If you are someone who has a ton of debt and doesn’t know what to do about it, don’t worry you’re not alone. Over 70% of the population in America is swimming in crippling debt. However, you can easily manage and reduce your debt, anything from consumer debt to credit card debt can be reduced by following a few simple strategies. Here are some of the smartest ways to manage and reduce your debt within a short period of time.
Stop using credit cards
Credit cards are your enemies. Not only are they one of the biggest sources of your debt, but they also destroy your credit score. You need to get rid of all your credit cards as soon as possible. You might see credit cards as the only option when you are struggling with money but it is never a good idea to rely on them especially when you are planning to get rid of your debt.
Make a debt repayment strategy
A debt repayment strategy will help you take a structured approach towards paying off your debts. You should start by paying the highest interest debt so you stop accumulating more debt every month. Meanwhile, you will pay the minimum necessary amount for other debts. This method is also known as the Avalanche method.
Ask friends and family for help
When you are struggling with paying off your debt and can’t seem to find a way out you should borrow money from friends and family rather than going for a consolidation fund. The best thing about borrowing from friends and family is that you can take your time paying them back and you don’t have to pay extra interest fees every month.
Change your habits
If you are a careless spender and an impulse buyer you need to change your habits right now. You need to stop spending money on unnecessary things and direct it towards paying off your debt. Make sure that you don’t pull out your credit card the moment you like something at the grocery store. Make a list before going grocery shopping and stick to it no matter what.
Never miss your bills
When you are trying to get rid of your debt you need to save every penny that you can, so make sure that you never miss your bills, otherwise, you will have to pay extra money in late fees which is just going to slow down your progress.
Set achievable milestones for yourself
One of the biggest challenges that most people face while trying to off their debt is a lack of motivation. They give up halfway through because they don’t see instant results. That is why you should set small and achievable financial goals for yourself and celebrate them once you achieve them. This will give a sense of achievement which is enough to keep you motivated and on the right track.
The bottom line
One of the most important things when it comes to paying off your debt is consistency. You need to be consistent with your struggle and make sure that you always stick to your plan. Getting rid of your debt can become much simpler only if you are willing to put in the work, so buckle up and get ready because this isn’t going to be a cakewalk.