Debt. Yuck, just seeing that word makes me cringe. I don’t think anyone in the whole world likes the word debt. It’s stressful, it’s annoying and it has a terrible reputation. I’ve always been pretty good at managing my money but I do have some debt. You find that savings seem far away as soon as you have a car loan, student loans, and credit cards. The debt can start to pile up. Then, it ultimately gets harder to put away for a rainy day and that’s when the stress sets in.
To reach your debt-free goal, don’t wait until you’re older. You must start developing responsible habits in your twenties so that you can become debt-free and stay that way. So let’s take a second to reflect on our debt and financial stress and figure out how to make it better. Because guess what? IT IS POSSIBLE! Reducing your debt can be done just by making some simple changes in your life. These are my tips on how you can reduce your debts and eliminate financial stress.
Tips & Tricks
Tip 1: Pay at least the minimum you can on your credit cards. I have only two credit cards. No matter how many you have each month try to pay the minimum amount each month to lower your debt. This not only will help the amount you owe, but it will also help your credit score. One thing I don’t recommend doing is closing out your credit cards. I did this once many years ago (because I didn’t know) and my credit score took a bad hit. Pro tip: If you can afford to pay more, pay it!
Tip 2: Give up something that isn’t a necessity each month. Okay, I get it. I love getting my nails done too. I also love buying new clothes and getting a beer with my friends. But guess what, friends, those aren’t necessities. Each month try and give up one of your more pricey activities to lower your financial stress. Remember they are ‘wants’ for a reason…not must-haves.
Tip 3: Use some smart grocery shopping habits. Food is essential. We need it to survive. But lately, it’s gotten way more expensive…making it more stressful. Buying food can be done on a budget and save you from going into debt. Some ways to save are by purchasing food in bulk, clipping coupons, and searching your local grocery ads for weekly sales.
Tip 4: Put away $50 for each paycheck if you can. A way to reduce financial stress (for now and the future) is by saving when you can. One thing I have learned is that saving when you can benefit your financial and mental well-being. If you have the extra funds do it! It’s always my goal to do $50 a paycheck, but sometimes I end up doing $10 instead. Whatever you can do, every little bit counts!
Tip 5: Tip 5: My final tip is to go with cash when you can. I’ve noticed over the years that if I don’t use my credit card (even though I’m a big fan of the cashback) I tend to spend less. Switching to cash will help you reduce your spending habits and in return, reduce your debt. On average, people spend about 15% more on purchases when they use plastic. Think of it this way, if you don’t have the full amount of cash you need right then in there to buy it…you can’t!
To find out more on how you can reduce your debt and financial stress click here. If you would like to learn more about the history of debt and how it applies to your everyday life click here.
With Love,
Lex Paige
