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6 Tips That Can Help You Get Out Of Debt

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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      Published on November 5, 2020

      8 Best Finance Apps For Effective Budget Tracking And Planning

      8 Best Finance Apps For Effective Budget Tracking And Planning

      Looking for ways to effectively track, plan, and manage your budgeting? Well, there is a multitude of apps for that! Finance apps are the best options around for tracking and planning your budget and keeping you accountable. After all, using a pen and paper can make it cumbersome to track.

      The apps that we’ve listed below do a ton of the heavy lifting for you and provide a wide array of functions to help you with your financial needs.

      How to Pick a Suitable Finance App

      When looking at some of the best finance apps that are ideal for budgeting, we found these particular features to be important. Keep these in mind when looking for ideal finance apps.

      • User interface – Navigation is key in any circumstances of an app. This is especially true for helpful apps like finance apps. You want to be using them regularly. As such, the interface should be simple to navigate.
      • Habit building – Finance tracking is all about building money habits, and apps have unique ways of building those habits. There is the app itself but features like push notifications are also essential in some circumstances.
      • Syncing – You should be able to connect your bank account to these finance apps, and that process should also be pretty easy to do, too.
      • Usefulness – The number of features that the app has should be relevant and make it something you want to check. Sure, some of these finance apps work in the background, but those on this list help significantly when you check them regularly.
      • Data presentation – The number of reports and analytical data is a core focus for these finance apps as well since it allows you to make sound financial decisions.

      1. Best Finance App Overall – Mint

        If you’re looking for an overall quality finance app, Mint is the first that comes to mind. It’s one of the most well-known personal finance apps around and for good reason. It provides you with a complete financial picture all in one place.

        By connecting your debit and credit cards to your account, Mint will provide you with a list of transactions and break them into categories, showing you exactly where you are spending your money. You can also track billing and create a budget on the app to help you stay on track of your savings goals.

        A new feature that Mint rolled out recently is the ability to see your credit score. Through this feature, you can also see the factors that are contributing to your credit score. Beyond that, you can also track investments and schedule routine utility payments.

        Download Mint here.

        2. Best Finance App for Debt Management – YNAB

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          You Need A Budget (YNAB) is an app that is built on four rules:

          1. Give every dollar a job.
          2. Embrace true expenses.
          3. Roll with the punches.
          4. Age your money.

          Based on these four rules, the app will help you build a better budget while also allowing you to gain control of your spending. You can import transactions from your checking account and apply them to each budget category to get an accurate look at your spending.

          This app also provides detailed reports to show you your spending habits while you are striving to keep a balanced budget in the various categories. YNAB will also point out other spots that you can improve your spending.

          According to YNAB, the average user will save about $600 in the first two months and can save over $6,000 in the first year. It sounds promising for a debt management app.

          Download You Need A Budget here.

          3. Best Wealth Management App – Personal Capital

            Another solid choice is Personal Capital. It focuses on wealth management but also serves as another personal finance app. Through this app, you can manage assets and investments along with setting up a budget for everyday spending accounts.

            This service integrates with over 14,000 financial institutions, allowing you to link your bank account(s) directly to the app and through it. By linking your bank account to the app, you can track your spending, too.

            That said, the app really shines when you connect it to your investing accounts. By doing so, you have a convenient spot to track your portfolio by account, asset class, or individual security. The app can also show you opportunities to diversify, manage risk, and find any hidden fees that you could be paying.

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            You can also compare your own portfolio to the major market benchmarks to help you keep track of whether you’re on track to reaching your goals. You can also get financial advice from this app as the financial advisors here are registered and can provide you with advice tailored to your goals.

            Download Personal Capital here.

            4. Manage Your Subscriptions – Clarity Money

              One of the popular business models that companies are moving to these days is subscription-based. While this model does have its merits, one of the many problems that we face with this model as consumers is that we find ourselves subscribed to things we don’t need. Paying for a streaming service is nice, but many people often are subscribed to multiple streaming services.

              Because it’s so difficult to remember and even track all the subscriptions we’re paying for, this particular app can provide us with clarity. Clarity Money is all about bringing to light what you are paying for and providing you with a convenient way to cancel and throw away unused subscriptions you’re not using.

              Beyond removing unnecessary subscriptions, the app also looks at your spending behavior and offers suggestions for ways to improve your financial health. You can even make deposits to your savings account through this app.

              Download Clarity Money here.

              5. Best Bill Paying App – Prism

                If you’re looking for a convenient app that shows all of your bills and financial apps, this is the app for you. Prism takes pride in having 11,000 billers on this app. This is the highest amount of billers on bill-paying apps you can find. From billers like large banks to even small utility companies, chances are high that the company you’re paying for accepts this app.

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                In terms of actual function, you can add your bills to the app and the app will then automatically track it. It’ll send you date reminders to pay the bill as well so you won’t get hit with late payments. On top of that, you can schedule payments to be made the same day or several days in advance as well. Prism is a nice app that allows you to pay bills in one sitting without having to log in to several accounts.

                Download Prism here.

                6. Best Shared Expenses Management App – Spendee

                  Many of these apps are focused on providing services to a single user. This is natural considering most of these apps are asking for your banking information. However, this is one of the few apps on here that allows multiple people to use it.

                  With Spendee, the idea is to create shared wallets with your friends and family that you can then use to manage shared expenses for a household budget. You will need to get bank transactions for this to work, but that is fine. After that, the app will categorize all of the transactions and tally how you’re spending money every month.

                  You’ll be able to add cash expenses manually as well for accuracy. Beyond those features, you’ve got bill tracker functionality to ensure you pay your bills and avoid late payments. There is also a budget component that will allow you to save and ensure you don’t overspend.

                  Download Spendee here.

                  7. Best Visuals on Finance App – Mobills

                    Mobills is another bill management app that offers a great presentation of information. The app focuses on bill management and offers typical features you can find in these apps. These include categorizing your bills, paying them through the app, and setting up budgets to ensure you stick to them.

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                    That being said, Mobills delivers these features remarkably. It presents you with charts that are completely interactive and can help you analyze your financial life. Also, moving bills to various categories is easy and smooth to do.

                    Download Mobills here.

                    8. Best Finance App for Budgeting Overall – EveryDollar

                      Dave Ramsey is a personal finance expert who urged people to follow a zero-based budget method. This method is the idea that every dollar serves a purpose in your budget. It’s this concept that has inspired the name of this app: EveryDollar.

                      With that in mind, the app provides a monthly expense tracker that you can connect your bank account to. This will take note of important transactions to ensure your spending is in check. You can even split expenses between multiple budget items. The tracker also provides you with an overview of how much money you’ve spent this month and what you’ve got left.

                      Staying true to the name, EveryDollar also has a money management aspect that will help you set up a money management plan. You’ve got access to money management experts who will guide you through financial planning.

                      Download EveryDollar here.

                      Final Thoughts

                      Many financial apps are available to help you achieve your financial goals. Each app has its own perks and benefits to consider. The nice thing about many of the apps on this list is that they have free trials that allow you to get a good feel of them before fully getting them.

                      More Finance Apps

                      Featured photo credit: Austin Distel via unsplash.com

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