Join us for Day #5 of the 20 Day Budget Bootcamp where we will talk about how to begin paying down debt!
Now that you have your budget in place, and you have discussed plans with your financial partner, it’s time to come up with an official plan of attack to pay down debt.
Here are 6 great tips to follow on How To Begin Paying Down Debt:
- Record on a piece of paper or word processor who you owe, and how much you owe. Include loans, (student, car, mortgage,) credit cards, and even money you owe friends or family that may be undocumented.
- Then rewrite this list starting with your smallest bill owed, until you have listed them all in order of amounts from least to greatest.
- Now focus on just your smallest bill and plan to attack that one bill with every single extra penny you can find. (start by finding things around the house to sell on Ebay or apps like LetGo.)
- Set your mind to it to send that one debtor every single extra cent you can find each month until you have it paid off!
- Enjoy knowing that you do have the power to control your finances, and that one day you will be free from the bondage that comes from being in debt.
- Find a way to CELEBRATE each time a new debt is paid off! Take your budgeted fun money and get a cup of coffee and dessert. Nothing expensive – but take the time to acknowledge and celebrate your hard work!
I love step #4 – because it sounds like a fun game to me. Since I’m pretty competitive, I’d be sure to be all in. I’d be on a treasure hunt finding everything I could to make that extra payment. 🙂
Celebrate with us over in our Facebook Group as well – we can all “like” it when you reach a new goal and support one another on our journey to being debt free! Add your ideas of how you are “finding” extra money each month to pay off that debt! Are you cutting cable? Are you quitting Starbucks for a month? Are you selling something? Let us know and we can cheer each other on!
This post is part of a FREE 20 Day Budget Challenge. To get all of the info right in your inbox, sign up below:
20 Day Budget Challenge
Take one month to get your finances in order - learn my best money saving tips and tricks!