Planning to pay off debt but don’t know how? Here’s how to start

Date Posted: March 7, 2022
By: Maggie Marques

Are you desiring to pay off your debt? The struggle may be real, but it doesn’t have to be impossible. If you are like many Americans who want to be free from debt but don’t know where and how to start, here’re some tips that will help you begin your journey to being debt-free and experience financial freedom.

First, to pay off your debt you need to list down your actual budget. Not the imagined or the ideal but what is current and factual. By writing it down, you will see how much you are earning, how much you are spending, and where you can stop spending and move it to debt repayment. It doesn’t have to be a significant amount, but the important thing is that you set aside something to repay your debts.

Second, make a list of your debts from the biggest to the smallest and include the balance and interest rates. Which debt to pay off first will depend on your current ability to pay. It would be ideal for making it a goal to pay off the most considerable debt first while paying the minimum of the other obligations. You must continue paying the minimum on your other debts, and the extra cash goes to your most expensive debts. Think about it this way, the your bigger your debts the bigger
interest and fees. Also remember to pay off the others at the same time. If your situation does not allow you to pay off your most significant debt, pay off the smallest. The important thing is that you start paying and erasing debts.

Third, to pay off your debt faster stop using your credit cards. As you are trying to regain your footing financially, it doesn’t mean you have to cut up all your cards, as you will still need these for your credit rating. But you need to stop using them, if possible until you can take back control of your finances.

Lastly, you need to spend less and earn more. Looking for a side hustle will help you pay off debts, and selling stuff around the house that isn’t used can be a way to make more. They may be gifts and other items lying around that you can dispose of and add to your debt repayment.

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