We all know that getting out of debt is not something that is easy to do. Staying out of debt may prove to be even more challenging in the long run. But with the right strategies and systems in place, you can equip yourself with the skills and determination that is needed to help you in getting out of debt and staying there. Here are some of our top tips and tricks for getting out of debt and staying out of debt.
Adjust Your Mindset and Don’t Cave Into Panic and Fear
Our first tip isn’t one that focuses on math, numbers or the nitty-gritty financial details that many people working on getting out of debt may be looking for. Instead, our first tip is to begin with your mindset. A lot of people find the state of being in debt to be incredibly panic-inducing. In many cases, this kind of financial anxiety stems from urgent material needs. Some people may be worried about providing for their family members and loved ones. Others may be looking to recover from issues related to their job, such as workers compensation problems. However, in most cases, it is quite common to feel as though you are all alone as you are getting out of debt. But you’re not alone. In fact, were you aware that it’s estimated that nearly 87% of families are in debt? By first adjusting your mindset, you can begin to make progress toward improvement.
Many of our ideas about money are ingrained in our minds at a young age. But in many cases, these kinds of ideas don’t serve us as we progress onward into adulthood. Try to adjust your attitudes about money by learning more about the mental and psychological aspects of money, and debt. While this may seem like the last thing you need to do when getting out of debt, it can really help to provide a larger bird’s eye view of your situation. This way, once you do delve into the specifics you can do so within the context of a greater vision for your financial well being.
Set a Budget and Stick to It
Anyone in debt should look to pay down their debts, of course. But they should also look to build a system that gives them an objective view of their spending habits each and every month. After all, when getting out of debt it’s helpful to break down some of the ways in which you got yourself into debt in the first place. It’s highly likely that your debt is manageable, and that the cause of it can be traced back to the fact that you failed to budget correctly. Even though this fact may be a tough pill to swallow for some people, the sooner you accept it the sooner you can get to work on making your situation better and getting out of debt.
If you’ve never made a budget before, the good news is that there are all sorts of online tools that make the process simple and streamlined. You can download software solutions that will allow you to set thresholds, categorize your spending, and track bills in real-time. This kind of overview can prove to be incredibly helpful in tracing your progress as you continue your journey of getting out of debt once and for all.
Furthermore, you may also be able to make use of your bank’s online system to set up a budget. Many banks and credit unions have comprehensive budgeting tools that are free of charge to customers. If you aren’t sure about the availability of these kinds of solutions, all you have to do is pick up the phone and get in touch with someone who works at the bank of your choice. Most bankers are happy to see their customers and account holders taking the steps to inform themselves and reduce their debt. Once again it’s important to remember that if you’re getting out of debt, you’re certainly not the only one!
Look for Great Deals on Major Purchases
We all know that major purchases can often make the process of getting out of debt that much more complicated. While it’s usually a good idea to avoid any major purchases that you can while getting out of debt, some purchases are impossible to avoid. For example, what if you need a new car in order to get to and from your place of work? That’s not exactly an expense that you can just remove from your life altogether. But in this example, you could do your best to search for the best car deals that allow you to make payments while also putting money towards paying down your debts.
Cut Out Excess Spending and Unnecessary Purchases
Similar to your budget that was talked about earlier, you should work to cut out any forms of unnecessary spending when you are getting out of debt. In many cases, getting out of debt hinges on changing your personal habits both on a day to day basis and over the course of a longer frame of time. When it comes to spending, you will soon find that controlling your urges will do wonders to not only get you out of debt, but it will also help you make more informed decisions in other areas of your financial life as well.
For example, changing your spending habits on something as seemingly innocuous as a daily latte or bagel can transfer into other areas. Maybe that one change will inspire you to weigh your options when finding the right workers compensation lawyer. Perhaps the skill of impulse control will allow you to cut spending in other areas of your life as well. As with most aspects of your financial life, making just one small change for the better can have incredibly compounding positive effects over time.
Set Aside Money for Yourself Each and Every Month
It’s hard to make sure that you pay yourself first when your paycheck lands in your bank account. But this is a key element to anyone who has a hope of getting out of debt and staying out of debt for the rest of their lives. It doesn’t matter whether you’re looking at the money you save or the money you’re spending, there’s no denying the fact that are nearly infinite options out there for anyone who is not disciplined with their money. By setting money aside for yourself each month, you keep yourself on track and minimize the likelihood of poor spending decisions. After all, most good habits rely on your ability to put temptations out of reach!
Are you planning on making a move to a new city or within your current city? Expenses like these serve as one prime example that demonstrate the value of setting money aside for yourself each month. If you are moving, then having the money on hand to hire cheap movers can lead to even greater financial prosperity throughout the moving process. Hiring professional movers that are affordable may allow you to keep the money you may have otherwise spent on pricier services. The cascade of positive financial momentum begins with making small, practical choices such as paying yourself first each and every time a paycheck comes your way!
If you are lost on how to go about setting aside money for yourself each month, the good news is that there are several technological solutions that make this a cinch. For instance, most mobile banking apps allow you to automatically send a certain amount to a separate savings account each month. You can also set these automated funds to move on a bi-weekly or weekly schedule in some cases. Many people find that an automated process helps them avoid making poor decisions with the money that comes into their bank account.
Negotiate For Lower Interest Rates
The hard facts of debt can be quite overwhelming to some people. If you happen to be in debt with a credit card company (or multiple credit card companies) it is always worth it to attempt negotiating your interest rate. Many credit card companies just want to be sure that they are paid each and every month. If you are not able to pay the money that is owed at the original interest rate, then you should let your credit card company know this. There are many forms of hardship that they may take into account when making a decision to reduce your interest rates. Even if you don’t end up with a success story, it never hurts to ask.
If you have ever needed a workers compensation attorney or a similar legal service to stand by your side, then you know how important it can be to learn how to negotiate. Working with credit card companies to reach a fair rate is a skill that will serve you for many years to come. By doing your part to reduce your rates, you will find that getting out of debt becomes much less complicated.
Consider Using Bail Bondsman
If you are in legal trouble, then you may want to consider using an affordable bondsman. Sometimes these aren’t always easy to find. But in any case, they will stand by your side as you go through the process of reducing your debts and settling your legal troubles.
Bail bond agents are usually willing to discuss rates and payment plans with their clients. It’s always a good idea to search for agents who are transparent about their pricing structure. Again, don’t be afraid to ask questions up front. It’s far better to agree on a fair arrangement from the start than to get wrapped up in a situation that ends up causing you even more financial stress.
Not sure how to find a trustworthy bail bond agency in your area? Try reading some reviews online. In many cases, positive reviews serve to highlight an agency’s reputation both in their local community and in the industry at large. Looking at these kinds of details can ensure that you find the right help on your journey of getting out of debt.
Look for Subscriptions and Monthly Fees You Can Cut
We live in a world of subscriptions. Sure, there is certainly nothing wrong with having that Netflix account for some nightly entertainment, but at a certain point you need to take a close look at all the subscriptions you have in your life. Do you have a gym membership that you rarely use, but it’s still charging you month after month? Now’s the time to cancel it. Do you have multiple streaming service subscriptions set up, but find that you only end up using one of them? Cut the bill. Disconnecting any unnecessary subscription fees from your life can really add up over time. While each individual charge may seem minor, the compounding effects of them can actually be quite significant when you’re trying to get out of debt. Look at your monthly bank statements and credit card statements to identify those subscription fees and get rid of them as soon as possible!
Consult With Legal Assistance
Finally, it’s important to remember that some instances of debt are a bit more serious. In some cases where debts become too extreme for you to handle on your own, you may want to consider consulting with legal assistance. A bankruptcy attorney can help you understand your options as you navigate the legal and financial considerations that are in play in a case of extreme debt. In many cases, a bankruptcy attorney can work to help you choose a course of action that will contribute to you getting out of debt while also minimizing the damages to your home and personal life.
As you can see from this list, getting out of debt is certainly not always such an easy process. But when you apply these tips and tricks over time, you will find that you are well on your way towards getting out of debt and staying out of debt. We wish you all the luck on your journey towards financial freedom!