Strategies to Pay Off Massive Amounts of Debt in 6 Months
Updated: Oct 23, 2020
If you could pay off massive amounts of debt in six months would you do it?
If you’re carrying debt and feeling overwhelmed by monthly payments, don’t give in to the feelings of helplessness. Follow these simple steps to knock out debt and greatly reduce your balances in six months.
✔️Put together a $1,000 emergency fund. You cannot become debt free if an unexpected emergency gets added to your debt. Make your emergency fund a priority. This is the first and most important step to get you moving towards being debt free.
✔️Start Budgeting Using a budget keeps you focused. Creating and keeping an accurate budget is your financial map. You know exactly where your money is going and what you’re saving for. Take the time to create an accurate budget and STICK TO IT. Once you’ve got a good working budget it will truly feel like you’ve received a pay increase.
The Financial Freedom Planner is a great resource for building your budget and getting your personal finances organized. Use this 23 page planner to organize your finances and get you moving towards financial freedom!
Get your Financial Freedom Planner here.
✔️Cut Your Expenses Once your budget is written you see where you are spending your money. For me this was eye opening! I didn’t realize how much money we were actually spending on eating out. Taking a good look at your expenses makes you question what you really need in your life to be happy and what is simply excess.
Take a full assessment of your expenses and if it isn’t necessary; get rid of it! Cut your cable bill, downgrade your internet speed, cut your grocery spending in half, stop eating out, cancel memberships, and so on..
Looking to cut your grocery and household expenses:
Quick Tips to Save on Groceries- I feed my large family for $150 each week.
Cut your non-food budget with these awesome reusable products.
✔️Sell EVERYTHING If you’ve got closets, garages, and storage units full of STUFF; sell it! Your emergency fund could be sitting wasting away in your garage. Go through your furniture and items, if you are not using them and they DO NOT bring you joy then it’s time they move on. Selling your stuff is a freeing process that rids your life of all this extra bulk while earning cash in the process. When you learn to live simply all this extra “stuff” doesn’t matter anymore. You’ll stop hoarding it and stop feeling the need to buy more.
✔️UTILIZE THE DEBT SNOWBALL. This is where the fun begins and for me it was like a game I HAD to win! Write down all of your debt payments from smallest to largest. Focus on paying off the smallest debt first while continuing to make minimums on everything else. When your smallest debt is paid off, you take it’s payment and roll it into the next smallest debt; continuing to make all minimum monthly payments. Very quickly your snowball will grow and grow and grow.