cash•ti•vated

Paying off debt is one of those things that we all seem to dread.  I mean, we’re all kinda in the same boat, right? I know I am.

Debt is one of those things that unfortunately many of us, are still struggling with.  If you’re like me, and the majority of Americans are, we are paying on debt month, after month, without really getting it paid down.

This creates a waterfall effect, that just adds up over time.  Even with our best intentions, with interest payments added in, it begins to add up. And up it goes.  Making it tougher and tougher to pay down.

I think a good rule of thumb, is that if you can’t afford it, then you can’t afford it.  That being said, I realize that many people have debt that includes, emergency debt, healthcare debt, and school debt.  While none of it is good, sometimes we are left with little, to no choice, but to accrue some.

So here’s the good part.  

We can pay off ALL that debt.  Like ALL of it!

It takes some time, dedication, and planning, but it can be done.  Here are 13 simple ways that start paying off that debt.

And don’t be afraid, dig in, and get started.  The quicker you get started, the faster it’ll get paid off!

1. Create a Budget–  Ok, first things first.  You really need to start with a budget. No, not that “I’ll just add up my bill in my head”, type of budget.  Like a real one. You know, the kind where you sit down, either with an excel sheet, or a budget planner, (link to mine), or even an app and get to work.  This can be the scariest part of paying off debt because most people do not have any idea where their money goes. You’d be surprised about how much money we squander on silly things.  And that money can go towards paying off that debt!
2. Pay off Highest Interest Rate First, then Lower Interest Rate Debt–  So this might seem like a simple concept that many of you know, but how many of us apply it. It’s called Debt stacking.  Basically, you gather all your debt and rank it with the highest to the lowest interest rate. Then you pay off the highest debt first and make moderate payments on the others.  Then you move onto the next debt. This is a common, and time test way to pay off debt. There is another debt strategy called, debt snowballing, which includes paying off the smallest debt first and working your way up. Whether you go with stacking or snowballing probably won’t make that big of a difference, as long as you pick one and stick with it!
3. Sell Non-Essential Items–  So I’m gonna guess that if you look around, you’ll see many items around your house, worth money, that are collecting dust.  Maybe it’s an extra car, antiques, electronics. Well if you gather non-essential items up and make a plan to sell them, you’d be surprised how much cash you can make.  And just think, you won’t miss them, because you probably weren’t using them to begin with!
4. Trade in the Car, Drive a Cheaper Ride, or Ride the Bus–  This surprisingly is one of the hardest things for people to do.  People become quite attached to their cars, maybe its the comfort, maybe it’s the status of them. But trust me, it will feel much better to be debt free then to drive around a fancy rig.  Trading in for a cheaper car, selling an extra vehicle, or gasp, even taking public transit, is a great way to start saving money. C’mon, just try it.
5. Find a Side-Hustle–  Ok, so I know what you’re thinking, “ I work so hard, I don’t have more time to work”.  Well when we prioritize our life, we can make time. Not all side hustles take lots of extra time.  Maybe try becoming an Uber drive on weekends, or babysit in your neighborhood, or heck, even start a blog!
6. Take Advantage of Balance Transfers to Lower APR–  While I don’t recommend necessarily looking for new credit cards, being practical about it, you can find better deals on credit cards.  But DO NOT get trapped into transferring balances to a new card, and keeping the old card open. DON’T do it! If you transfer a balance, then close the old card.  Cuz trust me when I say, it won’t take long for you to start using that card again, and well, we’ll be in more debt than before!
7. Apply Extra Income Bonus/Tax Refunds to Debt–  This can be a tough one because most people think of a raise, or a tax refund as free money that they’ve earned.  And you have. But if you’ve done your budget (budget link), and you’re living fairly comfortably, using these extra funds to pay off debt will be a much smarter move, than taking that cruise you’ve wanted, or spending the extra cash on more stuff.  And besides, this isn’t forever, once you’ve paid off your debt, you can take that trip you’ve always wanted.
8. Halt All Non-Essential Spending–  So how do we define non-essential?  Well to me non-essential, means every extra expenditure that isn’t on the budget.  Like movies, clothes, magazine subscriptions, coffee, etc. It doesn’t have to be big things, but if you add up all the small things, they do add up.
9. Move in With Parents to Save Rent– I am not recommending this for everyone, because if you’ve got a family, or your parents live in a small house, this probably won’t work.  But if you and your parents still get along, and the accommodations work, this can be such a money saver. You need to set up parameters and a timeline, so nobody thinks they’re getting taken advantage of, but this will save you LOTS and LOTS of money!
10. Change Your Spending Habits– Just like halting all non-essential spending, changing your habits can make a big difference.  Bringing your lunch to work, taking public transit 2 days a week, buying clothes at Goodwill. It all adds up. And it’s not that hard.  Small changes, make big results.
11. Get Rid of Cable, Netflix, Internet, Magazine Subscriptions–  I personally did this and it saved me about $100/month. I got rid of DirectTV and subscribe to SlingTV which is virtually the same thing.  Now, if you want to really get crazy, you could get rid of it all! I realize this is a major thing, but think how much money and time you’ll have.  
12. Get Your Hair Cut/Dyed at Hair school, Not Salon– This can be tough, because like your vehicle, people like to spend money on appearance.  But truthfully, if you’re a woman, and you get cut/dyed, it’s quite spendy. I was spending close to $225 every 8 weeks. I did try a hair school, and it’s great.  And quite a money saver. It does, however, take lots of time. Be prepared to wait. If you’re super adventurous, try dyeing your hair at home, or even cutting it at home!  I did it, and it’s easy.
13. Shop at Goodwill/Second-Hand Stores–  I’ve always loved Goodwill and second-hand stores, even when I was a kid.  There are lots of treasures to be found! It takes some time and diligence, but you can find great deals and nice clothes for so reasonable.  

So there you go, 13 easy ways to save money and pay off debt.  I realize that trying all 13 would probably be too much to ask, but what if you just implemented a few of them, like 2 or 3?  Maybe give it a try and starting adding a new one every month. Before you know it, you’ll be debt free!