17 Ways to Get Out of Debt and Stay That Way

Debt is a dirty word. But for most Americans it’s a way of life. It’s hard for people to buy a house or pay for a college education without going into debt. But that debt is what financial advisers call good debt. It’s the debt that pays you back; there are more pros than cons to taking on that type of debt {the college debt in my mind though is questionable}.

It’s that other kind of debt, that I-don’t-have-cash-so-I’ll-just-charge-it type of debt that gets people into trouble. Sometimes life throws you curve balls and you’re left with a mountain of debt for reasons beyond your control, and sometimes it just boils down to willpower {or a lack thereof}.

Whatever the reasons that landed you in debt, crawling out is hard. Staying out of debt is even harder, but certainly not impossible. Here are some tips to help dig yourself out of debt and stay there!

1. Make a budget. This is the very first step you MUST take to be successful. If you aren’t willing to set a budget, I would stop reading. You have to have a plan in place or your journey out of debt will. not. work. Not sure where to start? Check out this post on Budgeting for Beginners.
2. Kick it off with a 30-day spending freeze. If you’ve never tried a spending freeze, maybe ease into it with a 7 day attempt. If you’ve done it before, aim for a full month. That means 30 days of spending money on NEEDS only, ZERO wants. No Starbucks runs, no new shoes at the mall, not even a $.99 bottle of nail polish.
3. Start small. If you have a credit card or two with small balances, work to pay those down first. Then start chipping away at the bigger balances. Getting the little amounts paid off will feel like such a victory and seeing those zero balances will energize you!
4. Slash your grocery budget. Plan a menu, shop from your pantry first and then a list second. Stick to that list. Check the weekly ads and once you’ve seen what’s on sale, make a menu for the week {or two weeks, depending on how you shop}. Then build your shopping list around that menu. Be sure to account for daily snacks, and all 3 meals as well as drinks for each meal and desserts, too {can’t forget the best part!}. That will prevent mid-week trips that always result in overspending.
5. Balance your checkbook. Keep careful tabs on what you’re spending and where {save all your receipts or track every shopping trip online}, and then make sure that spending is in line with your budget. If you see you might be going over in one area, make adjustments in other areas to stay within your allotted budget. Be mindful of your account balances to avoid back fees.
6. Track your spending with an app. If you aren’t a fan of logging onto your account or multiple accounts if you have many at different banks, look into getting an app to track your spending. There are so many great {and free!} budgeting software tools right at your finger tips these days, but Personal Capital is my favorite.
7. Use cash. Cash is such a visible way to keep spending in check. You can see when your money is dwindling and then when its gone, so are your days of spending. The end. Set your household bills to auto withdraw each month and pay cash for the rest. Even if you are an online shopper like me, just buy yourself monthly gift cards, load money onto a prepaid Visa, or deposit money into your Paypal account. No money, no spending.
8. Just say no. You are going to have to add “no” to your vocabulary and you’re going to have to say it again and again and again. Say it to your kids when they want something, your friends when they want to go out, yourself when you want that cozy sweater that’s half off. No must become your favorite thing to say!
9. Try quitting harmful addictions. If you are a junk food junkie, gambler or a smoker, the costs add up.  Quitting will put a major halt on spending and free up some extra money in your account each month that you can put towards paying down those debts.
10. Don’t go near the stores that tempt you.  Or any stores if that’s what it takes. Seriously, limit the temptation and just stay out.  I guarantee that if you look hard enough, you will find an amazing deal every time you walk into a store.  Even great deals cost money, though, so if you’re looking to save, it’s best to avoid them all together.
11. Make frugality a habit. Spending can be an actual habit you have to break. That’s hard and it takes work, but studies have shown that if you replace a bad behavior with a good one, it will help. Make that good habit savings. Integrate frugality and savings into your life at every turn. These post will help you achieve that: 20 Tips to Live a Frugal Life or 52 Ways to Save $100 a Month.
12. Stop paying into your retirement accounts. Wait, WHAT? No seriously. Just for now. It doesn’t make sense to be contributing to a Roth IRA or your 401K if you have credit cards with crazy high interest rates. Take some time off from putting money away for retirement to focus on getting your current debt situation taken care of. When that debt is gone, immediately begin contributing again {because it’s sooo important!}.
13. Get your family on board. Getting out of debt is hard work, so you need everyone in your family on the same page. This is a non-negotiable. If you are saving like crazy to pay down your debt and your hubby is out there spending like crazy, you’ll fail! Schedule a sit down family meeting and go over your plan of action. Everyone needs to buy into it so everyone can contribute to keeping you on track. Getting your spouse’s help and support is key though if you’re married. Work together to create a feasible budget.
14. Work towards an emergency fund. Even a small one is better than nothing. If it’s not enough to open a savings account, open a totally free checking account. If you think you’ll be tempted to spend it, open it at a different bank and don’t get any checks or debit cards attached to it.
15. Cut up those credit cards. If you keep charging you’ll never crawl out of debt. Cut up your cards and then if the money isn’t there, you do. not. buy.
16. Unsubscribe from sale alerts. If you’re anything like me, you probably get 20+ emails a day alerting you to some major super awesome sale that you just must participate in. Eliminate the temptation by unsubscribing from those email alerts.
17. Pay bills anytime you get an influx of cash. Tax returns? Immediately use them to pay down debt. A bonus at work? Make an extra payment this month. No need to just make once a month payments. If you get extra money, use it right away to make another payment so you are not tempted to spend it on something you don’t really need.

While money can’t buy happiness, being responsible with it certainly can. Stressing over money really isn’t worth the toll it takes on your relationships, your mental and physical well-being, and your overall goals. Getting out of debt is where it’s at!

Keep calm and save on,

~Mavis