Here are 4 Tips to Smash Debt

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  1. Track Spending

One of the first steps to winning with money is to get on a budget.  If you are getting out of debt, I got you covered with tips on how to get your budget down to the bare necessities. To crush budgeting, you also need to track your spending. By tracking your spending, you can see how you spend your money and make adjustments that will help you smash your goals. Tracking makes everything transparent.  You can no longer wonder what the problem is because it will be right there in your face.

  1. Stop Using Debt (Including Credit Cards)

If you really want to get out of debt, you have to stop using debt as a means to get ahead. That also includes credit cards.  Think about it. It does not make sense to pay off debt while continuing to use debt. Common financial wisdom advises to build your credit score. However, you will not need to worry about your credit score when you have cash to purchase the things you want. Living credit card free sounds extreme and it is. When you live extreme, you get extreme results.  It is time to stop doing what most people do – worship the credit score gods. Ditch the debt. If you do not enjoy living debt free, you can always go back into debt.

  1. Use Cash Only

Now that you have decided to stop using debt, it is time to start using cash. The act of handing over cash will force you to think about the necessity of every purchase. As soon as you get paid, allocate your money according to your budget. Withdraw cash for variable expenses such as food, personal care, entertainment, gas, etc. Continue to pay for fixed expenses like rent, utilities, and auto payments using your debit account.

  1. Learn To Say “No”

On a daily basis you must learn how to say “No.” Start practicing now. No. No. No! If you are living on a budget, it should be clear what things you can afford to do or buy.  If you do not have the money to do something, the answer is no. If the expense does not benefit one of your life priorities, the answer is no.  There will be exceptions to this principle, but those will be rare.

Final Thoughts

You have to live extreme to become debt free fast. All those sacrifices will be worth it when you do not owe anyone anything. Imagine having the freedom to do what you want because payments, overdue bills, and mortgages are not holding you back. It sounds glorious. Trust me, it is. Slim down debt now!

By Simone, creator of Slim Fit Wallet

Thanks for reading!