PAY OFF DEBT

Debt sucks! Debt is not the way of life. You don’t have to live with debt. Simple ways to pay off debt no matter your income level.

WHY SHOULD I PAY OFF DEBT?

• Improve your credit score. When you have good credit get lower interest rates on personal loans compared to people with bad credit
• Financial freedom
• Save more
• Invest more
• Build generational wealth

KNOW HOW MUCH DEBT YOU OWE

First step is awareness. Don’t get anxious or overwhelmed if have a lot of debt facing the truth is crucial first step to paying off debt.

Write how much debt you owe, type of debt (ex. student loan), balance/amount owe for each, and interest rate (APR).

CREATE A PLAN TO PAY OFF DEBT

Write your repayment plan down include realistic time frame for short and long-term debt repayment. According to statistics you’re 40% more likely to accomplish your goals when write plan down. Hold yourself accountable by making copies of your debt repayment plan to post around the house, in your car, etc. Also, posting your plan helps you think twice about spending which will hinder your debt- free goals.

Debt snowball method recognized by Dave Ramsey suggests paying smallest to largest debt first as motivation to continue paying off debt. Every time pay off small debt put extra money towards next debt until all debts are paid.

Debt avalanche method is paying off debt with highest interest rate first. Continue until highest interest rate debts are paid. By paying off highest interest rate debt first save money.

Budget! Remember it’s not how much money you earn. It’s how well you manage your money and save. Be willing to sacrifice now to be rewarded later. Readjust budget accordingly to make improvements to spend less to pay more debt. For example, medium latte at Starbucks cost $3.65. If you buy latte Monday through Friday spend $18.25 in one week. $73.00 in one month. $876.00 in one year. Paying off debt is easier than you think when creative with your budget.

TRACK YOUR PROGRESS

Write down all your expenses to see where your money is going. Figure out what you NEED vs. WANT. Want is define as something not necessary can live without! Eliminate your wants as much as possible to use money to pay off debt. Find savvy ways to save on expensive bills such as housing, transportation, daycare, and food expenses. Maybe Netflix instead of cable. Cable is expensive will save a lot of  money in one year. Buy reusable instead of disposable plates, cups, and paper towels. Imagine how much money save eliminating other expenses. Every penny counts!

SIMPLE WAYS TO PAY OFF DEBT

When paying off debt or in general never compare your life to others or focus on someone else’s portion. You don’t know if people are living a lie, drowning in debt, or sacrifices to live their lifestyle. Bottom line is please don’t try to keep up with the Joneses! Keeping up with the Joneses equals debt especially when can’t afford it. Don’t do it for the gram (Instagram) or the book (Facebook).

Simple ways to pay off debt:

• Use annual pay raise to pay off debt instead of spending more
• Bring your lunch to work instead of buying lunch
• Limit eating out
• Do your own hair besides professional hair trims & moisture treatments
• Pay debt first even if live paycheck to paycheck or short of money. Pay debt before pay bills even if only $20
• Apply for college scholarships and grants to reduce school loan needed
• Shop sale and clearance for clothes. Better yet don’t buy new clothes
• Limit going out every weekend or find free activities. Easily spend $50 -$100 or more per weekend
• Don’t buy car can’t afford. No new cars or leasing cars. When pay off car use car payment money to pay off debt
• Sell your car if aggressively want to pay off debt. Use public transportation. Don’t have to pay for gas, car insurance, or car repairs. All I hear is cha ching! Cha ching! (Insert money face emoji)
• Credit cards are not bad when used properly! Don’t use credit card if can’t afford to pay entire monthly bill.  Some credit cards have reward program that allows you to earn points on every purchase. Use points for cash back to pay off debt!!
• Do your own manicure & pedicure (Practice makes perfect)
• Pay bills on time to avoid late fees
• Have enough money in your bank account to avoid overdraft fees
• Tithe & give generously
• Find job with student loan forgiveness program. Work for company until pay off debt! Win- win situation
• Stop taking expensive vacations
• Don’t upgrade your iPhone
• Get second job
• Get roommate to split bills
• Married folks can live on one income
• Single folks can live at home
• Start a side hustle/ small business
• Save half your paycheck to pay off debt (For my aggressive debt-free people)
• Use tax refund to pay off debt
• Sell items and clothes. Try online or local consignment shops
• Substitute cable for Netflix 

REWARD YOURSELF TO STAY MOTIVATED

Consistency pays off! Small wins add up to big payoffs. Reward yourself when reach debt payoff milestone within reason. Perhaps professional manicure and pedicure, outing, or favorite latte from Starbucks.

When payoff ALL your debt BALL OUT ON A BUDGET.  Make a vision board to stay motivated of endless possibilities when payoff all your debt!!

High five to being debt-free!!!

SAVE WHILE PAYING OFF DEBT

It’s important to save while you pay debt for emergency fund at least 3-6 months worth of living expenses for unexpected life events like home repairs, car breaks down, job loss, etc. Have a percentage of your paycheck automatically deposited to your saving account as little as $20 per paycheck. At least yearly deposit additional $20 or more. You will be surprised how much money will accumulate overtime.

Comment below how plan to celebrate your debt payoffs!

Comment below your money saving tips!

We in this together! We collaborate not compete on the moneymaker team! All I see is green lol.

“Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor”. – Romans 13:7-8 (NIV)

HOPE YOU ARE ENCOURAGED!

Peace, Love, & Blessings!

XOXO Go Patty💋 😘

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