5 Important Things You Can Do When You’re Buried in Debt

Are you buried in debt? You’re not alone.

A surprising 25% of Americans say they’re troubled over finances, all the time. Trying to keep up with current bills, while paying off old bills, can make it feel like you’re fighting a losing battle. However, it doesn’t have to be this way forever.

If you’re looking to climb your way out of debt for good, we can help. Read on to learn how to get rid of debt once and for all.

1. Face Your Debt

If you’re wondering how to get out of debt with no money, and bad credit, it all starts with your mindset. First, if you’re buried in debt you need to get honest about your situation.

Living in denial about how much debt you have, will make it impossible for you to make any real changes. Instead, no matter how scary it is, you need to sit down and create a list of all your debts.

Next, write down every expense your household has. Finally, list any sources of income you have currently, not ones you’re counting on in the future.

Create an Effective Budget

Once you have everything written down, you can begin to create an effective budget. After you have a budget that covers all of your essential needs, you can start to plan how you will pay off the creditors. We also suggest you reach out to a debt advisor to learn more about debt consolidation.

2. Create an Envelope System

It’s easy to overspend when you pay for everything with a bank card or credit card. That’s why we suggest using an envelope system to help make the money you’re spending more real.

You’ll need to get several envelopes and label what expense they’ll cover. For instance, you can have an envelope for your gas budget, your grocery budget, and your spending money. Now, it’ll be much easier to keep track of your spending.

3. Pay Bills on Time

Late payments can become the norm when you’re dealing with a large amount of debt. You’re used to having to juggle things around, so you can still afford to pay the power bill, rent, and other expenses.

However, late payments are a bad habit to fall into because they usually come with late fees. This is especially true when you’re dealing with late payments from credit card companies.

Instead of trying to juggle things around, use the calendar in your smartphone, or computer, to set payment alerts. If you do miss a payment, pay it off as soon as possible. The sooner you make your payments, the less likely it’ll be for a late payment to reach the credit bureau.

4. Start a Side Hustle

If your expenses outweigh your income, you’re likely to continue growing your debt, instead of getting rid of it. Instead of waiting for things to get better, go ahead and find something you can do on the side to earn more money.

Almost everyone has some type of skill they can monetize. Whether you’re great at yard work, cleaning houses, or even babysitting, every little bit helps.

5. Start Couponing

You know couponing can save you money, but are you actively doing it? Before you make any type of purchase, double-check to see if there are any coupons available. It’s amazing how much you can save just by researching coupons that will apply to the products you need.

However, be extra careful to not use coupons that you don’t need. For instance, if there’s a wonderful deal for a product you rarely use, its best to steer clear. Instead, only use coupons for items that you currently need and use.

Stop Living Buried in Debt

Now you know 5 powerful ways to stop living buried in debt. What way do you think you’ll try first? Will you be creating an envelope system to track your payments? Or are you ready to start couponing to lower your expenses?

Start taking actions today, no matter how small they may be, so you can have the debt-free life you deserve. For more ways to have the best life possible, check out the rest of this site.