How would it feel to be debt-free? Great? Of course, it would feel great! CNBC posted a most helpful article this week. Emmie Martin suggests giving up five things to become debt free. The road to becoming debt-free may not be easy or fun, and you will have to make sacrifices. Her article says that Americans carry an average balance of $6,375.00 of debt.
Eat Out Less
The cost of eating out is much more expensive then eating at home. She spoke to a man who paid off $70,000 in loans and became a millionaire by age 35. He said he packed his lunch every day. He prepared food in large batches on Sunday that he could eat throughout the week.
Don’t Obsessively Check Social Media
Social media makes it too easy to see what your friends, neighbors, relatives and acquaintances are doing and buying. It is hard not to want what they have. We are easily pressured and influenced by seeing what others have and thinking we deserve it too. Also, these social media platforms have targeted ads we see over and over again making it hard to resist buying the things they advertise.
Don’t Be In Denial
It is not helpful to deny you have debt or to pretend you have it under control. Martin spoke to a woman who decided she needed to figure out a way to pay off student loans. Her solution was to earn more income and reduce expenses to create the extra money needed to pay off the student loan debt.
Delay Other Financial Goals
You may want to buy a house, a new car or take a European vacation. The article suggests delaying some of these long term goals until your debt is under control and hopefully paid off. You still need to make sacrifices like forgoing starbucks and other little luxuries that add up over time. The article suggests it may even be helpful to use a good chunk of your emergency fund to pay things off more quickly and then you can replenish it.
Don’t Stay In A Job You Hate
The article says you should increase your income either by getting a new job, a new career or working harder toward a promotion.
All of these are great tips. However, if you have tried this and maybe it just did not work out or it may just not be possible to pay off the debt you owe, please call a Bond & Botes office today. Bankruptcy is available to offer a fresh start and our offices offer a free consultation.