We’ve all been there: Your credit card has been stolen after a brunch downtown, or maybe your paycheck didn’t come through before an automatic payment cleared your account. Or maybe, worst of all, a loved one has fallen ill or been in an accident, and you had to use your credit card to cover at least some of the hospital expenses. All of these scenarios can be categorized as setbacks at the very least or the reason for a bad credit score at the most. But after the dust settles and you get back to real life, how do you pay off this debt and get back to saving your hard earned money?
Pay off the smallest debts first
The best way to go about clearing debt is to pay off your smallest charges first, so that you may use the money saved from paying those to put into your largest debts. One way to get the money to get started on this process is to get payday loans online. Get the amount you need to pay off the smallest loans quickly. Then you’ll pay back the payday loan, effectively consolidating your smallest loans into one payment. Once that’s paid off, you can focus on the larger loans that may allow a longer time in which to pay them back.
Cut costs where you can
Take a look at your checkbook (or maybe your online tracker) and see what expenses you can do without for the length of time to takes to get your credit back into shape. The biggest money suck of them all can be ordering takeout. After a long day at work or running errands, it’s easy to say you’re picking up dinner or say yes to a friend’s last minute request to meet for happy hour. But avoid both of those if you can. Forbes found that it’s five times more expensive to eat out than it is to cook at home. Even meal kit services are three times the money that you would spend on going to the grocery store yourself and cooking for your family. Make that your first cut.
Then, take a look at those automatic withdrawal services and decide whether they’re really worth the money for the product. Are you receiving a skin care kit every month that you only use once a week anyway? At that rate, most of the washes and toners will expire before you’re able to use them anyway, so you’re just throwing away your money, and exposing yourself to old chemicals, too.
An excuse to get healthy
Saving money doesn’t necessarily mean you must deprive yourself every second of the day. The better way to look at it is a new lifestyle that could open new doors for you. Gas can take up a lot of the budget in any household. If you live near work or have a flexible schedule that allows you to go in later than the average 9-to-5, look into buying a bicycle. Or, do the math for yourself and your area to decide whether or not it’s best to rent a bike to get to and from work. Many resources, including the bike New Haven App and the like, can help you figure out a route and the cost to make biking a part of your daily life. Biking has numerous physical benefits, plus it will be easier on your wallet than the struggle of owning a car. And don’t forget your helmet.
Accruing debt can be stressful and hard on your mind and heart. But these simple steps can get you back on your feet and back on track to hit the goals you’ve set for yourself and your life.