If you want to start your journey toward a debt free life but are wondering where to get the extra money from, here are some of the simplest ways to reduce debt.
(And please note that simple does NOT mean easy. These are very simple strategies to grasp but sacrifice and determination are required. Remember, if being debt free was easy then everyone would be doing it!)
Kill a Habit
Your first option is to kill one of your current money sucking habits and then transfer that money over to debt repayment.
Some popular contenders are:
- Smoking
- Excessive Shopping
- Take Out
- Overspending on Groceries
Quitting a habit isn’t easy and it’s not fun – at first. But after a little awhile you adjust and can enjoy watching your debt balance drop. (Which is definitely fun!)
Reduce Some of Your Bills
If you haven’t done a bill audit in a while it’s very possible that you’re overpaying on some of your common bills. By making a phone call to your internet provider, insurance agent, and Cable Company you may be able to lower your bills by $100 or more a month without affecting the current services you’re getting.
If you have a balance on your credit cards you should also call the credit card company to see if you can get your interest rate lowered.
It never hurts to pick up the phone and see if you can get your bills lowered. The worst you’ll be told is no and in the best case scenario you’ll be freeing up a couple hundred extra dollars per month to go toward your debt.
Work Extra Hours
If you’ve cut every possible dollar you can cut then it’s time to earn extra money. Put your focus on increasing the money you bring in.
You have three main options to do this:
- Work more hours
- Get a better paying job
- Start a side business
There are a definite set of pros and cons with each option. You should choose whichever option best suits your individual situation.
There’s No Magic Pill to Debt Pay-Off
Unfortunately there’s no magic pill when it comes to paying down debt. You have to be determined and willing to work hard in order to make these types of changes to your life. While the concept of paying off debt (and why you should) are easy to grasp the debt pay-off journey may be long and hard but also completely rewarding.