Did you know that roughly one in four employees do not put money away in savings every month? That is a lot of people! Almost eighty percent of Americans are living paycheck-to-paycheck. That is a lot of debt! The majority of debt comes from student loans, credit cards, car, and home. The amount of debt in those four areas has increased in 2019.
We want to help you get rid of some of your debt! We can’t give you a raise or a bonus. But we can give you some ideas!
To start off with, make paying off your debt a goal! If you have not written down all of your debt, we suggest you do so. When you write it down, be sure to include how much debt you owe from smallest to largest. You can also include your interest rate as well so you have everything in one place.
Have you started a budget yet? If not, please set one up. It is very important when paying off your debt is a goal. With a budget, you will be able to see where you are really spending your money and areas where you can spend less money. Once you have a more solid idea on your spending, you can put more money toward your debt. Start by making minimum payments on your debts.
Having an emergency fund will help protect you from getting in a similar situation again. It’s very important to have a fund like this! In the worse case scenario, you lose your job; you still have bills to pay. Emergency fund to the rescue!
Last but no least, do not accept advice from everyone. Like we mentioned earlier, the majority of people have debt. It does not make sense to accept advice from someone who has debt themselves. Keep that in mind when talking to others about your financial situation.
Whichever route you take, it will be a tough time but we know you can do it. It will take dedication but it is possible.