If you, like many people at this moment, are currently in debt, but want to turn this situation around, you may find the following as insightful tips.
If you still need guidance on the first (and big) steps to get out of debt, check out our guide on spending tips and debt payoff strategies you should know.
However, this article, it’s more about simple actions and daily activities to help you get out of debt as soon as possible.
1. Acknowledge your debt
Like any habit you're trying to break, the first step is acceptance.
Begin by understanding the total amount of your debt and be determined to eliminate it.
Here are some tips for accepting your debt without fear:
Write down "I will get out of debt" 10 times.
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Create a chart or some visual representation to physically see how much you owe and print it out.
Tell about it to someone of your trust. You don't have to share every detail, but don't hide it either. If people around you know your situation, they'll help support your efforts.
2. Negotiate everything… including your debts
It may seem unbelievable, but you can save a lot by negotiating everything you can in your daily life.
From your paycheck to no extra charge for avocado on your burrito, if you follow the right track you can save some bucks on cell phone mobile plan, your credit card rewards and even your debts, everything is negotiable if you have something of value to offer.
Changing carriers can help you save on a new cell device, if your old phone is no longer functional.
Negotiating on everything you can will add up to significant savings.
Debt relief services can help you consolidate your debts by negotiating each one, and potentially securing a good discount if you commit to paying on time.
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3. Spend all your money on paying off debts… and earn more money ASAP
You have a goal; now do everything possible to achieve it. This means making sacrifices for a while to allocate as much as possible toward debt repayment.
Cut back on unnecessary luxuries. If you get $100 for your birthday or find money in your coat pockets, put that extra money towards your debt.
Being in the hunt for savings to pay your debt will help you find more money and keep you focused on your goal to pay it off.
If you're thinking about making an extra effort, now is the time to look for that second or third job.
Start charging for things you enjoy doing or work a little more on things you already do well, aiming to increase your income and pay off your debt faster.
4. Change your preferences
Do you really need all those TV subscriptions or to dine out that often? Could you have a cheaper cell phone plan, even if it means scrolling through your social media accounts when connected to Wi-Fi?
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This might sound less than glamorous, but it's about appreciating what you have and knowing you don't need everything you want, and on a brighter side, you’ll stop wasting time and instead will be able to focus better on what you have to do.
Keep this idea in mind daily and expand it. We live in a world full of free content, both entertaining and educational. Try the rather and take benefit from it by subscribing to free courses and acquiring (or ramping up) an habit of reading.
5. Learn more about money
Have you noticed how when you constantly think about something, you start to see and hear about it everywhere?
Aim for the same effect with your financial education.
Instead of going out to spend money or waste time, dedicate more time to learning how to manage your money better.
You'll find that personal finance is simple and fun.
Managing your money well means knowing yourself better, and that's a very enriching growth process.
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Luckily, you can read hundreds of articles on our site and you can also subscribe to our social media accounts with posts of useful content that won't cost you a dime.
6. Use the power of "NO"
Again, this comes down to knowing yourself.
Being in debt means you haven't been using the power of NO effectively.
Perhaps you don't realize that you can improve your financial situation by using the right words.
Don't go spend your money out of ‘politeness’, don't get involved in projects that won't benefit you financially.
Don't limit yourself, don't settle.
Remember, social commitments or anxiety are temporary, but what matters in the long run is that your actions align with your goals.
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Maybe you're not yet the person you want to be, but right now, you can avoid being the person you don't want to be.
Make decisions that align with your plans and discard what doesn't serve you.
7. Identify the essentials and learn to live with less
Identify the essentials and learn to live with less
Humans are adaptable. We used to live in the open, without air conditioning, heating, or a cell phone that does wonders, just to name a few of the amenities we’ve come to get used to.
The "problem" is that we get used to the good stuff very fast, and if we suddenly lose our comfort, we suffer as if we're lacking air.
Be more conscious of what you truly need.
We're confident that by reducing the number of things we buy, life becomes more basic.
The mantra is simple: "less, but better."
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We remind you that it's possible to live better with less.
8. Use cash as your payment method
Even though we generally advocate for the responsible use of credit, perhaps a glitch in the system has led you into debt, right?
In such cases, the opposite approach is recommended:
Managing your finances and setting limits is easier when you use cash.
We suggest making a realistic budget and dividing your cash into small envelopes for different expenses such as rent, food, and outings right from the start.
This way, you know that once the cash in an envelope is gone, you've reached your spending limit for that category.
9. Prepare your meals every day
We all know that dining out isn't great for our health or wallet, and when it comes to food delivery you often get the worst of both worlds.
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So, if you're in debt, now is the perfect time to learn to shop groceries like a pro.
You'll realize that learning to cook has many benefits, including the ability to improve your diet without overspending and discovering new talents you may not even know you had.
10. Do a shopping detox
It used to be easier to avoid unnecessary purchases simply by staying away from stores where you tend to make impulse buys.
But now, we're faced with a world of online deals a click away from "once-in-a-lifetime opportunities."
It’s time to end these temptations (hopefully for good):
- Avoid revisiting stores.
- Unsubscribe from retail newsletters
- Reduce your time on social media.
If you shift your "shopping" time to "personal finance" time, soon you'll be the one giving us tips and advice.
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11. Wake up earlier!
Some studies show that early risers tend to be in a better financial situation.
According to a 5-year study of 177 self-made millionaires, Thomas C. Corley, author of the book Rich Habits, found out that almost 50% of them woke up at least 3 hours before their workday actually began.
You can learn more about this in "The 5 AM Club Challenge."
So, if you're currently struggling with debt, get used to the idea of starting your day before sunrise.
Use those extra time to tackle the debt you're determined to pay off.
