Did you know 8 out of 10 Americans have debt? According to a recent study published by Pew Trusts, the most common type of debt stems from mortgages but that’s not the only thing people can struggle to pay back. There are credit cards, student loans, car loans and so many other things that can all add up to a decent size. With that said, how well do you manage your debt? Read on to learn three simple ways to make managing debt easier to get on the path of eliminating debt completely.
- Know How Much You Owe
Time for a reality check! Make a list of all your debts and write down how much you owe and to who you owe it to. From there, make sure you note the monthly payment amount and each due date. Once you’ve gotten everything in front of you, you can clearly see how much you need to pay. Seeing everything in plain sight will give you the motivation to buckle down and get smarter with your money. Transfer your list to a calendar and place it on your refrigerator to serve as a constant reminder of when everything is due. On top of that, add reminders into your phone so you reduce the chance of missing a payment.
- Cut Back On Spending
In order to live debt-free, you’ll need to cut back on daily spending because you will want to put as much money as you can towards your debt. Think about the things you need and not the things you want. For instance, if you order take-out once a week, consider cutting that back to once a month. If you buy a cup of coffee each morning before work, consider making it yourself. These little conveniences will add up to a great amount of money that can be applied to debt you owe.
- Consider Consolidation
Like mentioned earlier, you may have many different forms of debts and juggling all of the payment due dates can be stressful. Instead, you could benefit from a debt consolidation loan that could lower your interest rate on many accounts by lumping them together into one single loan. For instance, you could apply for a debt consolidation loan from Broadstar Financial Group that would take your existing debt and put them into one easy-to-manage loan.
When it comes to eliminating debt, you need to be proactive with the way you manage your money. By trying the suggestions above, you could be on the path to financial freedom!