GET OUT OF DEBT!

We all have it. It’s that weight on your shoulders that you carry around everyday. It’s what keeps you up some nights, unable to sleep. It’s the reason for your anxiety when you visit the mailbox. It’s the dreaded D-word that everyone is embarrassed to speak about it. Have you guessed what it is yet? Ok, time’s up…it’s DEBT!

You have plans for your future. You want to buy a house, you want to go on vacation, you want to finally be free of bills. Maybe you’ve tried everything on the market to get you out of debt. You paid for Dave Ramsey’s books, you joined internet programs. Maybe you even joined a support group. Whatever it is you did, it hasn’t worked which is how you found yourself here. 

I am one of you. Debt in the form of credit cards, student loans, car payments, you name it and we probably have it. And like most debt, it was manageable for a time. Then it became overwhelming and now you can’t seem to stop accumulating more of it.

I want to start off by saying that it’s not entirely your fault. We (my generation) were never taught about finances in school or at home. They were considered private matters. I had no idea that student loans were made to be paid back with interest or that my first credit card would basically be handed to me as long as I knew my Social Security Number. I didn’t realize that you needed to make more money than you spent. I may sound naive here but at 18 I honestly had no idea about any of it. My parents paid for my apartment, phone, school books and credit cards. I just had one responsibility and that was doing well in college because my generation was told that as long as you got a college degree you will be set for life. Ha. Ha. Ha.

Well guys, I am no longer in college so my excuses for why I am making the same mistakes as I did at 18 are no longer being accepted. Now that I am married and have children, I have more people depending on me and heavier responsibilities. So I did what most people do in this situation; I bought the books, I tried to follow the rules, I somehow ended up with more debt. I couldn’t figure out where my money was going or how I was living paycheck to paycheck suddenly. So I decided to do things my own way. I threw out those financial freedom books, stopped reading other people’s advice and finally got a grip on MY situation.

I am no financial expert but my Mother is. I needed to do something fast and drastic and getting a bit of (free) financial advice from someone with first hand experience in the matter was the best motivation for me to start getting out of debt. So I’m sharing that advice with you today because believe me…these tips work if you work them.

1. Face The FactsYou need to be honest with yourself, your partner and even family. You will need to swallow any pride you had and be upfront regarding your financial situation. I know that privacy is a huge deal to people, especially in the technological age, but allowing people to think you can continue doing what you were doing before is just irresponsible on your part. For instance, if you take a family vacation every year that costs you $2,000.00 but you know you a) shouldn’t and b) can’t afford it, then you don’t do it and tell whoever you need to tell the honest reason why. There’s nothing shameful about being responsible with your money. There’s nothing wrong with being honest about your future plans and one of them being getting out of debt and not accumulating more. So don’t be afraid to face the facts. 

2.  Take InventoryWrite down all of your balances, your monthly payments and dates that these bills are due. Figuring out what you owe and where you owe it will allow you to see things in an organized way. It will also allow you to set up short term goals that will be achievable rather than unattainable.

3. Do Some MaintenanceDetermine what you are spending your money on the most, other than your debt. Are you eating out a lot? Do you have memberships? Anything you can do without, get rid of. Personally, we had memberships, we were eating out at least three times a week and we had a ton of activities we would pay for during the weekends. STOP DOING IT! I know it seems like you will have nothing left, especially with children but, that’s not true. You are just choosing different options now. Instead of eating out, meal plan and meal prep. Having three meals a day from home will save you hundreds a month. Instead of joining a gym, work out at home. Switch it up! Do some yoga (YouTube has so many options!), try running or walking outside, team up with someone and do some workouts at their place to get out of your house. Check your town’s facebook and website for free activities for kids. Join the library. Visit friends and family more. Switching things up with allow you and your kids to still be entertained while saving you and your family money.

4. Get Rid Of ConvenienceIn a generation run by technology, we have been fortunate to have anything and everything whenever we want it. That’s part of the debt problem. Delete all of your credit card apps and shopping apps from your phone. The great thing about Amazon is that it’s fast and easy to order whatever you need and have it delivered right to your door. The bad thing about Amazon is that it’s fast and east to order whatever you need and have it delivered right to your door. Being able to just shop through your phone has contributed to our credit card debt- no doubt. Delete them all. And just because Target is down the street from you doesn’t make it the place to shop for all your needs. Driving a bit further to the nearest Walmart will save you money on the products you need. Razors, food and household products are usually cheaper at Walmart. If you don’t have a Walmart, do some price comparisons to find your cheaper store and go there when you need your household staples. If that means going to multiple stores, then you go to multiple stores. Same with gas stations, laundromats, bakeries, clothing stores, etc…And the MOST IMPORTANT THING: GET RID OF CREDIT CARDS! Give them to someone you trust. Lock them in a safe. Cut them up! Whatever you need to do to make sure you do not have easy access to them…do! This will change EVERYTHING.

5. Cash Is KingIf you do not have the cash in your account to purchase something, you don’t purchase it. Sounds easy, right? Well as long as those credit cards are around, it’s the hardest advice to stick to. So GET RID OF THE CREDIT CARDS.

6. Shop AroundIf you can save some money by shopping elsewhere, as I previously mentioned, then go all out. This can be in regards to car insurance, health insurance, electric companies, cable companies (I suggest no cable whatsoever, which I have a blog about), and any other monthly expenses you HAVE to pay for. But it doesn’t end there…if you can shop second hand…do that! Your clothes, your kid’s clothes, children’s toys, furniture, cars, basically anything. As long as what you are purchasing is clean and in good condition, why not thrift shop? Once again, there is nothing else wrong with saving money. Buy used and save the difference.

7. Side HustlesSelling what you don’t use is a great way to earn extra money toward paying off bills. Selling clothing on eBay or toys that are no longer played with on Facebook Marketplace is a great way to earn some extra money. If you’re good with your hands, finding free furniture that you restore and sell is the greatest way to accomplish this goal. The possibilities for side hustles are endless. Of course if your job just isn’t paying you enough, finding a second job or a higher paying employer is the way to go to earn the money you need to be free of debt.

I could probably go on and on but these 7 tips can be started right now and help you get out of debt faster. And remember…THIS IS TEMPORARY! You will not need to live without all of your luxuries forever. But for the time being, this change will allow you to achieve the bigger goal of not having any debt at all and obtaining financial freedom once and for all! Good luck and if you have any other tips to share, comment below or email me!