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6 Tips That Can Help You Get Out Of Debt

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6 Tips That Can Help You Get Out Of Debt

A lot of people don’t think that being in debt is a terrible thing. They think of it this way until they find themselves in debt without any options of getting out of it. Most people actually become indebted because of this attitude.

Fearing debt is a good thing — it keeps you in check. Things happen so quickly and before you know it, you can find yourself caught up in a difficult situation. If you didn’t have the right mindset before, when you really should have taken action to avoid the mess you’re in now, then it’s time to change your attitude and get back on track.

Don’t be scared; this happens to a lot of people and you are not the first nor the last person trying to get out of debt. There are many of us who have gone through the same thing, and if others could get out of it, why shouldn’t you?

There is no time for fooling around and you must start working on this issue seriously. It’s not going to be easy, but then again, nothing worthwhile comes easy.

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1. Create a plan

The first thing you need to do is sit down and look at all the numbers. See how much you are spending, where you are spending it, how much you are earning, and come up with a plan based on all the numbers. You can even see where you can save money by just looking at your budget.

Who knows? Maybe you subscribed to something a while ago and forgot about it since it didn’t mean anything to you back then, but now this money can be used for paying off your debt on a monthly basis. See if you have any unnecessary costs you can cut and come up with an amount you can afford to pay off each month.

Once you set this, you should make sure to stick to it and never neglect your plan. One of the most important factors when trying to get out of the debt is not to get demotivated. When you set monthly goals, you will achieve mini-victories and encourage yourself even further.

2. Pay off your high-interest debts first

If you have credit cards or some other form of debt that has high interest rates, you should look to pay them off first. Interest rates will pile up over time and the longer you wait, the more money you will lose. Pay them off as quickly as possible and improve your credit score as you start to get your finances back on their feet.

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3. Prepare your food by yourself

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    One of the first steps is to start saving up and, depending on the amount of debt you have, drastic measures might be required. This doesn’t mean that you won’t eat or that you will be forced to eat unhealthy foods. On the contrary, you can eat solid, healthy foods for a cheaper price than at restaurants or fast food joints.

    Get simple ingredients and cook decent meals. Set aside some time for preparing your food and you are good to go. When you buy pre-prepared food, you also pay for the service of preparing the meal for you — you do this yourself and cut those costs. There are many recipes for cheap and tasty meals you can find as well, so that your stomach can enjoy itself while you pay off your debt.

    4. Find a second job

    Times are hard, and if you are really that desperate and in a hurry to pay off your debt, you can find an additional part-time job that can earn you extra cash. Besides saving up money, it is also important to earn more, and you can do this by putting in additional work at your current job and working overtime or by working two jobs at the same time. Everyone has some skills or talents and you can try and monetize yours, no matter if we are talking about teaching English online, writing, babysitting, delivering packages, etc.

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    Anything you can find will mean a lot to you, especially if you get a job at a restaurant where you can get free food as well. It won’t be too fresh, but it’s still healthy food and you won’t pay a dime for it. There are a lot of people who have two jobs just because they want to advance in their careers, and if they can do it, why shouldn’t you try this method as well to save yourself from a financial disaster?

    5. Sell the stuff you don’t really need

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      Another way you can quickly earn some cash is to sell some of your stuff. Most people have a lot of stuff just laying around. We don’t really need this stuff to live our lives, and we just cling to it, hoping that we will do something with it in the future. Well, this is a good opportunity to do something with this stuff — sell it and help yourself get out of debt quickly.

      If you live in a suburban neighborhood, you can set up a garage sale. This is usually the quickest and the cheapest way you can sell a bunch of stuff without having to put in a lot of work and time. If not, you can sell stuff online on various marketplaces. This may seem like a long shot to you, but trust me when I tell you that no matter how much something may seem uninteresting to you, to somebody else, it might be the thing they were waiting for their whole life.

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      6. Move back in with your parents

      If you are still single and you don’t have a family, a good move is to try and move back in with your parents for a while (if they let you). This will give you the option to use that rent money for your monthly payments and speed up the process even further. Your parents might even offer you a meal from time to time — nothing wrong with that. Of course, you will have to listen to them give you lectures about your life and where you went wrong, but hey, this time it seems like they have the right.

      Try out these hacks and I guarantee that you won’t regret it. Like I mentioned before, this is no game and you will have to take your debt seriously if you want to deal with it as quickly as possible. No matter what type of debt is burdening you, there is a way out of it. You just need to work hard and take responsibility for your actions. Do not even think about getting a loan to pay off your old debt — it is an endless loop of interest rates and you will make it even harder on yourself.

      Featured photo credit: Cathryn Lavery via unsplash.com

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      Ivan Dimitrijevic

      Ivan is the CEO and founder of a digital marketing company. He has years of experiences in team management, entrepreneurship and productivity.

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      Last Updated on January 5, 2022

      33 Painless Ways to Save Money Now

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      33 Painless Ways to Save Money Now

      In a difficult economy, most of us are looking for ways to put more money in our pockets, but we don’t want to feel like misers. We don’t want to drastically alter our lifestyles either. We want it fast and we want it easy. Small savings can add up and big savings can feel like winning the lottery, just without all of the taxes.

      Some easy ways to save money:

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      1. Online rebate sites. Many online sites offer cash back rebates and online coupons as well. MrRebates and Ebates are two I like, but there are many others.
      2. Sign up for customer rewards. Many of your favorite stores offer customer rewards on products you already buy. Take advantage.
      3. Switch to compact fluorescent bulbs. The extra cost up front is worth the energy savings later on.
      4. Turn off power strips and electronic devices when not in use.
      5. Buy a programmable thermostat. Set it to lower the heat or raise the AC when you’re not home.
      6. Make coffee at home. Those lattes and caramel macchiatos add up to quite a bit of dough over the year.
      7. Switch banks. Shop around for better interest rates, lower fees and better customer perks. Don’t forget to look for free online banking and ease of depositing and withdrawing money.
      8. Clip coupons: Saving a couple dollars here and there can start to add up. As long as you’re going to buy the products anyway, why not save money?
      9. Pack your lunch. Bring your lunch to work with you a few days a week, rather than buy it.
      10. Eat at home. We’re busier than ever, but cooking meals at home is healthier and much cheaper than take-out or going out. Plus, with all of the freezer and pre-made options, it’s almost as fast as drive-thru.
      11. Have leftovers night. Save your leftovers from a few meals and have a “leftover dinner.” It’s a free meal!
      12. Buy store brands: Many generic or store brands are actually just as good as name brands and considerably cheaper.
      13. Ditch bottled water. Drink tap water if it’s good quality, buy a filter if it’s not. Get 
          a reusable water bottle and refill it.
        • Avoid vending machines: The items are usually over-priced.
        • Take in a matinee. Afternoon movie showings are cheaper than evening times.
        • Re-examine your cable bill. Cancel extra cable or satellite channels you don’t watch. Watch the “on demand” movie purchases too.
        • Use online bill pay. Most banks offer free online bill paying. Save on stamps and checks, and avoid late fees by automating bill payment.
        • Buy frequently used items in bulk. You get a lower per item price and eliminate extra trips to the store later on.
        • Fully utilize the library. Borrowing books is much cheaper than buying them, but in addition to books, most local libraries now lend movies and games.
        • Cancel magazine/newspaper subscriptions: Re-evaluate your subscriptions. Cancel those you don’t read and consider reading some of the other publications online.
        • Get rid of your land-line. Do you really need a land-line anymore if everyone in the family has a cell phone? Alternatively, look into using VOIP or getting a cheaper plan.
        • Better fuel efficiency. Check the air pressure in your tires, keep up with proper auto maintenance, and slow down. Driving even 5MPH slower will result in better fuel mileage.
        • Increase your deductibles. Increasing the insurance deductibles on your homeowners and auto insurance policies lowers premiums significantly. Just make sure you choose a deductible that you can afford should an emergency happen.
        • Choose lunch over dinner. If you do want to dine out occasionally, go at lunchtime rather than dinnertime. Lunch prices are usually cheaper.
        • Buy used:  Whether it’s something small like a vintage dress or a video game or something big like a car or furniture, consider buying it used. You can often get “nearly new” for a fraction of the cost.
        • Stick to the list. Make a list before you go shopping and don’t buy anything that’s not on the list unless it’s a once in a lifetime, killer deal.
        • Tame the impulse. Use a self-enforced waiting period whenever you’re tempted to make an unplanned purchase. Wait for a week and see if you still want the item.
        • Don’t be afraid to ask. Ask to have fees waived, ask for a discount, ask for a lower interest rate on your credit card.
        • Repair rather than replace. You can find directions on how to fix almost anything on the internet. Do your homework, and then bring out your inner handyman.
        • Trade with your neighbors. Borrow tools or equipment that you use infrequently and swap things like babysitting with your neighbors.
        • Swap online. Use sites like PaperBack Swap to trade books, music, and movies with others online. Also, look for local community sites like Freecycle where people give away items they no longer need.
        • Cut back on the meat. Try eating a one or two meatless meals every week or cut back on the meat portions. Meat is usually the most expensive part of the meal.
        • Comparison shop: Get in the habit of checking prices before you buy. See if you can get a better price at another store or look online.

        Remember that saving money is not about being cheap or stingy; it’s about putting money into your bank account rather than giving it to someone else. There are many ways to save money, some you’ve never thought of, and some that won’t appeal or apply to you. Just pick a few of the ideas that sound doable and watch the savings add up. Save big, save small, but save wherever you can.

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        Featured photo credit: Damir Spanic via unsplash.com

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