Over the last 5 years, I have been working hard to become debt-free. But it just didn't seem hard enough. So I resolved this summer to kick it into high-gear and do away with my debt before the clock strikes 12 on New Year's Day. It's been hard, but in less than 10 weeks, all my debts will be forgiven and PAID IN FULL!!!
Here are a few tips that saw me through the highs and lows of debt repayment.
1. Double Up on the Snowball: The snowball method is a popular approach to paying off debt quickly. Structuring a monthly payment plan for your debt, while paying a little more to one particular debt until it paid off is a great idea. However, try making a commitment to double the amount of extra monies you are putting towards that highlighted bill. For instance, if you are putting an additional $20 on a bill after paying the minimum, increase that to $40. This can significantly decrease your debt by weeks, if not months.
2. Freeze Spending: Make a list of everything that you spend money on every month. This list should include expenses and miscellaneous items. Review the list with a red pen and start crossing out the things that are not a necessity with the exception of one-or two non-negotibles. When all was said and done, I was spending over $200 a month in extras that I have learned to live without. And while I thought I couldn't live without Starbucks, I have learned to enjoy making my own coffee and making Starbucks a treat saved for paydays.
3. Get Inspired to Act: Paying debt off is not for the faint of heart, so gaining insight from resources can help you to stay on track. Bookmark some favourite websites or blogs on finances. You can also buy some books on finances, though I prefer to borrow them from my local library to keep my money in my pocket. The savvy website, The Finance Bar, is an awesome site where I get motivation to stay focus and keep my eye on the prize. I also love The Smart Cookies Guide to Making More Dough and Getting Out of Debt. This book has been in my collection for a few years, and is my annual financial read each year before I start budgeting for the upcoming year.
With just a few months left, it is becoming a little easier to do what seems unbearable. But no pain, no gain right? I'll be sure to keep you posted on my goal. Please feel free to share your tips and tricks with me as well.
Have a fab weekend beauties,