Budgeting and dealing with debt can be a struggle. I have some tips for creating a budget and paying down your debt.*
First, identify and track how you're currently spending your money. Take advantage of free online tools or mobile apps to help make budgeting simpler and identify where you need to make changes.
Next, set your financial goals and refine your budget to meet those goals. Continue to track your spending to make sure you're staying within your budget.
Start Small
Once you've created your budget and know where your money is going, it's time to start paying down your debt. A good tactic for dealing with debt is Dave Ramsey's Debt Snowball Plan.
The plan works by focusing on one small, manageable debt at a time. Here are some tips to implement this plan:
Make a list of all your debts and the balance owed, from smallest to largest.
Pay off the smallest debt first. Make minimum payments on all your other debts and funnel the rest of your extra funds into the smallest debt.
Each time you pay a debt in full, work on the next smallest debt on your list.
Continue this program until you reach the last debt on your list.
Know how it feels to live debt-free!
By starting with your smaller debts, you’ll see results quickly, which will help motivate you to keep going. You'll be surprised by how much progress you can make in a short amount of time!
If you have any questions or would like me to refer you to a financial advisor, just let me know. I'm happy to help!
*We are not a credit counseling or financial advisement firm. This information is for educational purposes only and is not to be taken as guidelines or guarantees to improve your credit or financial situation.
