Let's Get Out of Debt in 2022!

What is a four-letter word that could unnerve the strongest person in the world? Debt carries a negative connotation, and it can be difficult to face head-on. When you are in debt, it’s normal to pretend everything is fine. Debt can only stay hidden for so long until it becomes an overbearing weight on your shoulders. There will be a day when debt catches up to you, and we are here to prevent that from happening. Diving into a world being 100% debt-free can bring some anxieties along when beginning the journey. If you are 100% committed to breaking the chains of debt, refrain from swiping that credit card and taking out personal loans you cannot pay cash for. Yes, a shift in lifestyle is required, but you do not have to do it alone! Now, let’s talk about savings! 

Debt Snowball: 

An effective way to save money is as follows: 

• Start your “rainy day fund” by collecting $1,000. Once you have put this money away, pretend it’s not there and do not touch it unless an emergency emerges. 

• List all of your debts and begin with the smallest amount owed to the largest. By starting with the smallest debt to pay off, it will help you get on track. 

• While you are attacking the smaller debts, continue to pay the minimum amounts for your other, larger debts. 

• Repeat this process to plow through debt! 

It can seem never-ending or hopeless when you start the process of cutting down your debt, but don’t lose hope! This could take months or even years to accomplish, and you can do this! 

Shift in Livelihood

As stated before, tackling debt could potentially cause a shift in the way you live your life. No, this doesn’t mean you will have to backtrack to the college years of 24/7 Ramen Noodles, but you may have to think a little more about what you’re spending. 

Crazy Coupons 

We are sure you have continuously heard to cut coupons and save, save, save; are you doing it? When it comes to saving money, everything counts! Whether you save 0.29 cents on a pack of Coke Zero or $2.00 on facial wipes, you are still saving money. Yes, it seems small now, but imagine how much this would add up to by the end of the year? 

Ditch the Luxury Clothes! 

Children are always growing and buying clothes can become costly if not too careful. In this case, let’s be real: It’s not worth going into debt over your two-year-old’s ever-changing wardrobe. Travel around to local consignment stores and discover which stores sell previously loved outfits in decent condition. If you are an online shopper, search the web! There are many sites out there including thredUP and Poshmark that would be a great resource to get clothes for a fraction of the cost! 

The Food is Just as Good at Home. 

​​​​​​​Eating at a restaurant or visiting the drive-thru is so much easier than cooking meals at home. However, while you’re enjoying the freedom from the spatula, your wallet is paying the price. When eating out, you are likely to spend over half the amount spent from purchasing items to cook at home. If your friends are wanting to go out, try to coax them into a taco night at your place. 

Break Up with the Barista.

Yes, many of us love the sweet kick of caffeine in the morning, but did you know that it could negatively affect your bank account? Think about it, $5 a day on coffee during business days equals out to $25 a week. Cutting this out for a year, you’ll be saving roughly $1,200! 

You Don’t Have to be a Gym Bro. 

​​​​​​​If you like to stay active, there are many exercises to do at home to keep you in shape. You can still go for a run for free! Gather a few of your friends and start a running club or do a HIIT workout in your local park. You can stay fit and healthy without spending a ton of money on a gym membership. Also, check YouTube for some free workout routines! You can thank us later! 

This advice is provided to get you out of debt and start living your debt-free life! The hardest part is to begin the process, but it becomes a habit over time. Whether it takes you five months or five years, getting out of debt will lift a weight you may have felt for several years. Trust us, becoming debt-free is the best thing you could do for your mental health and wellbeing! If you would like any tips on staying out of debt, visit RamseySolutions.com.