3 Easy Tips On How To Reduce Your Debt

Hi loves! Recently, a lot of my clients and friend have been asking for tips on how to reduce your debt. So today, I’d figured to help everyone by 3 easy tips to help get you started to reduce your debt. We all have some type of debt, whether it is credit card debt, student loans, or even fixed loans like a car or mortgage.

You might be looking to move out and need to save cash? You could be trying to save for a down payment on a house. Maybe you want to travel and enjoy life but have this annoying payment to make every month. So what do we do? How can we try to not have that huge debt? Here are my easy tips on how to reduce your debt.

I would also recommend sitting down with your financial advisor to make more customizable plan directly for your needs. These tips are to get you start and very generic to almost all types of people. Speaking one-on-one with a financial advisor will provide a more detailed approach.

Create A Plan

My first tip is to create a plan and timeline. Is it feasible to pay off your credit card debt before you move in? If you’re moving into a new place in two months probably not, but if it’s in 6 months. That’s doable. You have to give yourself a reasonable timeline and set out a plan. Don’t try to do too much because 8 times out of 10, those plans fail. Start small and just be consistent.

That means maybe you can’t go out drinking every weekend, maybe you have to be more strict with spending money on things like food or coffee. Eating out everyday for lunch adds up why not bring food from home. Now you’ll meal prep and make coffee at home instead of spending the $6.00 at Starbucks DAILY. That extra money goes to your debt. A little goes a long way, don’t think differently.

Be Open About It

How to reduce your debt? Don’t hide you’re trying to pay off your debt. I had clients who want to pay off their credit cards or student loans but yet go out every weekend because their friends “make them.” They feel like they aren’t cool if they stay home. Just be open and honest, your friends and family will understand and proudly support you. If not, well honestly, they aren’t your true friends.

Sometimes, manifesting things out publicly helps them happen and keeps you on track. You don’t have stay home every weekend and never leave the house but just go out once a month instead of every weekend. Be smart. Be transparent about your decision and do it.

Stick To The Plan

This part is probably the hardest. And I can totally relate, I don’t have any plans to move out or buy a home just yet, so for me I just tend to spend. I can easily pay it all off but then I spend it again and buy that travel ticket. Right now, I’m trying to pay off my credit card off completely, then start saving more money. So for me, I just have to stick to my plan and not spend.

Not go out as much, not book that flight, and it is TRULY HARD. I made my plan and by June I should have my card completely paid off without having to limit myself from going out. Once you make your plan, write down the days you’ll be making payments and MAKE THEM. Stick with your plan, limit yourself from frivolous spending, and learn to save.

XOXO

Karen Giuliana