Be Free Tomorrow By Following this Get Out of Debt Plan TodayMoney 4 You Payday Loans
So many Americans struggle with some kind of debt. Whether it’s student loans, medical bills, or credit cards, if you have debt, the first thing to know is that you are not alone. But just because debt has become commonplace, doesn’t mean one should accept it. Debt is burdensome and can stop you from making investments and doing other things that would improve your life. The good news that there are ways to get out of debt and the following is a look at some solid steps you can take for help getting out of debt:
Be Debt Free With This Get Out of Debt Plan
- Step one: Save $1000. The first step to getting out of debt is to squirrel away a thousand dollars into a savings account. This thousand dollars will serve as an incredibly useful safety net and can serve as a sort of stop gate preventing you from getting further into debt. How? Because the reason people get into debt in the first place is that something happens that requires them to spend money they don’t have, such as an emergency car repair or an unforeseen vet bill. Once you have an emergency $1,000, you can pay for these situations in cash without having to take out extra debt.
- Step two: Create a zero-based budget. This step will help you achieve that $1,000 safety net and it will help you with the next step of paying your debt with the snowball method. A zero-based budget is a budget in which your income minuses all of your expenses is zero. In other words, every dollar your household brings in should be allocated for something. Start by writing down your income (a free budgeting app like EveryDollar can assist with this or you can use old-fashioned spreadsheets) and then write down all of your expenses (rent, insurance, utilities, etc.). The important thing here is that you need every dollar to be assigned.
- Step three: Pay off your debt with the snowball method. The debt snowball method has been shown to be one of the best ways to get out of debt fast. In this method, you organize all of your debts by the amount due (the smallest amount to the largest amount). Then, use your zero-based budget to determine what is the most cash you can put towards your debt bills. Take that amount and, every due date, pay the minimum amount on all bills except for the debt with the lowest amount. For that lowest amount bill, you will throw the bulk of your debt-paying funds towards it until its gone. Once it is gone, you’ll use the amount you were paying on it and apply it to the new smallest amount bill. By following this method, you will slowly plow your way through your debt and enjoy the psychological benefits of seeing each debt being paid off.
You Got This!
Debt is only overwhelming if you let it be. With a get out of debt plan like the above in hand, you will start to see your debt as more manageable and with small steps every day and every month, you will enjoy a tomorrow that is debt free! And if you need help getting that high-interest loan paid off, maybe we can help! Contact Money 4 You Payday Loans today or fill an online application form to learn about our loan options that can help you pay down your debt fast.