Getting through rehab and getting your life back on track seems like an impossible task. This is especially true when you’re under a mountain of debt. Thankfully, you’ve already done the hard part, you’ve gotten clean and sober.
All that you need to do to get rid of your debt is to create a plan of action and stick to it. Not sure where to start on your plan to get rid of debt? We’ve got you covered! Just follow these tips and you’ll be well on your way to a debt-free life.
Interested? Read on for more!
Get a Side Hustle
It sucks, and we know it, but if your day job just isn’t getting the bills paid then it’s probably time to consider a side hustle. This is true even if your day job leaves you with enough money to cover your bills.
If you can get a job that helps you generate just $200 more per week, then you’ll be bringing home an extra $800 a month, minimum. You can use your paycheck from your primary job to pay off debt and live off the money you make at your second job. Trust us, a little side hustle can make a big difference.
If you think you’re alone in the need for a second job, think again. More and more Americans are working second and third jobs to cover their bills. If you’re working more than one job then you can bet your friends probably are, too.
Get Rid of Debt by Paying More Than the Minimum
First, stop using your credit cards altogether. They’re what got you here. Only use cash to pay for your expenses.
Next, aggressively pay down your debt. Once you’ve set a realistic budget, dedicate excess income to paying off your credit cards. For example, if your credit card has a minimum payment of $50, trying paying $100 or more toward it. This way you’re paying off the principle and not just the interest.
Tackle cards with the smallest balance first. Once they’re paid off, use the money that you were using to pay on the previous card to put toward your next smallest balance. Eventually, this will snowball and you’ll be able to put a significant amount of money toward your high-balance credit cards.
Once you’ve paid off your credit cards, you can use them again, but only in moderation! Try putting your recurring expenses on your credit card and immediately paying them off each month. You worked hard to clear up your debt, don’t fall into the debt trap again.
Set a Budget and Stick to It
Sit down and detail your income each month after taxes and benefits. Deduct your monthly expenses, including credit card payments that are more than the minimum. Then divide up your remaining income into weekly budgets that include gas, groceries, and entertainment.
If you’re having a hard time sticking to your budget, it may help to contextualize what you’re doing. Rehab facilities, like Inspire Malibu, help their patients take their recovery one day and one step at a time. You’ll have moments that are difficult, some bigger than others, but sticking to your recovery will ultimately lead to success.
The same philosophy is true for budgeting. If you give yourself $150 for gas, entertainment, and groceries per week, then you need to stick to it. It may seem difficult, especially if friends or family invite you out, but stick to it!
And remember, if you create a weekly budget, relief will come again in less than seven days. You can do it.
Ready to Tackle Your Debt?
With these three simple steps, you’ll be able to get rid of debt for good.
No one is saying it’ll be easy, in fact, it’ll probably be hard work at times. But just like the work you put into your recovery from addiction, getting your debt paid down will be an incredibly rewarding endeavor.
Want more help? Check out our financial security toolkit to help you get a jumpstart on tackling your debt!
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