Ditch Debt For Good With These 5 Steps
Let’s talk about the D-word…DEBT.
Student loans. Credit card balances. Unpaid medical bills. Car notes. No matter the type, debt can be overwhelming and scary and totally make you want to curl up and hide. Especially if you have a lot of it.
According to a recent study, millennials ages 25 to 34 had an average of $36,000 in debt in 2018 😬
Are you one of these millennials, searching for a way out? Well, I’ve got some good news for you…
It is completely possible to ditch debt for good, even with small means and a modest income. I say that with complete confidence because countless others have done it before and YOU CAN TOO.
Here’s the tough truth though. Doing so will likely require some hard work and a bit of sacrifice.
Get ready to roll up your sleeves because today I’m sharing tips, resources, and a bit of inspiration to get you started on your #debtfreejourney.
5 Steps to Ditch Debt For Good
The following steps are based on Step 2 of the 7 Baby Steps popularized by author and radio show host, Dave Ramsey (you’ll be seeing this name a lot today.)
Step #1: Shift Your Mindset
The first step to ditching debt is SHIFTING YOUR MINDSET. You have to truly believe you’re capable of conquering your debt before any real progress can be made. Get your mind right first, then move on to the next step.
Step #2: Confront Your Debt Head-On
You can’t change what you don’t confront. List ALL of your debts (except your mortgage if you have one) from smallest to largest so you know EXACTLY how much you owe. This may be a difficult pill to swallow but it’s absolutely necessary.
Step #3: Start the Debt Snowball
Make minimum payments on all of your debts except the smallest. Pay as much as you possibly can toward the smallest debt until it is paid in full. Repeat this process with each debt.
Learn more about this method: How to Get Out of Debt With the Snowball Plan
Step #4: Budget and Track Your Expenses
Having a budget and tracking your expenses will help you determine exactly where your money is being spent. Work to eliminate unnecessary spending wherever possible and identify any extra money that can be contributed toward paying down debt. Every little bit helps!
Need a hand creating a budget? Click below to get my FREE e-book: 5-Step Guide: Create a Simple Budget in Google Sheets👇
Step #5: Get Inspired
Paying down debt requires discipline and perseverance. Stay motivated by finding like-minded communities to support you along the way. Instagram, Reddit, and YouTube are great places to find #debtfreecommunity inspiration.
You can start by following @millennialmoney.guide on Instagram 😉
Still Not Convinced?
Just in case the tips above aren’t enough to get you started, check out these resources 👇
📕 Read This: The Total Money Makeover
This book features no-nonsense advice for getting out of debt and completely changing the way you think about and handle your money. While I don’t agree 100% with everything Dave Ramsey has to say about different financial topics, I’m confident his advice WILL help win. You need to read this ASAP!
📺 Watch These: Debt Free Screams!
This playlist from The Dave Ramsey Show on YouTube includes over 400 (and counting) examples of people who did the work and are now free. This is super inspiring stuff!
