Having debt is like an all-consuming grey cloud that is constantly hovering over you. No matter what you purchase or how much money you make, having debt is stressful. Having debt is extremely common starting from a young age. Most young adults graduate college with student loans they have to pay off. As you get older, your debt accumulates, with mortgages, car loans, and more. Being an adult is expensive, and often a side effect of that is a lot of debt.

However, getting rid of your debt is not impossible. It will take time and some lifestyle changes, but freeing yourself from that grey cloud of debt looming above you can happen. Live your life without the stress of debt, here are 4 steps to take towards becoming debt free:

1. Put More Money Towards Your Debt Repayment

If you want to pay off your debt quickly, try putting more of your paycheck towards your debt repayment. Your debt collects interest as the months go by that you do not pay it off, which only increases the total amount you have to pay. Instead, just put more money towards paying off your debt. If right now you only put about 10% of your paycheck towards debt, bump that up to at least 15%. It will be more money coming out of your paycheck, but you will end up saving money from not paying interest on the debt in the long run.

2. Create A Stricter Budget

The stricter you budget and the less money you spend on frivolous things, the more money you will be able to put towards paying off your debt. Although you might dread restricting your money spending habits, it is a necessity when it comes to becoming debt free. That just means you might have to sacrifice your daily coffee and shopping trips if you want to be debt free, unfortunately. Use a budget calculator that will help calculate your monthly expenses.

You put in salary after taxes, monthly expenses, and monthly savings and it breaks down
your budget.

3. Earn More Money

This one is obvious when it comes to paying off your debt… the more money you make, the more you can put towards paying off your debt. But earning more money is not necessarily easy. Do not go and quit your job in hope of getting a higher paying one, there are plenty of ways to make money on the side. You can start a side hustle, such as driving for ridesharing apps or delivering foods.

Do you have tons of clutter laying around your house that you no longer have a use for? Easy, sell it online, there are plenty of online marketplaces to choose from. You could also take on a part-time job. There are tons of ways to make some extra cash that you can put towards paying off your debt. You might just have to work extra hard for a little while to save up enough money, but it will be worth it in the end.

4. Use Your Tax Return Check

Filing your taxes is everyone’s worst nightmare, but getting that tax return check in the mail is always exciting. But as tempting as it is to immediately cash in that check and treat yourself to something nice, it is best to save it. If you are trying to become debt free, you should put that tax return check towards paying off your debt. Then, once you finally have debt, you can use that precious check to treat yourself to something nice and not feel bad about it.

Having absolutely no debt in your name is everybody’s dream. With no debt, you can live a more carefree life without constantly being concerned about your financial burdens.

Becoming debt free is a process that will take time and dedication to achieve, but living a life without that all-consuming grey cloud above you is definitely worth it.

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