When it comes to paying off debt many readers out there are interested in the following question:
How do I pay off debt with the income I have right now?
The reason that this question is so popular is because most personal finance advice suggests that you find a way to earn more money. While I myself am a firm believer in earning more money, I do understand why some readers want to figure out how to pay off their debt with the income that they currently have. Some of us simply don’t have the time to work more hours or want to figure out how to be savvy enough to survive on one income.
Let’s look at some ways you can pay off debt with the income you have:
Delay your spending.
Whenever I need to save money hardcore style I start to delay spending in certain areas. I will get my hair cut less frequently or eat out less often. Is there any spending or a specific purchase that you can delay? Can you delay that car purchase a few months? Perhaps you could post-pone that tropical vacation until you manage to pay off more of your debt? All that I’m saying is that sometimes you might have to delay spending if you want to pay off your debt with the income that you currently earn.
Cut out just one thing.
I don’t want you to live a miserable life where you stay home and play board games all day. Anyone that suggests this needs to wake up and start living in the real world. I just think that you can easily find one thing to cut from your spending routine. I know that if I ever needed to aggressively pay off debt I would stop driving or downgrade my cell phone package. The thing is that often we have money that we can pull out of our current financial situations. We all have routines and purchases that could be cut when paying off debt becomes a priority.
Stop using your credit cards.
Once you see your debt going down, the temptation creeps up again to start spending to reward yourself for your effort. That’s the major problem. You need to find a way to stop using your credit card for useless purchases when you’re trying to pay off your debt. How you do this is up to you. You can try freezing your credit card or giving to a relative that you trust to hold. As long as you don’t cancel your credit card. This is a short-sighted solution and it could damage your credit score. If you want to use your current income to pay off your debt, then you need to get serious about not using your credit cards.
How did the readers get out of debt quickly?
I asked you guys to see how you got out of debt quickly or how you plan for purchases. I wanted to share the one of the responses here.
Kristy chimed in on saving money:
One that really works for me is keeping a picture of something I want to buy in my wallet. Right now, my debit card has a picture of a car I’d really like to buy on it, so whenever I pull it out I see that car! It’s stopped me from several spending sprees haha.
Another thing I’ve learned to do is to write what I want down in a text document or a notebook (whichever is more convenient), then forget about it and distract myself for awhile. Then I go back and look at what I’ve written down and ask myself if I really want to make the purchase. If I do, then I’ll add a plan of how I’m going to save up for it rather than running out and buying it right then.
Have you guys had any luck with paying off debt the income you already have?