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Can you imagine living a life debt free?! I sure can which is why I’m working hard to pay off my student loans. I’d like to be able to give more, take vacations, save for an early retirement, and reach all of my financial goals.
I love finding blogs that post their debt-free journey, it’s so inspiring! One day I hope I can share my own debt-free journey. So in order to get there, I am making lifestyle changes and breaking bad habits.
Below are 25 tips to help you pay off debt fast.
How To Pay Off Debt Fast!
Create A Budget
Do you have a budget? A budget allows you to control where your money is going. This will help you to get a better understanding of your financial picture so you know how much money you can put towards debt.
Start by determining your monthly net income (what actually gets deposited into your account.) Then figure out your fixed and variable expenses. They’ll vary from person to person and the actual amount might vary per month (groceries, etc) but these are expenses you know that you’ll have every month.
Next, determine what you have left by subtracting your expenses from income. Now apply that towards an emergency fund ($1000 or whatever number you determine) and then start applying it towards debt.
We have found that a good old paper and pen budget works best for us. I personally like to write things out on paper. And I’m more likely to follow through if I write it out.
You need to know where your money is going and how much you have left to pay towards debt.
Emergency Funds
Make sure you have an emergency fund because life happens and you want to be prepared. We have a small emergency fund in our savings account in our bank and we also have a Capital One 360 account. What I love about the 360 accounts is that you can set up multiple accounts. We have different accounts set up for Christmas, Birthdays, Auto Repairs, Home Maintenance, Registration, etc. Basically, anything that you need to save up for the year.
This has helped us so much! We determined what we spend for the year in each category and then divided that by 12 months to figure out what we need to save per month and then divide that by paycheck.
So, for example, let’s say you spend $500 a year on Christmas.
That’s $41.66 a month.
Or $20.83 a paycheck (assuming you get paid every two weeks.)
We have it set up so it automatically comes out of our bank account to Capital One 360 each paycheck. We don’t have to do anything and we know that we are saving. This is a great tool to have!
Have you heard of the snowball method to get out of debt? You start by putting all of your discretionary income towards your lowest debt, then pay the minimums on the rest of your debts. When you pay that debt off you take the money you were putting towards that debt and start applying it to the next lowest debt and just keep going down the line until you pay all of your debt off.
Some people prefer to pay off debt by paying on the debt with the highest interest rate. While that makes sense many find it’s better to snowball the lowest debt as it builds momentum. Do what works best for you as long as it gets your debt paid off.
Commit To No More Debt
When my husband and I got married we made a commitment to not take on any more debt. It’s been hard at times, especially with me staying home with the kids, but we did our best. We’ve been slowing paying towards our debt and cash flowing expenses as they come up.
I know it’s not always easy to do when you’re living paycheck to paycheck but try to make a commitment with yourself and your spouse to not take on any more debt.
Meal Plan
Planning your meals is one of the best ways to cut down on expenses. Your grocery bill can get really expensive. Planning out what you’ll have for the week helps you spend less and helps you use up what you already have.
{P.S. Have you checked out my meal planner? Check it out here}
Reduce Your Grocery Budget
Freezer cooking is a great way to save money. There are many times that I don’t feel like cooking so having a meal that you can stick in the oven, crockpot or instant pot is so nice. Having meals ready will also help you to not eat out as much.
Make food from scratch. Instead of buying pre-made why not make your own. Saves money and it’s healthier!
Bountiful Baskets- this is a great option to save money. A group of people come together and pool their money together to purchase large quantities of produce at a discount. I’ve found that they produce lasts much longer too!
Aldi’s or other discount type stores are a great way to reduce your grocery budget.
Double batch cooking. Cook once, eat twice.
Order online pickup. Avoid the temptations and order online so you know you’ll stay within budget.
Know Your Triggers
What do I mean by this? Well simply that knowing what triggers you to spend will help you with your spending. I know that if I’m feeling anxious or bored, I like to spend money. So instead of going to Target (another place I need to avoid to not spend money), I will start cleaning or going through stuff. Going through my stuff and organizing helps me to not want more junk in my house.
Free or Cheap Date Night Ideas
Rent a movie from the movie store or Redbox or better yet watch a movie on Netflix. Grab some popcorn or ice cream and have a movie date night. Or find a free concert to go to. Check out this list from How Does She for more ideas. 25 Free Date Night Ideas
Buy Used
Try to buy used whenever you can. Or find it free. I always check the consignment shops for my kid’s clothes. We have a really nice consignment shop for women’s clothes that I like to shop at.
If I need picture frames or furniture I check the local thrift stores, friends/family or try to re-purpose something that I already have. Paint goes a long way!
Make Your Own Stuff
Can you sew? Are you crafty? Making your own stuff is a great way to save money.
Cut Your Spouse/Kids Hair
We bought a hair clipper kit for my husband for $20. We’ve had the same one for years and use it every month. It comes with directions but I honestly don’t even need them anymore. I’ve had lots of practice. 😉
I’ve even trimmed my kid’s hair before. My sister is a cosmetologist so when we visit her she cuts their hair and in between I do trims. I’ve only paid for their haircuts maybe twice ever.
Great way to save money!
Learn How To Do Stuff Yourself
It costs a lot more to have someone come and fix things. If you own your home, learn how to fix things yourself. YouTube is a great place to check for tutorials. Not handy? Do you have a relative or a friend who is handy who would be willing to help? Do you have any skills you could use to barter?
Buy Stuff Out Of Season
Buying stuff out of season is a great way to get a bargain price and save money on stuff you need. Check out the clearance racks for out of season clothes.
Check Craigslist Or FreeCycle
Need a new dresser but don’t have the money for it?
FreeCycle is a great place to check for free stuff. What someone else doesn’t need may be just what you’re looking for. Craigslist has a section for free stuff as well.
Start A Monthly Supper Club
Save money on restaurants and expensive drinks and start a monthly supper club.
Basically, you get a few couples together and each month you rotate houses and have a delicious home-cooked meal. When it’s your month to host you plan, shop, cook and clean. When it’s not your month to host, just relax and enjoy it!
Pay Cash
Paying cash for things helps keep your spending in check. You’re less likely to mindlessly spend with cash. You can’t swipe it and go off your spending plan. Plus you know exactly what you have left to spend for the month.
Sell Stuff
Most of us have too much stuff. Selling what we don’t use is a great way to make extra money to put towards debt. You could also have a garage sale. Don’t think you’ll make much or it’s not worth your time? We once had a garage sale that didn’t have anything that was a high dollar item and we still made $400!
Get A New Wireless Provider
Are you spending a lot of money on your wireless provider? Have you heard of Republic Wireless? We switched to them a few years ago and have saved a ton of money. They have several different plans and you can change the plans throughout the month. So if I know that I’m going to be using more data than I normally would, I’ll switch my plan so I don’t get charged.
Cut Cable
Cutting cable is a great way to save money. Try Hulu or Netflix and you won’t even miss it. We used to have both and it was still less expensive than cable. Now we only have Netflix and it is more than enough for us.
Negotiate Lower Interest Rates or Fees
Call your credit card companies and ask for a lower rate or ask them to take off late charges. You can also call your bank and ask for overdraft fees to be taken off. What’s the worst that can happen? They’ll say no but chances are they’ll be able to take off some of the fees.
Ride Bus/Bike/Walk
Save money on gas and auto repair expenses by riding a bus, biking or walking. Plus walking and biking is great exercise.
Get Books/Movies From Library
I always check the library to see if they have books that I’m looking for. If they don’t then I’ll ask friends if they have the book or I’ll look for the book used on Amazon.
Drop Or Cut Back On Expensive Habits
Alcohol, smoking, and coffee habits can add up quickly. We recently bought thiscoffee frotherand it works so well! I can make my own lattes at home, saving money on expensive Starbucks trips. The best part is that it’s only $15!!
You aren’t going to follow everything 100% of the time. So if you overspent on your groceries then let it go and start fresh next month.
For several years we only paid down a few credit cards and then just committed to no more debt. Now that our kids are in school full time I can hopefully earn more and we’ll pay off our debt faster.
My point is, do your best and make progress even if it’s slow progress.
