you save on interest in the long run. Unless you have some kind of messed up plan that you’re stuck in.
Look for deals:
I shouldn't have to say this if you're on this site, but don't just buy something right away. Take a look around to see if there is anywhere else you can find the item you NEED is cheaper.
Save!:
You can do this while you’re paying off your debt, or you can wait till you pay off everything. I’d rather wait. But when you’re out of debt, think of how much money you can throw in your savings. Ex: You just paid off your car (which was $250/month) and say a loan (that was $75/month). That right there is over $300 extra in your pocket.
Anyone have anything else to add?
Let's get started.
Set up a budget:
Doing this will help you see where your money is going and how much money you are able to spare to throw on debt or into your savings account. Avoid spending money on things you don’t NEED. Ex: McDonalds for dinner 3 times a week even though you still have food in the fridge. Speaking of the fridge... that is actually where I hang mine up every month.
Kill off one piece of debt at a time:
I prefer to kill off something that you pay quite abit of interest on. Now if you have a car that you still owe $13,000 on, but has the most interest, I would pay off the next big thing. A loan would be the perfect example. At least after you kill off the loan you can use the money you was using on that and throw it onto your car, or whatever debt you have left. Like another loan… This will help create a snowball effect that will help you faster than you think.
Avoid getting any more credit cards:
In fact, if you’re in debt and don’t have a credit card, then don’t bother even getting one. This will only dig your hole deeper. I don’t know why people seem like they need more than 3 credit cards. That’s just silly to me.
Get rid of anything you don’t need:
Internet would be a perfect example. You pay, say $50/month, for internet. That’s $50 more you can throw on your loan. Or what about your cell phone? Do you really need a smart phone that costs you $100/month? You can switch to virgin mobile and have almost identical plans for almost half the price. That’s another $50 that can be thrown on your car or loan.
Get a second (or third) job:
Yes this sucks, but once you pay off your debt you can quit anytime you want. The sooner you pay off your debt the more money you save on interest in the long run. Unless you have some kind of messed up plan that you’re stuck in.
Look for deals:
I shouldn't have to say this if you're on this site, but don't just buy something right away. Take a look around to see if there is anywhere else you can find the item you NEED is cheaper.
Save!:
You can do this while you’re paying off your debt, or you can wait till you pay off everything. I’d rather wait. But when you’re out of debt, think of how much money you can throw in your savings. Ex: You just paid off your car (which was $250/month) and say a loan (that was $75/month). That right there is over $300 extra in your pocket.
Anyone have anything else to add?
This.
