I‘m convinced that there is only one surefire way to undo your debts. No, it's not with a debt consolidation company. We've paid off our debt without negotiating for lower payments, lower amounts owed, or fighting with collectors.
Some may say we had it easy. Sure, it wasn't the most difficult situation. But that doesn't mean undoing our debts was an easy task. Here are some things that worked for us as we fought our way to freedom from non-mortgage debt.
Step 1: Cut Expenses Wherever You Can
This isn't going to be pretty. If you want to get rid of your debt in a hurry, think of things you are paying for that you really don't need in your life anymore. For example, do you have cable TV? It's time to get rid of it. Visiting Starbucks every day on your morning commute to work? Well, I think it's time to make some coffee at home (or for you brave ones, try drinking water instead)!
Remember, this is how to undo your debts the hard way. Anywhere worth going is worth the extra effort, and paying off debt is no different.
Step 2: Get A Second Job, Or Third Job!
Once you've cut your expenses the most you can, it's time to start thinking about getting another job:
- Deliver pizzas.
- Clean houses.
- Mow lawns.
Step 3: List Your Debts Using The Debt Snowball Technique
This is where you list your debts smallest to largest in amount and pay them off in that order. Now, that may seem like the unsophisticated way to pay off your debts – everyone knows that paying off your higher interest debts first saves you the most money – but you need quick wins in order to stay motivated. As you pay off the smaller debts, you'll be empowered to pay off the larger ones. In the end, you'll pay off your debts quicker and with greater intensity.
Step 4: Rinse And Repeat!
The rich rule over the poor, and the borrower is slave to the lender. – Proverbs 22:7