How to Get Out of Debt

by Violet WillettOctober 11, 2023
How to Get Out of Debt

Considering how serious of a matter debt is, it’s no small wonder that there is a constant effort to try to get out of it. Our debts have a way of creeping into other aspects of our lives, making it a little hard to move around as well as we would hope. 

The situation only gets worse when you think about how the average millennial has a debt load of $27,251, as per CNBC’s report. And that’s not even including mortgage-related debts. 

With all that, how can you even begin to save up for your future? Well, a few strategies can help you reduce your overall debt. With the proper discipline, these strategies can even help you clear your debts in a shorter amount of time. 

Strategies Against Debt

  1. Prioritize the smaller debts

Having a long list of bills can overwhelm just about anyone. What you can do with this strategy is to focus on paying off one debt at a time. This is otherwise known as snowballing your payments.

So let’s say you have 3 monthly dues to pay off; Debt A. Debt B, and Debt C. If Debt C is the smallest, you can focus on that one by paying only the minimum for the two others and paying more than the minimum for Debt C. 

  1. Don’t settle for minimum payments

Alternatively, if your funds allow it, try diverting more of your income to paying off those debts. It could be tempting to just stay with paying the minimum, but in the long run, this will just mean you stay under for longer. 

The next time around, go for paying a larger amount monthly. This will mean a certain level of sacrifice on your part; not as much eating out and the like. Despite that, you should find that this will give you more breathing space down the line. 

  1. Try negotiating for a reduction

Debt reduction is a common practice these days, especially when we consider just how many people are actually in debt. In simple terms, this is a way of negotiating more forgiving terms for your ongoing debt.

The results may vary. For the most part, effective negotiations can get you better payment terms while others can figure out a way to stop the debt from growing altogether. 

Everyday Practices to Avoid Incurring Debt

  1. Avoid swiping

Yes, we’re talking about credit cards. You have to understand that with credit cards, each swipe is literally adding to your debt. 

It might just be a bagel from the corner store, but that bagel is only one of the many “small” purchases you make. Over time, these small purchases add up, making it harder for you to catch up.

  1. Eat at home

This will take some discipline but the impact is well worth it. While grocery-sourced meals can cost around $5, a night out averages at about $20. Simple math, right? 

If you can avoid eating out, do so. It’s a wonder how much you can really save by avoiding the neighborhood McDonalds. Hey, you can use the time to perfect your signature cheeseburger! 

  1. Sell excess items

Have you ever found yourselves staring at that old golf set you’ve never used? Well, it might be time to let go. Take a proactive stance against your debt by ridding your home of any unused items you can make a quick buck from. 

  1. Drop the cable subscription

With Netflix, Hulu, and YouTube around, the time of the T.V. is at an end. Cancel those network subscriptions and you should see a massive improvement in your monthly finances. 

This shouldn’t be hard to understand, especially when you consider the fact that the average U.S. subscription usually costs around $20-$25 a month. 

At the end of the day, your debts should take a priority in your life. The fact remains that your debts will incur more fees as you leave them be. Besides, getting rid of your debts faster means you can save up more for your future. Learn more about debts, your finances, and by checking out the rest of AnyCredit.com!

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