From drowning to debt free: how I paid off $11,489 in a yearFebruary 28 2019
A great article posted by Money Magazine discussing how to get out of debt! Make sure you read the five tips at the bottom of the page..
The lightbulb moment
In June 2017, around my 27th birthday, I was sick of never having any money. I’d been living pay to pay my whole life.
I was paid monthly so I often spent the last week before payday living on my credit card. I had a budget I never stuck to, and no savings.
I used to tell people that I didn’t have the ability to save, that my expenses were too high. Now I realise these were all excuses.
When I read the Barefoot Investor, it was as if a lightbulb turned on in my head and I vowed to change my ways.
I started my journey on June 13, 2017. and challenged myself to become debt free within a year. I started with $11,489 of debt: $2443 on a credit card and a $9046 personal loan (I didn’t count HECS).
Top five tips for paying off debt
1. Get serious when evaluating your budget. What can you live without?
2. Work out your spending habits and try to overcome them. There’s no point having a budget if you budget if you can break a spending habit.
3. Find a source of motivation. Paying off debt alone can get isolating. Set up an Instagram account to motivate yourself and others. Use colouring charts to track progress.
4. Find ways to increase your income. The more money coming in, the more you can put towards debt.
5. Give yourself time! It can be a long progress. Look how far you’ve come, not how much further you’ve got to go.
Read the full Article here: https://moneymag.com.au/debt-free-paid-off/