4 Tips to Help Jumpstart Getting Out of Debt
Apr 24, 2017 09:35AM ● Published by Melanie Heisinger
We put together 4 useful tips for beginning the process of pulling yourself out of debt.
1. Make a realistic budget.This might seem like a simple concept, but is actually something that most people struggle with. Being realistic with your spending habits and where cuts need to be made is a key component to decreasing your debt.
Do this by formulating your budget at the beginning of each month. No need to make it complex, keep it as simple as possible. Needs, income, payments going out, etc. Have it all written down and in front of you. Don't live on what's in the bank but what is instead in your budget.
It's difficult to get out of debt without a cushion for yourself. Make sure that you protect yourself from life's inevitable curveballs and don't start tackling your debt until you have at least a $1000 emergency fund in place. Get creative with this and give yourself a timeline. Make it fun!
2. Create a savings for emergencies.
Rank your debts from smallest to largest. Plan on getting rid of the smallest first, putting most of your money into it. Use minimum payments with everything else until that small debt is covered. Then, use the money you were using to pay that off towards the second smallest debt, and so on.
3. Start smallest to largest.
4. Keep your focus.Don't let things slide! Remain focused on your goals. It is amazing how easy it is to get caught up in the day-today, avoid that as best you can! Keeping your focus will ultimately help you the most in the long run, especially when it comes to clearing your debts.