Are you having trouble keeping up with your bills? Are you asking yourself “How can I pay off debt if I live paycheck to paycheck every month?” You’re not alone.
Debt is something that the vast majority of America deals with. While in the past the idea of being in debt was much more taboo, it’s become the new “normal” in past years as interest rates have skyrocketed and the cost of living has grown. Between home loans, school loans, medical bills, and personal loans, debt weighs on the minds of about 80% of Americans.
The pressure of owing money and not knowing how you’ll pay it back can get incredibly stressful, but there is hope for anyone who feels like they are on the debt treadmill. With healthy money management, just about anyone can get out of debt responsibly.
What You Can Do to Get Out of Debt
Being informed is one of the best ways to practice healthy spending habits, so while you learn everything you can about money management, remember these important tips:
Decide to Get Out of Debt
Before you frantically start looking for get-rich-fast schemes or declaring bankruptcy, take a breath. Debt is common, temporary, and almost always entirely in your hands. The first step is to decide that you are going to work towards eliminating your debt. This means that things may not be easy over the new few months or years, but you can do it. A positive mentality is one of the best motivators, and if you want to free yourself from debt, you’ll need all the good vibes you can get.
Live Within Your Means
Nobody likes to change their lifestyle, but in many cases, those living a lavish life are in debt because of their lifestyle. Debt accumulates because you spend more than you earn. To fix it, you need to increase your income or decrease your expenses.
To do this, you can do something such as picking up a second job or selling some things you no longer need for cash towards the “debt fund” or limiting the amount you spend on things like food or entertainment. By brewing your own coffee in the morning, you can save a few hundred dollars a year. Packing lunches rather than going out can double those savings as well, giving you a few free monthly payments on your bills for very little compromise.
How the Right Debt Consolidation Company Can Help You Eliminate Debt
If you’re feeling overwhelmed by your debt and don’t know where to begin, turn to a trusted debt consolidation team to get you on the right track. They’ll help you to:
Organize Your Budget
As we stated earlier, your debt grows when you spend more than you earn or put towards bills. The best way to reverse that is to track where your money is coming from, going, and how you can change that to put you in the black.
A debt consolidation company can help by analyzing your finances and organizing the information that you need to know. If you’re a 9-5 worker and have reliable income, this allows you to build a “zero-sum” budget every week or month that shows you where you’ll break even. By taking realistic estimates of what you spend on various bills or luxuries, you can see how those expenses stack up against your earnings. This also allows you to see where you can cut back – and just how to do it.
Do you owe debts to more than one company? Is it hard to keep track of payments, interest, balances, and more for each individual account you own? Consolidating your debts turns all that extra headache and organization into a single account, balance, and payment.
Debt consolidation pays your creditors the lump sum that they are owed so that those accounts are balanced. They will then begin a new agreement with you (often with a better interest rate) that you can focus on rather than the tons of bills coming in the mail every month.
Setup a Payment Plan
Are you between jobs or waiting on money from a settlement or annuity to come in? If you aren’t paying your bills while you wait, you’re probably accruing interest that will cost you more in the end. You can also be hurting your credit score, making it harder to qualify for future loans or refinancing offers.
With the help of a debt consolidation company, you can organize a payment plan to ensure that the creditor is paid a smaller sum every month rather than nothing at all. This can often lead to interest-free payments for a specific amount of time, allowing you to get back ahead of your bills when you have income again.
Moving Towards Financial Freedom with a Debt Consolidation Company
Being in debt can be stressful and costly, so getting out as soon as possible is incredibly important to your mental and financial health. With the help of the tips we’ve provided above and the guidance of an expert debt consolidation company, you can stop asking yourself, “can I pay off debt if I live paycheck to paycheck?” and instead answer “yes I can”.
Christian Debt Counselors can be the financial and spiritual guide you need to get out of debt. With more than a decade of experience helping to stop collection calls, stop accumulating interest, and live debt-free, the debt experts at Christian Debt Counselors provide a spiritual perspective on achieving financial independence that you won’t find elsewhere. If you’re in debt and want to get out, consider our debt consolidation & debt settlement services so that you can move on from your financial past.