With the coronavirus hitting the world in 2020, it became even harder for a lot of people to get out of debt. The economic dip brought by the pandemic might have forced you to spend emergency funds or borrow more money. And as we try to start our lives anew this 2021, you’re probably thinking about how you can now deflate this debt balloon.

The good news is, we’re here to help you with that. Whether you want to pay off your old debts or prevent new ones, these easy tips will guide you to get back on track towards your financial goals.

Why Would You Want to Get Out of Debt?

People sometimes get attached to the comfort that debt brings. But here’s the truth: debt drastically affects different aspects of your financial life, including your credit scores.

It’s also harder to save up when a huge part of your money goes to your recurring bills and even paying interests. But when you become debt-free, you take one step closer to financial freedom. You finally become in charge of your money again and be able to put more of it in your savings, investments, or emergency funds. More importantly, wouldn’t it feel great to have one less thing to worry about every month?

Easy Ways to Get Out of Debt Fast

Without further ado, here are nine practical tips on how to become debt-free in no time.

Start with a debt list

The journey to becoming debt-free always starts with a plan. In this case, it’s a debt list. Make a detailed list of your debts, including due dates, monthly payment amounts, interest rates, creditor name, and the total amount of debts.

Write them on an excel sheet instead of paper, get a template or install a debt tracking app; whatever’s the most convenient for you. Don’t forget to check and update these lists as you make payments, too.

If you know where your money goes every month, it reminds you of your total debt and helps you pay them on time. Your list will also help you figure out how to attack your debts and eliminate them.

It’s all about budgets

Getting out of your debts is all about making budgets that realistically reflect your projected expense limit, the list of your debts, your payment priorities, and your net income (gross income less your monthly necessities such as groceries, electric and water bills, etc.). From there, you can apply a debt reduction strategy that works for you.

You can also take a look at two of the most popular strategies of debt payment:

• The avalanche method - This method works by making minimum payments on all your debts and using all your extra funds to pay off the debt with the highest interest first.
• The snowball method - This method’s rule is to make minimum payments on all your debts while focusing on paying off the smallest debts first.

Just remember that it really takes a while to get used to a budget, so failing the first time should not be your cue to give up.

List every single thing down

Listing sounds easy, right? Well, it’s even easier to forget jotting down a dollar of expense. But when it comes to getting rid of your debts, every penny is important.

List every inflow or outflow of money down to the smallest expenses. Categorize and organize them. This way, you have a list to compare your budget.

The less dine-ins and takeouts, the better

We know how much easier it is to go to a restaurant or order delivered meals instead of making them yourself. But you might not notice how much this convenience is costing you, like all small purchases do.

As the common alternative, try cooking dinner even once, and who knows, you might fall in love with preparing your meals. Start out by searching the internet for the easiest dishes to prepare if you’re not fond of cooking. Schedule takeout days and home meal days so you can gradually transition or just balance getting what you want while cutting costs.

No shopping list, no entry

Forget about even entering the grocery store without a shopping list. It’s easy to breach your budget limit by adding items to your cart impulsively. You can use your phone’s note app to make a checklist of things you’ll need based on how often you shop.

If you find yourself throwing unlisted items in your cart often, maybe it’s time for you to try online grocery shopping. This way, you can just search for your items, check out, and pick them up or have them delivered without getting sidetracked to the snacks aisles.

Sell your skills and start a side hustle

One of the easiest ways to increase your income streams is finding out what you’re good at and making money out of it. It can also be something you can easily do in your free time.

For starters, you can apply as a Lyft driver or a delivery person for a food services company such as Grab. Just remember to stay practical about side hustles and make sure they don’t interfere with your regular job.

Websites such as Fiverr and Upwork serve as a platform for freelancers who specialize in virtual assistance, graphic design, website creation, content creation, and many other skills. It’s easy to sign up and start earning as long as you have a steady internet connection and a functional computer or laptop.

Pretend to be poor as you work to be rich

Just because you can afford something doesn’t mean you’ll buy it. One of the most common mindsets you can practice is living below your means. This can be as simple as skipping a few dollars worth of coffee from your favorite cafe and instead brewing one yourself at home.

Always creatively think of ways you can spend less than what you can actually afford. Never mind what others think of you. The only thing that matters is that with this mindset, you can build healthy habits that make you save more money in the long run.

Get rid of your credit cards

Maintaining credit cards is a convenient and addicting financial habit that often leads you to spend more than you can afford. Sure, it can help build up your credit score, but only if you stay smart about them. You can do this by using credit cards for their reward points while keeping your credit utilization rate as low as possible.

Everyone will tell you that the key to maintaining a good credit card standing is paying off the entire credit card balance by the due date every month. And that’s basically it. With your balance fully paid, you’d be able to get credit card rewards, but the credit card company won’t charge you any interest for that month.

Free yourself from comparison

If you don’t like playing a game you can only lose, why would you keep on comparing yourself with anyone? It doesn’t matter if your neighbors or friends are starting to loan for houses or cars.

Focus on what you can do with what you have. As we’ve said, no one ever wins at comparisons: you can only underestimate or overestimate yourself by doing so. And both will not help you be financially secure or debt-free.

Into a debt-free life

These tips are here to guide you, but your life won’t change until you take the first step. Start your journey towards a debt-free life today. And remember, your efforts are only helpful as long as you stick to them and stay consistent.

Build discipline around your habits, and always have a vision of what you want to be: be it a relaxed, financially secure person enjoying their vacations or an extremely rich entrepreneur chilling in your private jet.