You Can Stop Unsustainable Debt by following these 6 Steps.

Unsustainable debt.  Whole nations struggle with how to control it, but you can be debt free by following these six steps.

  • Make a budget.  Check what your take home pay is.  List your monthly obligations.  For this exercise, don’t worry about whether your monthly obligations are over your take home pay, just get the expenses listed in order of priority such as Rent/mortgage first, food, utilities etc. 
  • Figure out which expenses can be cut.  You’ve heard that cutting coffee shop and dining out can save big bucks when all is said and done.  They do, but allow yourself some of what you enjoy, just cut how often. Eat out once a month instead of several times a week.  Make coffee at home instead of buying at the gourmet coffee house.  It adds up.
  • Overpay each month on your credit cards.  Paying only the minimum payment will take years to pay down balances. But Overpaying each month only works if you stop using the card, so stop charging expenses. Use your debit card, PayPal, Zelle, or other instant payment method to pay using cash instead of credit. 
  • Stop the impulse buying.  When you are done shopping in store or online, go through your cart just before you check out.  Remove the items that seem fun but are not needed.  Changing how you buy may take a little thought and time, but it is amazing how soon you begin to experience the relief from lower expenses.
  • Stick to your plan.  Way to go!  You have taken the steps to debt freedom.  Now you need to trust yourself and your plan.
  • Get Help.  Tell your friends you are cutting costs and ask for their help, since those eating out events might affect them too.  When you made your budget, if your monthly debt obligations came to more than your take home pay, you will either need a new job, a side job until you are balanced, or will need to consider working out settlements.  Need help figuring out the next steps?  Come see us at