To get out of debt, you need a strong will power my friend. I have been under a huge debt and credit and getting out of them was tricky but not tough. All it needed was some will power, short-term planning and execution so that I can start budgeting for myself.
I am sharing some of the tips which helped me a lot on how to get rid of your debt as soon as possible:
- Exclude Extra And Unnecessary Expenses!
I excluded every single extra and unnecessary expense in my budget. I even excluded having an Uber from my budget and started using the Bus. The point is, the only things that should be in the budget are accommodation, food and utility bills.
2. PLEASE PLEASE PLEASE DONT INVEST FOR SOME TIME!
This was one of the most crucial steps. I kept investing and thought that I could pay off my debt with it but it ultimately increased it. I even invested in some stupid ideas that were proposed by my friends.
Then I realized I should change my paradigm and stop investing until I lose some debt-weight off my shoulders and get a hold of my budget.
3. Screw the Credit Shopping!
First of all, stop buying unnecessary stuff. And if you want to have some, DON’T BUY IT ON CREDIT! Don’t even buy the necessary stuff on credit, I would recommend it. Cause technically, credit shopping is increasing our debt. Instead, save and then pay upfront. It is way better.
4. Find Some Side Income!
Side income is quite helpful. Getting an extra income for working for some time like freelance or remote working is a great step.
I started giving tuitions to kids in my neighborhood on weekends and write content for clients on Fiverr and Upwork. It helped me in saving dollars through which I started to pay off my debt gradually and then after paying proportions of my debt, I started to save.
So these were some tips that will surely help you to get out of your debt but as I said earlier, you won't be able to work it out if you’re not planning and executing while keeping your will power consistently.
If you really want to learn more about how to eliminate your debt, there is this article which I find quite helpful and informative titled as Getting Out of Debt so you can read it as well.
I hope this helps :)