Budgeting to Make Paying Off Debts Easier


By: Ashley Cairns

While we all like to pretend that we don’t have it, debt is something we carry with us on each day of our lives. Without a doubt, debt is one of the biggest strangleholds on a happy and healthy lifestyle. If you are looking to find some genuine financial freedom, then it does make sense to focus on paying off debts ASAP.

But how can you manage debt and ensure that you can be budgeting your money for the best long-term impact? What is the secret to budgeting your money to handle debt pay-off long-term? 

partner agreement

Working with your partner

Assuming you are living with someone else, it makes sense for you all to come up with an agreement to beat back the debt at the door. I recommend that you try and make this a priority; the sooner you can all have an agreement, the easier it is to work together and beat the debt. It also means that there is accountability, meaning everyone has to stay true to the plan.


Get ready to compromise

I know that you probably like having some nice extras at home, such as streaming services, but you might need to find some personal compromise. I recommend looking at the most extreme side of your personal spending; is it fashion? Technology? Sport? Travel?

Whatever it is, you need to find a compromise. To make paying off debts faster, try to cut your personal spending budget by anything from 25-40%; use that money on debt payments instead.


Use your time to bring in more income

If you find it hard to make your debt paying and budgeting possible, try and use the spare time that you have. For every hour you sit on the sofa worrying, you could be spending that time doing something constructive. This comes down to what you are good at.

Are you crafty? Then make items and sell them on platforms like Etsy. Are you a good educator? Then invest some time into tutoring someone on your chosen subject. You have many ways that you can make money online in your spare time, either selling items or offering your services.

paying debt

Invest in the debt snowball method

I recommend that you try this as soon as you can – it could be a life-saver for some. The process is simple – you list all of your debts from smallest to largest. You pay the bare minimum on all debts apart from the smallest. You pay the maximum that you can afford on that singular debt, getting rid of it faster and thus freeing up more cash to add to the next debt.


Commit to paying off debts – give up something important

What is your primary and most expensive habit? Then it might be time to curb or drop it altogether. For some of us, it is cigarettes. For others, it will be sugary snacks. Find something that you know you spend more on than you should because you want to and commit to either eradicating it entirely or cutting your spending on that by at least 50%.

Why? Because you have now made a major commitment. As soon as we majorly commit to something, we are much more likely to stick to it and actually deliver positive results over time.

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