Do you think you are ready to get yourself out of debt? Well, in order to be effective you will need a solid plan of action. Getting out of debt is a tough feat with the cost of living constantly rising. Bills seem endless while income seems to be shrinking. There are several ways to eliminate debt such as living below your means, cutting back, taking a second job, asking for overtime and etc.
Living below your means
Living below your means enables you to save money while getting the same enjoyment out of life. When you choose to live below your means you will see what you actually need in your life. If you have multiple subscriptions to something and you barely use it then you are wasting money. A good way to see how much you are spending is multiply your monthly expense by 12. Living below means does not mean your lifestyle will change drastically you just have to become creative when spending.
Cutting back is the easiest way to create instant savings. When you create the instant savings use it to pay down debt. If you have recurring debt then it should be your next focus. Debts which are in collections should be your last target. Depending on the type of debt it can fall off your credit report with time. Cutting back frees up disposable income so if you feel the urge to spend make sure it is paid in full. Rewarding yourself is very important when sticking to a budget or debt elimination plan.
Taking a second job
If you have a bill you want to pay off before it accumulates a lot of interest you should take a second job. When you have multiple streams of debt you should have multiple streams of income. Be careful when taking a second because you risk your health with over-exhaustion. Be sure to take a second job which is light and work for a specific time period (paying off the bill).
Asking for overtime
If you want to earn extra income without adding to your commuting costs then you can request overtime. When working overtime you will make a good impression with your bosses. Your colleagues may not like, but if they are not paying your bills then they have no say.
Debt elimination should be taken seriously. It is important not deviate because your efforts can easily become un-done. When creating a debt elimination plan be sure to seek professional advice if you have questions. Good luck!