10 Amazing Tips to Crush your Debt in 2018

Saving money and getting out of debt can be a tedious and frustrating process. However, there are several ways you can get out of debt and stay the course. I’m sharing 10 amazing tips to crush your debt in 2018!

10 Amazing Tips to Crush your Debt in 2018

Paying off debt is a popular New Year’s resolution for many families in the United States. Each year, these people head into January with a huge goal of paying off the money they owe. By the middle of February, many people have fallen off the bandwagon and back to their old spending habits. It’s important to come up with realistic tips when learning how to budget, and figuring out ways to save money and get out of debt.

If you are one of those people, the following 10 tips should help you be able to reduce your debts in 2018!

Follow a budget. Having a budget isn’t a new concept for paying off debt. However, if you have failed at sticking to your budget in the past, now is the time to get serious. Start the new year off on the right foot by creating a budget that will realistically work for you and your family.

Reduce expenses. As you are creating your budget, you should be writing down every monthly expense your family incurs. With this list, you can notice patterns as well as areas in which you can reduce your spending. This extra money helps to pay off debt faster each month of 2018.

Cut up those credit cards. It’s important that you don’t continue to accumulate debt if your primary goal is to pay off everything you already owe. Shred your cards and avoid using your lines of credit.

Pay with cash. Withdrawing a specific amount of money each pay period helps you become more aware of your spending. Challenge yourself to spend only the cash you take out of your account following a payday. Using only cash provides you with the extra money you can put toward your debts.

Use an envelope system. Along with paying with cash, an envelope system helps you to make sure your dollars are stretched as much as possible. This prevents you from needing to use a credit card or withdraw more cash – which would slow down your debt pay off progress.

Create an envelope for each common expense, and fill them all when you get paid. The trick is to make the money in each envelope last until your next paycheck – with no borrowing or replenishing between envelopes! I’ll have to be honest and say this is one I don’t do. I’ve tried it before, but since I use my debit card for everything, I don’t take money out for the cash system. I am working on using a few debit cards and moving the money around to each designated card (a digital version of the envelope system).

Clip coupons. It may seem time-consuming, but couponing can free up money in your bank account, which can be used to crush your debt in 2018. Only use coupons for items you need or would purchase without a discount. Get tips on how to coupon and ways to reduce your debt using coupons.

Join store loyalty programs. These are free incentives to get you to shop at certain supermarkets, and they help you save money! Use the extra savings to shave dollars off your debt at the end of each month. Pro-tip: Learn more about loyalty reward programs and how they can help you save money.

Ask for lower payoff amounts. If you have credit cards or loans with a large balance, find out if the lender will work with you to lower the amount you owe. Some companies will offer a discount if you can pay the debt in full. This lets you crush your debt with one company and free up money for another business!

Earn extra money. Find odd jobs you can do around your neighborhood to make extra cash for your debt. You can also start a side hustle online, completing surveys or writing content for bloggers. Use the skills you have to find a way to earn extra money so you can pay off your debts faster.

Set goals. Challenging yourself to pay off a certain debt, or amount of debt, by a specific date will give you the motivation to get it done. Reward yourself (in a low-cost way!) once you have reached a goal.

Crushing your debt in 2018 is not an unobtainable goal. Use these 10 amazing tips to help you lower your debt in the new year so that you can enjoy life without the stress of money!