Destroy Debt: 13 Methods
Get focused and start shredding your debts
We’re more comfortable with debt than ever, which is why most Americans carry it for their entire lives.
People who are stressed out about their debt shouldn’t be, though.
Do you know why?
Because they’re most likely voluntarily buying their way further into debt.
It’s a decision.
We have a choice to make every time we get paid, and every time the opportunity presents itself to spend money, we can handle our money correctly, or we can drive ourselves to the ground by buying our way into more debt.
People in debt frequently dine out, buy materialistic items they can’t afford, continue taking out unnecessary student loans, drive cars they can’t afford, take out mortgages way above their means, and continually spiral into addictive consumption.
It’s as if people could give two f*cks about their financial health because they equate living to accumulating things that don’t matter.
The rich will always rule over the poor, and every time we put ourselves further into debt, we put ourselves under the rich’s hands. We’re actively choosing financial enslavement.
10 Ways To Get Out Of Debt:
1. Quit dining out so often.
Dining out is one of the largest voluntary expenses.
2. Stop maxing out your credit cards.
Maxing out credit cards is not productive if you don’t have the means to pay it back.
3. Keep your expenses extremely low.
The lower your expenses, the more freedom you have.
4. Always maintain more than one income source.
Don’t put all your eggs in one basket.
5. Stop buying food that you end up wasting.
If you aren’t going to eat it, don’t buy it. Avoid consistently buying more food than you’ll consume.
6. Consistently increase your income to decrease your expense ratio.
Never stop increasing the amount of income you reel in.
7. Downsize your lifestyle to cut costs by extreme amounts.
Temporarily cut down your lifestyle to increase your disposable income and eradicate debt.
8. If you struggle to use your credit card responsibly, don’t use them, period.
You can get by without a credit card.
9. Stop getting more degrees that you can’t afford.
If you can’t pay cash or get scholarships, take a knee and earn some money so you don’t have to pay student loans for the rest of your life.
10. Don’t buy a car if you can’t afford to pay cash for it outright.
If you decide to take out a car note, always have the cash in your account to buy your car. Never go into debt to buy a car. There are too many opportunities for low-cost transportation these days.
11. Once you buy the latest fashion or shoes, another one comes.
You’ll always be on a never-ending train of buying “what’s new.”
Cut the cord, so you don’t have to overwhelm your house and debt-to-income ratio over fashion.
I know it means a lot to folks these days, but come on.
Are we really going into debt over clothes and shoes? Not worth it.
Someone asked me, “Are those the only jeans you have?” My response was, “Basically. Your point?”
Did I change my wardrobe after the comment was made? No. I didn’t buy any more new jeans until years later.
12. Stop trying to impress people you know and people you don’t know.
Impress yourself by stacking your money and buying things because you can afford them instead of buying things because you want people to think you can afford them. There’s a big difference.
13. Quit subscriptions
You likely have subscriptions you can cancel because you don’t need, want, or use them. Cancel as many subscriptions as you can to increase your disposable income and the amount of money you have leftover every month to pay down debt.
Closing Thoughts
Debt always catches up with you.
There will always be an underlying stress level in the back of your mind because you owe someone at the end of the day.
There are masterful ways to utilize debt to build wealth, but most people opt out of this strategy and instead choose to accumulate debt.
You can change this dynamic.
We don’t have to cozy up to inessential debt. We can live within our means until we expand our means to afford the things we want to buy — within reason (too much accumulation leads to a dead-end road).
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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
As always thanks for your words of wisdom. I just want to comment on #10 pay cash for a car. You can buy a good car with reasonable payments. But keep it forever. I still have my 2001 Buick century with 103,000 miles its still going strong.
I'll add to #2 - stop using credit cards. Don't know if it's possible in the US. Here in Europe, I don't use them at all.