Sometimes, no matter how much planning ahead you do or how prepared you are, you run into expenses that you just cannot avoid. A car accident, illness, or a natural disaster taking a toll on your home are only a couple examples of something that could require you to spend a good deal of money that you hadn’t anticipated. It’s in situations like these that we often find ourselves spiraling into debt without having a better option that allows us to avoid it. Here are a few tips to help you escape that unwanted pool of debt that you’ve found yourself swimming in.
Don’t Settle for the Minimum
As with most things in life, you should approach tackling your debt with a ‘go big or go home’ mindset. If you only pay the minimum required, every month then you’ll be in debt forever. It’s important to remember that you accumulate interest rather quickly on credit cards, and paying the bare minimum is most likely barely covering that. The more you’re able to pay the faster your debt will be paid off.
The Bare Necessities
You need to create, and stick to, a bare minimum budget. The money that you may spend on a fancy coffee or a restaurant on a night you don’t want to cook could turn into a stepping stone to helping you climb out of the debt dungeon. Grab a calculator and figure out a ballpark of how much money gets spent frivolously on things that you don’t really need. I think that number will surprise you. Instead of blowing it on something you won’t remember in a day or two, use it to get yourself out of debt more quickly.
Get a Little Something on the Side
Job wise, that is. If you can make a few extra dollars by babysitting, dog walking, or picking up a part-time job you’ll soon see that those extra bucks are going to go a long way towards shrinking that debt. If more work sounds like the last thing you want or need, remind yourself that it isn’t forever and that the future you will be grateful when their awesome credit score gets them approved for that home.
There’s no foolproof way to avoid debt. Even the most prepared person can find themselves wrapped up in it at some point in their lives. Thankfully, just because you’re in debt now doesn’t mean that you have to be forever. Take the necessary steps now so that you’ll be free and clear for all the big dreams you want to accomplish in the future. Also, head over to Debthelper.com. The great people there will be able to give you more tips and tricks on getting out of debt and help you through it every step of the way.