Getting out of debt every year is one of the most popular New Year’s resolutions. Like any other promises, eliminating debt in the new year can often drop by the wayside in just couple of months. We all know that debt is one of the biggest factor of financial problems. In this way, it seems very impossible to achieve. If you aim to get out of debt in the new year, you are not alone. Here are some effective ways to follow in order to get out of debt and enjoy a debt free life this 2017.
Eliminate Bad Habits
Eliminating bad habits is easy to say but most people find it hard to pursue. Almost all of us have our own bad spending practice. It could be either a gambling or a bad shopping routine. The answer to these bad habits is simply psychological. Find other things to make you happy and cope up with such behavior. Try other physical activity that you love the most. Start with a daily exercise. It is a good way to improve good mood and stimulate body metabolism. There are other forms of physical activities to try such as running, weight training and sports. If you think any of these tips are not effective, seek for a professional help.
Prioritize Eliminating Debt
Do you have a credit card debt? Mortgage or student loans? If you have already determined to eliminate debt, you need to know which of these debt to prioritize. Some people pay first the smallest ones to largest. In this way, it will encourage you to keep going.
Do Not Add Another Debt
It’s simple as avoiding spending money. It may sound unworkable but it will effectively manage your debt. If there are things you need to buy for yourself, use cash and try not to depend on credit cards or any other methods of borrowing. Make it work for you. Use extra cash to pay off debt. Limit your cash only to the things you need like food, utility bills and etc. Work out what you can cut down on your expenses.
Increase Cash Flow
Even if you follow all the tips above, it would be useless if you don’t have enough money to pay for your debt. In order to increase cash flow, here are the things that can help you:
- Do not buy food or eat from the restaurant. Bring your own packed lunch when going to work.
- If you need to go somewhere to enjoy, you can try a free park, beaches, free concerts, sporting events and hiking to entertain yourself. Remember that being happy doesn’t have to be expensive.
- Sell stuffs that you don’t need anymore. Sell it online or create a yard sales.
- Create income from your hobbies or services you are familiar with. You can also work for part time jobs.
- Get a lowest price for insurance, goods, internet services and phones.
If you think you are unable to get rid of debt and you need more help, now is the time to consult a professional. Getting rid of debt may cause dramatic changes in your lifestyle. You’ll enjoy achieving a financial freedom and relief from stress. This year is the time to reflect and take action to the plans of new year’s financial resolutions that can help you build wealth in the year 2017.
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