- How to get rid of debt fast
- How to get rid of debt fast-
How to get rid of debt fast
So, you are wanting to be debt-free. It really isn’t as hard as everyone makes it out to be. Yes, it takes some motivation and determination but, it is possible. Is it super easy? No, but what in life that is worth having is? You need to first determine why you want to be debt free. One you figure out the why, the how to get rid of debt fast comes easier.
We were normal just like you. We had student loans, credit card debt, car payments, 401K loan, and owed the IRS. Once we decided we wanted to be free from all that, it was just a matter of figuring out how. We were able to pay off $45,000 in just 17 months by using the debt snowball! If we can do it, so can you! Here are the tips and advice we used to do it!
How to get rid of debt fast-
Figure out your “Why”
First figure out why you want to be debt free. Here are some of the reasons we wanted to be debt free. It takes some sacrifice which is why your “why” needs to be a big one. I always think about getting rid of debt fast, like getting rid of weight fast. You need to have the motivation to stick with it. You know what you need to do, but actually doing it is the hard part.
Diet for your money-
Getting rid of debt fast is like putting your budget on a diet. You know you should only eat so many calories but that dang chocolate cake just stares at you. Then you start thinking “I’ll start tomorrow” or “I’ll start on Monday”. So, you really need to prepare yourself and keep reminding yourself why you want it.
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Once you figure out what your motivation is, make a visual of it. You can make visuals of your reason why and of your process. We used the printables that I have included in The Ultimate Budget Workbook. I colored in the thermometer as we paid off debt. Keep these in a place that you will see it everyday. You can even put smaller ones in places like your wallet so when you are tempted you will be reminded of your goals.
The fastest and most motivating way to get rid of debt fast is to use the debt snowball. It is more effective psychologically than worrying about interest rates.
The debt snowball means that you put all extra money toward your debt with the lowest balance. Once you pay it off, you roll that payment and your extra money toward the next lowest debt.
Make a list of your debts with the balances from smallest to largest. You start with the smallest balance so you can get the “win”. Once you pay it off you will feel so good! It will help motivate you to keep going. By the time you get to the largest balance, you should have a pretty big snowball payment to help knock it out fast!
Start selling everything you can so that you can get rid of the debt fast. Clutter causes anxiety so start selling everything!
This includes your car and any other big toys you may have that will cause your debt free date to be more than 2 years. Your goal should be to be debt free in 18-24 months by using the debt snowball. If this isn’t possible, then sell whatever is in your way.
Another way to raise money fast is to do a money savings challenge. There are several different ones you can do to save money fast. Including a savings challenge, pantry challenge, and a no spend challenge. Make a goal to save $1000 in 30 days or less. For more help with a savings challenge, check out the Ultimate Budget Workbook. It includes several worksheets to help you save $1000 in only 30 days.
Have a Yard sale!
Last but not least is making a budget!
Making a budget-
This is really the most important step to paying off debt fast. Everything start with your budget. Making a zero-based budget is the essential key to paying off debt fast. Once you have your budget together, every extra dollar goes to the debt snowball. For more help with making and sticking to your budget, join the free 7 day budget makeover challenge! You will get step by step direction plus a free budget worksheet.
Join the 7 Day Budget Makeover Challenge to start paying off debt and saving money fast!
It is so important during this process that you stay motivated. If you don’t you will not stick with this journey. Keep visuals, read other’s pay off stories, and stay focused on your priorities. I used to read debt pay off stories every night to keep me motivated. It is easier to stick with something when you know you are not the only one doing it. Paying off debt can be lonely when you are the only one in your circle doing it. So, join Facebook groups, read blogs, and stay connected with others paying off debt too!
For more motivational stories check out:
Let me know how much debt you have to pay off in our Facebook group. Trust me you are not alone. Debt is a “normal” part of our society. Let’s be weird together and have financial FREEDOM!!!
Hi, I am Ashley and I am here to teach you how to budget, save money, and pay off debt with simple and easy to implement tips. I was able to pay off $45,000 in 17 months including $25,000 in student loans in just 10 months. I am now a Ramsey Solutions Master Financial Coach and help people like you manage their budgets so they can live the life they want. I also have a degree in psychology and help you get to the root of your money problems. I have also written two ebooks to help save you money and how to budget for beginners.