Become Debt (and Stress!) Free in 4 Steps!
Getting out of debt may seem like a long painful process that requires a lot of hard work and determination. Okay, so maybe it is. But it doesn’t have to be that long of a process. There’s no doubt that you will have to make some sacrifices in order to get free and clear of all your debt, but the good news is that it’s worth it and you may be able to do it a lot faster than you ever thought possible! Your debt may seem insurmountable to you now, but when you commit to becoming free of the burden of debt, you will begin making great strides in a short amount of time. Are you ready to get out of debt fast? Let’s do this!
Read Your Bank Statements
Not the most exciting thing. I get it. In fact, I know that you’re probably dreading it. I did too!) However, looking over your financial situation is the only way to get a grip on what is going on with your money. Get a grip, then manage it. You need to look at three things:
- How much are you bringing in?
- How much are you spending?
- What do you owe?
These three simple questions are crucial to helping you get out of debt fast because they will help you understand what you are doing and how you can do things better. It tells you where your money is going and where it should be going as well as how much money you have to work with all together.
Stop Your Spending to Freeze Debt in its Tracks
Once you know all about your monthly spending habits and the payments you must make every month to stay current on your bills, it’s time to free up some cash for paying off those debts. The best way to do this and the only way to do it quickly is to eliminate all spending that you don’t need. House, payments, groceries, utilities, etc. are all needs so they’re safe. Wants, on the other hand, are not safe and you should work on removing any unnecessary spending from your monthly budget. If you are going deeper into debt each month, this is especially important, but no matter what, you need to spend less in order to afford to pay off your debts.
Pro Tip: Get a copy of my book, The Spender’s Guide to Debt-Free Living: How a Spending Fast Helped Me Get From Broke to Badass in Record Time, to learn about how I got completely out of debt in only 15 months!
Get Out of Debt Fast by Targeting High-Interest Balances
With more money available to pay your debts down, you have a crucial play to make. Many people struggle on this step because the right move is not the most gratifying right off the bat. However, the change in your outstanding debt will be more significant and lead to much faster elimination of all debt. The choice is what debt to pay off first.
You should make minimum payments on all balances and then target one balance for termination. Many people choose to pay off the smallest balance first because they get a small high from achieving a zero balance so quickly. Don’t fall for it. Eliminate the biggest debt with the highest interest first, because as you pull the balance down the interest becomes less powerful and your debt will go down faster. The longer you wait on high-interest balances, the more money you are throwing away and you have given up too much to just throw away money.
When you do a Spending Fast combined with paying off the high-interest rate debt first you will get the best of both worlds!
Pro Tip: Find out more about this step in my book under the Debt Hit List section.
Increase Your Income To Speed up the Process
Repeat the process of paying off one debt at a time using a Debt Hit List (mentioned above). You will pay everything off faster than you ever thought possible. One final step in quickly eliminating debt is to find a side gig or a way to bring in some extra money. Side gigs do two things: they keep you away from spending, and they allow you to be more productive. The money you make will help you reduce your debt balances faster and get you closer to building an emergency fund so you never have to go back into debt again.
Pro Tip: This Side Gig Master List with Over 195+ Side Gig Ideas is a GAME-CHANGER!
BONUS STEP: Keep Going!
It might sound silly to say this last step but I promise you, IT’S IMPORTANT! As we are changing our habits it’ll be easy to “slip back” into old habits and old ways! Please know that this is VERY normal! The important thing here is to KEEP GOING! If you do buy things you shouldn’t, return what you can, re-commit, learn what you can from what happened, and then, KEEP GOING. Stay committed!
Pro Tip: Join us in the Spending Fasters Community. We’ll cheer you on! You are not alone!
What tips do you have for getting out of debt quickly? Tell us in the com