Dealing with debt can feel like a hopeless situation.
You try your best to make your payments, but interest charges eat up all your progress. The next month, you’re back to square one.
How to Get Out of Debt: 13 Expert-Backed Steps for Success
Start by making a list of all of your monthly expenditures, including healthcare, utilities, insurance, childcare, and housing costs. Don’t forget to include debt payments, too.
Next, add up all your monthly income and subtract your expenses.
She explained that identifying and eliminating spending triggers can help. “Everyone has a trigger, and it’s important to face it to avoid it and prevent it from destroying your financial gains.”
“Side gigs, such as baking, photography, dog walking, babysitting, ride-sharing, or turning unoccupied space in your home into a rental, can all generate extra income.”
Focus on accomplishing one goal at a time. You’ll make progress quicker, and progress leads to persistence. For instance, work on getting rid of your high-interest credit card debt before moving on to your federal student loans.
“We recommend breaking down your finances into micro-goals that allow you to focus on 30-60 day sprints that will build-up to the big goal,” Walsh said.
If you need an extra mental push, try the debt snowball method instead. This involves using your extra funds to pay down your smallest debt first while paying the minimums on the rest.