Top Tips For Getting Out Of The Debt Cycle
America is a nation in debt. As of August 2018, the average adult in the USA has about $38,000 of personal debt, excluding mortgages. That figure is made up of credit cards (the average credit holder has not just one, but four cards on the go at any one time), car loans, and student loans, amongst other things.
More than 50 percent of American adults spend more than they earn each month, which means that they get trapped into the vicious cycle of debt, only being able to pay off the minimum payment every month. Hence, the debt continues to increase until, eventually, they end up in a financial mess. Once you get caught in this web, it is tough to get out of it.
However, it is not impossible. Here, we look at just a few of the steps that you can take so that you can get out of the debt cycle and back onto the road to financial freedom in as little time as possible.
Cut down to the bare bones budget
One of the best ways of getting out of debt is to reduce your outgoings. Once you have more money coming into the house than going out, you will be able to pay more off your debts and clear them faster. It sounds pretty simple, but if you have been living the champagne life on a lemonade budget, you will find it hard.
Go through your bank statements with a fine-tooth comb and see where your money goes. These days, many banking apps can categorize your spending to give you an idea. If your money is being blown on eating out or expensive takeouts, consider how you can cut that cost down. Maybe you could look at meal planning and batch cooking to make preparing food easier. If you have a costly gym membership, you could consider canceling that and doing workouts at home instead.
Try debt consolidation methods
Being deep in debt with lots of creditors is stressful, so consolidating your debt into one monthly payment can be useful for freeing yourself from debt. The DTSS group is an excellent place to find out more, and it will show you that it is neither a fraud nor a scam.
Sell things that you don’t need
If you are looking for a quick way to get hold of some cash to pay off debts, take a look around your house. The majority of us have stuff lying around that we no longer want or need, so what better way of drumming up some extra cash but to sell it? There are plenty of ways of going about it – Craigslist, good old fashioned yard or garage sales, or online auction sites such as eBay. Use the money that you raise to pay a chunk off your debts – it is a great way to declutter.
There are various things that you can do to start digging your way out of debt. These are just a few!