How to Reduce Your Debt Today-6 Simple Steps!

In my opinion, there’s nothing more stressful than worrying about how you’re going to get the bills paid by the end of the month. Trust me, I’ve been there, and it’s not fun.

I’ll show you simple ways to reduce debt today so you can sleep better tomorrow.

Steps to Reduce Debt

• The first step to reducing your debt is to create a budget. It’s really not that hard to do, and it will give you a clear perspective about where your money is going each month. Click here to learn 3 easy steps to create a budget, or here to use Dave Ramsey’s free budgeting tool, called Every Dollar.
• The next step to reduce debt is to stop all new spending. This will allow you to use all available cash to pay down your debts. Remember, you can’t pay them off if you keep using them. I do recommend, however, that you allow yourself a weekly or monthly splurge as a reward for not spending. Just make sure it’s something small, like an ice cream cone, not a new pair of designer shoes!
• After completing your budget, go over it again and look for bills you can eliminate or reduce. Examples would be dropping cable, canceling gym memberships, or downsizing your cell phone plan. You can always sign up for them again after you are out of debt. The key is to find any available money to add to your debt payoff plan. Look at the small, unnecessary purchases you make on a daily basis. You may not even be aware that you are purchasing them- expensive coffee, vending machine snacks, and fast food meals are small purchases that add up.
• Contacting your creditors and asking for lower interest rates is another excellent tip to reduce debt. If you are in good standing and have been with the company for at least a year, your creditors may be willing to work with you and lower your rate for a specific period of time. Use that time wisely and pay off as much as you can before the rate increases.

• Next Steps to Take to Reduce Debt

• Once you have created your budget, the next step is to begin paying off your debt. I always recommend using the Debt Snowball method to pay off debt because it allows you to pay off your debt quickly and motivates you to keep going.
• This step is a biggie when it comes to reducing your debt-eat more meals at home. Everyone knows that it is so much cheaper to cook meals at home rather than eat at a restaurant. If you feel like you don’t have the time to cook after a long, busy day, experiment with slow cookers. All you have to do is put the ingredients in the slow cooker early in the day, and a hot-cooked meal will be waiting for you when you get home. I personally love the 40 Meals in 4 Hours Recipe Collection. The meals are designed to be prepped and frozen in advance, but they can also be prepped on the same day. If slow cooker meals don’t work for you, try this 4-week meal plan that includes 28 dinner meals, ingredients lists, and shopping lists. Most meals can be prepared in 30 minutes and are healthy and delicious!

These are just a few simple ways to reduce debt today. If you follow these six tips, you will be on your way to financial freedom. If you’re curious about how you will maintain a debt-free lifestyle, check out this article about living a minimalistic lifestyle to see if it’s right for you.

What steps do you take to reduce your debt?

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