How to get out of debt

Personal Finance

When the cost of living is high, it's much easier to get yourself into debt. Especially as a Canadian. None of us want to be in debt but we all want to be out of debt. In this post I will share tips on how to get out of debt.

Start a budget

Starting a budget is important so that you know where your money is coming from and where it's going. When you make more than enough money and have no debts, it's easy to spend without thinking and never look at your bank account. In order to save money and get out of debt, you should closely monitor your spending habits to familiarize yourself and adjust accordingly.

Control your spending in every aspect. If you are bad at controlling your spending, try moving your money into a separate bank account where access to it takes more effort. Set aside a set amount dedicated to your debt every time you get paid even if it's just $5 to start.

Cut out subscriptions

Subscriptions are another cost people don't think about but it does add up. Netflix, Music, Apps, Gym and other subcriptions should be cancelled or at least postponed until you get yourself out of debt. Use a free version or free trial instead where you can if you can't pass up a certain subscription or membership.

Eat out less

Eating out can definitely be overlooked but it's one of those things that add up faster than you think. Avoid eating out at all or at least cut down significantly. Meal prep at home or grow some of your own produce to cut down on foods you buy often.

Lower premiums

There might be options for you to lower your premiums for insurances or other necessary monthly bills. Look over any contracts or coverages and lower the costs where you can.

Save where you can

Using coupons where you can and buying items when they are on sale can help your save more money in the long run. You can also sign up for points cards which will help you save when you shop at the same place regularly.

Increase your income

Obviously increasing your income can help you save more and pay off your debts. This can be done by getting an additional job or even asking for a raise at your current workplace if applicable. There are tons of ways to increase your income passively or from home.

Saving money and paying off your debts will take time but stick with all these tips and slowly you will see yourself rise above your debt!

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