Friday, March 3: Pay Off High-Interest Debt
- With planning, discipline, patience, and maybe some outside help, almost anyone can reduce their debts and start to accumulate wealth. Find places to cut your spending so that you can pay down your debts faster and find places to trim your expenses.
Debts that accrue interest over time can deal a major blow to your savings. But with planning, discipline, patience, and maybe some outside help, almost anyone can reduce their debts and start to accumulate wealth.
Although we’re coming to the end of America Saves Week, there are still actions you can take this week to improve your financial picture. Find places to cut your spending so that you can pay down your debts faster and find places to trim your expenses. About a month ago, I conducted a private masterclass called DEATH TO DEBT. In this class, I showed the participants the most effective way to pay off their high-interest debt and begin building wealth. You can view that class here. For now, here are five effective way’s you can begin paying off high-interest debt.
Create a budget
Establish a budget that includes your monthly income and expenses. Then take a look at those categories and see where you can cut costs.
Stop your credit card spending
If you really want to stop accumulating debt, then stop your credit card spending. Take those credit cards out of your wallet and leave them at home. Better still, cut them to pieces. I know that’s drastic, but sometimes we have to take drastic measures to obtain financial freedom. Stop spending with those credit cards until you have your finances under control.
Put work bonuses toward your debt
Do you receive a bonus from your job? If so, throw it at your debt instead of using it as an opportunity to splurge. It is more important to fix your finances than to own the latest whatever.
Change your habits
I’m willing to bet, if you look at how you spend your money each day, week or month, you will see that your daily routines and habits got you into this mess. Spend a little time reflecting on those purchases and see what you can either cut back on or do without. Instead of that hight priced latte every day, make your own at home. How about brown bagging your lunch instead if eating out each day. Watch how much money you will save and how much you can throw toward that debt.
Earn extra income
Turn that side hustle into a lucrative business. What skills do you have that you can turn into some extra cash? My side hustle is selling and doing makeup. I also do graphics for a few of my friends. You would be surprised how much your talents can earn you.
What other tips can you give for paying off debt? Comment below and let me know. I’m always looking for more tips and trick to add to my arsenal.