Create a budget
It may seem challenging at first, but if you really want to get out of debt you need to scrutinise those budget categories to see where you can cut costs. You need to make sure that you scale back your spending and allocate that money towards paying your debt off faster.
Pay off the most expensive debt first
A popular trick promoted by many financial experts involves sorting your credit card interest rates from highest to lowest. By paying off your bills with the highest interest rates first, you can avoid having to prolong the amount of time you’re in debt.
Pay more than the minimum balance
You can make a big difference by making weekly instead of monthly payments. You can also try doubling your minimum payment and this will go a long way towards paying off debt faster than anticipated.
Get rid of credit cards
You need to have self-control to avoid falling into the trap of enticing credit card offers. A simple step you can take is to remove all credit cards from your wallet. This will force you to stop spending with your credit cards and will help you adopt new spending habits.
Use your bonus to pay off debt
Take that 13th cheque and use it to pay off debt rather than splurging on luxury items. Simply commit to allocating this money toward your debt payoff plan and fulfil your commitment.
Change your habits
Be honest and realistic about how you spend each day, week and month. Ask yourself what you can do to change your habits. Make a pledge to introduce a new habit each day which will ensure that you avoid unnecessary spending.
Have an emergency savings account
Save a substantial amount and then use that to pay off some of your outstanding debt.
Find ways to save
You could take leftovers for lunch instead of buying lunch every day.
Pick up extra shifts at work
You can volunteer to work extra shifts and use your overtime money to pay your debts off