If you’ve ever wondered how to get out of debt fast on your own then you’re in luck. There are some quick and easy steps you can follow to help get your finances back on track and get yourself out of debt in no time. Though some of these tips may seem like commonsense they are often difficult for people to discover on their own.
Step #1: Avoid increasing your debt
This may seem like a no-brainer but it is actually one of the hardest steps for many people to accomplish. Not increasing your debt will help you to get used to living within your means and will make paying off your debt possible. This means if you can’t afford some luxuries, such as that new album or that new outfit, then you should never put them on a credit card. Many people have the mentality that they’ll pay it off later. Oftentimes individuals neglect to pay off their debt and have all sorts of interest and finances charges attached to it. So, by the time 2 months has rolled by you have paid 35 instead of 20 dollars for that album. It doesn’t seem like much but it can really add up.
Step #2: Keep track of your finances
Keeping track of your finances can be achieved by using a simple notebook. It is important to keep track of absolutely everything. Nothing how much you spend in a months time can help you to make a budget and see how much money you really need to get by. Planning how much you’re going to spend on what items may seem tedious, but it can be a great way to be able to pay off all of your debts. If you keep a record of your spending you can easily budget out your finances.
Step #3: Keep track of your debt
It is important to know who you owe money to and how much. If you have one credit card that has a much higher interest rate than others it is important to know this so you can pay it off before the others. Keeping track of your debt will help you pay it off in a number of ways. Some debt has finance fees and most have interest charges added to them. Keeping track of how your debt is increasing when you’re not adding to it will help you find the best way to pay it off. A good rule to follow is that high interest debt should be paid off first. Then you will want to pay off your credit cards with the lowest limits. Credit score is calculated in part by percentage of credit versus percentage of debt, so it is good to have as little debt as possible.