4 Secrets to Paying Down Debt

secrets to paying down debt, how to pay down debt

Today I’m sharing 4 secrets to paying down debt with you.

I hate debt.  I really do.  Debt is stupid, but unavoidable.  Most people don’t have $200,000 sitting in their checking account to buy a house.  I know I don’t have $25,000 to even by a car.  So I know when the time comes for J and I to buy our first house we’ll take a loan.  But I won’t be happy.

Right now J and I are getting our debt paid off.  That way when we are ready to buy a house we won’t have too many monthly payments to make.   Paying down debt can be hard.  It’s stressful, it’s not fun and people can lose sight of their end goal.

Here are my 4 secrets to paying down debt and staying out of debt:

SECRET ONE: start with your debt snowball.  

I shared how to do a debt snowball a few weeks ago.  It’s important to get a clear picture of where you currently stand.  Prioritizing your debt will give you focus.

SECRET TWO: have a budget that works.

Creating a budget doesn’t have to take more than 10 minutes.  A budget is vital in getting debt paid off.  You can work on paying down your debt unless you know how much money you need to live off of.

SECRET THREE: stay motivated.

It’s easy to lose sight of your target.  There is a lot going on in your life.  You have bills to pay, work to get done, a family to love on and take care of, laundry to do, and so much more.  You are getting pulled in a thousand different directions everyday.

You need to stay pumped about paying off your debt.  If you don’t know what your end goal is then you will likely get off course of paying down debt.

SECRET FOUR: be creative.

Look for other ways to earn extra money.  Go through your closet and find some nice used clothes to sell on eBay.  Sell old furniture on craigslist.  Do freelance work on the side for a little extra cash.

You could also look for ways to cut your budget.  Get rid of cable and switch to Netflix and Hulu Plus.  Most likely the cost of those 2 won’t be nearly as high as your cable bill.

If you can’t get rid of satellite because you need your sports then call the provider.  Tell them you’re thinking about switching because of the cost.  They can probably work out a promotional deal to lower your rate.  The deal may not last forever, but it’d help to knock out some debt in the meantime.

Look for coupons and other money savings apps to reduce your spending.  That money could be put towards your debt.

What do you do to help pay down debt?  Leave a comment and let me know!

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Meredith Rines, a budget and financial strategist helping fans pay off debt and live the life they've always wanted.

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