Last time, we gave you four great tips for getting out of debt. Today, we’ve got the last four of our eight tips:
5. Prepare for the unexpected. Our lives are full of struggles from time to time, and a lot of times these come in the form of car repairs or medical bills. It’s important to set some money aside regularly for these kinds of things. Take a little bit from your grocery budget, your movie budget, or your latte budget and put it away into a separate savings account. If something does come up, you’ll have that money on tap so you aren’t dipping into your budget to pay for it.
6. Lower your interest rates. At any time, you can give your credit card company a call and ask them to offer you a lower rate on your card. If they refuse, you can always shop around for a card with a lower rate and switch to that one.
7. Acknowledge your progress. When you hit incremental milestones in your savings, give yourself a little treat. There’s no sense in adding to your debt though, so keep the reward under $100 and put the emphasis on the meaning of the treat more than the monetary value.
8. Keep building that avalanche. The more items you can knock off your list, the more you can pay off your remaining debt. As you eliminate debt, you can increase your savings and plan for your future. At a certain point, if you need help, contact a financial professional.
I’ve had some requests lately for bonus tips, so I thought I’d give you a few today. Here are some extra ways you can cut on your spending and in turn, cut down on your debt:
- Find tax deductions and credits.
- Abandon any unused subscription or memberships.
- Cut down on expensive hobbies.
- Never pay full price.
- Don’t be a snob about having the newest and best things.
If you have any questions for me, feel free to reach out anytime. I would be happy to provide you with even more tips to help you budget and plan for your future. If buying a home is in your future, I’d also love to show you some great down payment assistance programs that make purchasing a home a lot easier than you might think. I look forward to hearing from you soon.