- Write a list of who you owe money to and how much — with the smallest debt at the top of the list and work down towards the biggest.
- Live off cash and your ATM card/debit card — no more credit allowed. This quarantines the debt.
- Do a budget.
- Set minimum repayment plans for each debt — factor this in to your budget.
- Review your budget to look for things that you can cut out or down to pay off debt — proactively put those savings towards the extra repayments of that debt, so that you pay it off faster.
- Get a ‘side hustle’ — look for ways to bring in extra cash and income that you can use towards the debt.
Make a budget
- Keep track of everything you buy, from groceries to a daily cup of coffee
- Keep a copy of bills you pay during this time
- Divide your expenses into two categories: “needs” and “wants”
To stick to your budget
- limit your spending as much as possible to what is in your budget
- keep receipts and bills
- list your income and expenses
- compare your budget to what you actually spend at the end of each month
From Canna Campbell