Debt sucks. That’s an understatement. Being in debt is so much more than just a financial burden; it’s also emotional turmoil and mentally stressful. Whether we want to admit it or not money affects everything we do and it absolutely controls everything around us. That statement doesn’t make me shallow or superficial, it’s just the truth.
If you want to live in a nice home you need to be able to pay for it, if you want to travel to exotic destinations you need to save up the cash to do so. Unfortunately what happens more often than not is people want to do things they can’t afford and therefore they end up using credit to pay for an extravagant lifestyle. If you can’t afford to pay off your credit card bills every month you end up in debt and that’s a problem.
That’s how I got into debt in the past and after hitting rock bottom I decided to change my habits and turn my life around. It wasn’t easy, but I did it. I made several changes in my spending habits and mentality towards money and it eventually helped me become debt free. Here’s how I did it.
Get a second income.
This was absolutely the one thing that helped me become debt free. I got a part time job working in a retail store. During weekends and one night a week after I finished working at the bank I would go the mall and sell clothes. Then six months later I started freelancing; with one full time job and two part time jobs I saw my debt get paid off real quick.
Automatic transfers will save your life.
OF course as a former spender there was always the temptation to go shopping with all my extra income. I knew if the money stayed in my bank account I would spend it so I set up automatic payments from my checking account to my credit cards every month. If I didn’t see it, I wouldn’t think about it and if I didn’t think about it I wouldn’t spend it.
Lower expenses.
Fewer expenses means more extra money at the end of the money that you can put towards your debt. It’s the financial equivalent of burning the candle at both ends. If you work a second (or third) job to earn extra income to put towards your debt AND you lower your expenses to free up extra money each month you are attacking your debt twice as much. It’s a win-win.
Of course this means living without some of the things you love, but it’s worth it. Just ask yourself do you love your little luxuries more than you hate your debt? The answer is probably no.
The truth is debt can accumulate very easily and it can be much harder to pay off. Use these three tips to tackle your debt, pay off your credit cards and get on your way to becoming debt free.
Kristina Tahnyak
Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.
The second income thing is one that so many people seem to shy away from. They figure they already work full time, and that’s enough. Or that they would make so little from a second, part-time job that it wouldn’t be worth it. The way I always thought of it was this: If my main income can pay the bills and sustain us as people (food, gas, etc)…then the second income is 100% pure gravy. Even a job that brings in a few hundred dollars a month that’s over and above the current budget can make a huge difference in lifestyle, or your ability to pay off debt.