You know that making a budget helps but for whatever reason things still seem so bleak financially.
Getting out of debt isn’t easy.
I’m assuming that if you are reading this post, it’s because you have accumulated a decent amount of debt and are wondering how to get out of it.
Acknowledging that you need help is a step in the right direction.
Today I have rounded up some tips from personal finance writers to help you gain more insight and get going in the right direction in an effort to get out of debt.
How to Get Out of Debt: 7 Personal Finance Writers Weigh In
Find a supportive community! Whether that’s online or in-person, it’s vital to find people you can connect and relate to while you’re paying off debt. Especially if certain family members or friends don’t understand your zeal for wanting to be debt-free, you’ll need to find an encouraging group of people who can help you through the tough times. And trust me, there will be plenty of tough times, and moments when you want to quit. Having that support will ensure you keep going, and can finally reach your goal!
Carrie Smith is the founder and writer of CarefulCents.com . She also contributes to the Huffington Post.
If you’re looking to get out of debt, don’t forget the obvious. The best laid plans will go astray if you don’t stop borrowing. Do that while paying off your debts on time and you will get out of debt (eventually). Of course, if you want to get out of debt faster (and who doesn’t?), chuck as much extra money to your target debt as you can until it’s gone, then move on to the next one. Check out my book called 101 Ways to Make Extra Money in Your Spare Time if you need ideas to earn extra money on the side. But you’ve got to quit borrowing. No excuses. Make it happen.
Here are my 3 tips:
2. Don’t leave certain debts out of your repayment plan because you think they’re “good debt.” Yes, student loans do need to be paid off too.
3. Be patient. You didn’t get into debt overnight, so don’t get frustrated when you don’t get out of it overnight either.
Patrice C. Washington is the author of Real Money Answers for Every Woman: How to Win the Money Game with or Without a Man
Don’t pay the minimum payment. The minimum payment is designed, in part, to anchor you to a payment that maximizes the profit for the credit card companies and takes you a long time to pay off. Instead, pay as much as you can towards the debt. Make the payments automatic every month so that you don’t have to think about it or notice the money missing from your bank account. Every time you get a paycheck deposited into your account, that payment should automatically go to the credit card payment. That way, you can get the maximum payment off without making a mistake.
Another approach is anti-motivation, which I write about here.
My top tip to get out of debt is to find a way to make money on the side. Even with just a few extra hours each week, you could find a way to put all (or most) towards your debt. This way you could trick your brain into not missing it as much. This is how I paid off three degrees and $40,000 in student loans right when I turned 24.
Michelle website owner and writer of MakingSenseofCents.com and has been featured in a number of publications such as The Consumerist, The Wall Street Journal, Yahoo Finance, and MSN Money.
If you want a permanent solution to debt then you must recognize that debt is not a financial problem. Hard to believe, but true.
Debt is actually a personal problem masquerading in financial clothing. That is why it is so difficult to solve. Most people look in the wrong place. They look outward for financial solutions rather than inward to the true source of the problem.
Your debt results from personal life habits and attitudes that cause you to spend more than you earn. It is just that simple. Until you change the personal habits and attitudes causing the debt you will just repeat the cycle over and over again. You can implement all the tips in this article and make progress, but ultimately you must solve the root cause to rid yourself of debt problems forever. You must adopt new habits and attitudes that result in spending less than you earn so that you save money rather than run up debt.
When you treat the financial problem by paying off your balances you treat the symptom. When you focus on the personal problem by changing your life habits you solve the cause creating a permanent solution.
Todd R. Tresidder, Founder & Money Coach at FinancialMentor.com
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