Let’s talk about tackling that debt beast. Now, paying off debt isn’t just about throwing some cash at it and hoping for the best. Nope, it’s about having a game plan to not only pay it off but to stay out of debt for good. Trust me, I’ve been there.
I’m gonna spill all the beans on how I kissed goodbye to $13,000 in credit card debt in just 12 months. And hey, that’s not all. I’ve waved goodbye to a total of $70,000 in debt over my lifetime. Stick around, and I’ll spill all my secrets on how you can do it too.
First things first, forget about just throwing your spare change at your debt. Nope, it’s all about budgeting and squeezing every last penny out of your expenses to pay off that debt quicker. Let’s break it down.
Most folks live paycheck to paycheck, spending every dime they earn. But to really make a dent in your debt, you gotta get serious about budgeting. Write this down – shelter, utilities, groceries, transportation, healthcare, and fun. These are your must-pay bills. But don’t stop there. Cut back on your shelter costs to just 33% of your income, keep utilities in check, and limit food expenses to $200-$250 per person by cooking at home.
Now, about those extra bucks you find. Time for a clear-out. Sell anything and everything you don’t need, from sneakers to gaming consoles. Trust me, it’ll hurt a little, but it’s worth it. Use that cash to chip away at your debt.
And hey, don’t just rely on your day job to bring in the dough. Get hustling! Even a side gig paying $15 per hour for a few hours a day can beef up your debt payments by $1,500 a month. That’s some serious progress right there.
Now, onto the nitty-gritty of paying off debt. There are two methods – avalanche and snowball. Avalanche tackles high-interest debt first, while snowball starts with the smallest balance. I prefer snowball because it builds momentum fast, even if it’s not the most mathematically efficient.
And what happens when you’re finally debt-free? Don’t make the same mistake I did by leaving credit cards open. Nope, close ’em down and stick to cash or debit. It’s a surefire way to stay out of debt for good.
So there you have it, folks. My tried-and-tested roadmap to debt freedom. Smash that like button, drop a comment with your plan of attack, and let’s crush that debt together.