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Forbes
Forbes
Business
Melissa Houston, Contributor

How To Get Out Of Debt Fast In 4 Easy Steps

Carrying debt can be a heavy burden, especially when it feels like there is no way out. Debt is expensive as your interest expense increases, and you feel like you’ll never get ahead. But getting out of debt is possible and knowing how to get out of debt is a crucial part of the journey.

If you feel alone in your debt story, you’re not. According to Experian, the total average debt load is $92,727, which has increased from prior years.

How debt affects you

Debt is stressful, and that stress can have adverse effects on your physical and mental health, hurt relationships with your partner, and leave you feeling helpless. You will perpetuate these feelings and lifestyles by ignoring the debt, but you will get financial freedom when you are ready to get out of debt.

How to get out of debt. getty

Why you need to get out of debt

On the other side of debt is financial security and freedom. You will lose the nights of worrying about how you will pay your bills or if you’ll lose your house, and that energy will be put towards positive things in your life. Living your life will be more joyful because debt robs you of enjoying your life thoroughly.

Here are the steps to follow to get yourself out of debt:

1. Create a budget

The first step in debt repayment is by creating a personal budget. It would be best to stop spending more than what you bring in, and budgeting will show you how to manage your finances.

You need to factor your debt repayment plan into your budget and practice good spending habits. Stop spending money you don’t have and put those credit cards away.

2. Create a debt repayment plan

Adding up the debt owing can be one of the scariest steps on your debt repayment journey. It’s easy to hide from the actual number, but you need to face your debt and get honest about the numbers. You need to know the outstanding balance on each credit card and loan, the interest rate, and the minimum monthly payment. It would be best if you created a debt repayment plan.

Use a debt repayment spreadsheet to help you calculate your debt repayment schedule. It will help you calculate your monthly repayment schedule and show you how long it will take to repay the debt.

My goals and financial freedom written on a blackboard. getty

3. Find ways to make extra money

There are several ways you can find extra money to put towards that debt. The sooner you pay off that debt, the sooner you can start saving your money and getting ahead financially. Do you have items sitting around the house that you don’t use and can sell? Do you have extra time that you can pick up a side hustle to bring in more money? Maybe even a hobby that you can monetize. There are many options for bringing in extra money, you need to get creative.

4. Stick to the plan

You need to be in the debt repayment game for the long haul. It’s hard work and requires discipline, and there will be days when you feel like you’ll never get there. But rest assured, you will get there. It takes time, discipline, and patience. But once you get to the other side of debt, where you are debt-free, you will not regret the hard work it took you to get there. Carrying debt is exhausting and unpleasant.

The bottom line is that debt weighs you down. You need to get that debt paid off and move on with your life. When you are in a better place financially, you can build your wealth and get your money working for you. Becoming wealthy is about making smart financial choices and managing your money well. It’s not how much money you make that determines how rich you are; it’s how you handle the money that makes you rich.

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