65%.

That’s how many Americans question if they’ll ever get out of debt, according to a poll by CreditCards.com.

The thought of having to radically change your lifestyle to get out of debt is a pretty tough pill to swallow, and most people question if they can really do it.

The good news is, getting rid of your debt doesn’t require overhauling your life.

via GIPHY

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easiest way to get out of debt

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Believe it or not, paying off all your debt is probably much easier than you think. There’s only two steps you need to do, and 97.5% of Americans are already doing one of them. If you feel like you’ll never get out of debt, read on because we’re about to change your mind.

In this post, you’ll learn:

  • What you’re already doing that’s got you on track to paying off your debt
  • The only other secret you need to know to be done with debt

TAKE ACTION:

  • Gather all your debt totals together
  • Ban yourself from using any more borrowed money
  • Watch your debt make it’s way down to zero!

debt snowball worksheet tracker printable

WANT A FREE DEBT SNOWBALL WORKSHEET?

Get your fillable printable:

  • Track debt amounts
  • Log minimum payments
  • Determine how to apply extra payments
  • Slash your debt

How to get out of credit card debt

Debt is exhausting. You already know that, which is why you want to ditch it so badly. You’re just worried you don’t have what it takes to get there and constantly wondering why it’s so hard to save money instead.

For some reason, there’s a common assumption that you can only get out debt if you’re willing to live like a broke college student and eat ramen everyday. People picture massive budgeting spreadsheets and trying to live on pennies a day.

But getting out of debt only requires two moves, one of which you’ve probably already been making for years.

#1) Always pay at least the minimum payment
It is 100% possible to get out of debt just by making the minimum payments and doing one other thing.

WHEN TO AVOID:

This two-step system we are covering won’t work for debts where the minimum payment due is for interest only.

Avoid those types of debt like the plague.

If you already owe on any type of interest-only arrangement, always pay more than the interest accrued otherwise you’ll never be free from that debt.

The good news is that most people have this first step down pat.

According to Magnify Money (a site run by Lending Tree), only 2.5% of Americans are delinquent on their credit cards.

That means they got reported to a credit bureau, typically because they’ve missed making the minimum payment by more than 30 days.

In other words, a huge majority of Americans do pay at least the minimum due every month on their credit cards. The chances are pretty good that they’re probably able to do the same for most of their other debts too.

If you can swing at least the minimum payment for all your debts like your mortgage and car payment too, as hard as it may be to believe, you are already halfway there to being able to eventually pay off all of your debt.

#2) Stop using debt
Step two is another shockingly simple concept: Just stop borrowing more money.

Seriously, that’s it.

If your only goal is to be debt-free, all it takes is keeping up with your minimum payments and not taking on any more debt.

If you’re skeptical, think about it for a sec. If you stop using your credit cards and don’t take out any more money on loans, all you have to do is pay of the debt you have. Continue making your minimum payments, you’ll eventually do just that and be left with a zero balance.

WHEN TO AVOID:

It’s worth mentioning again: This two-step system we are covering won’t work for debts where the minimum payment due is for interest only.

Avoid those types of debt like the plague.

If you already owe on any type of interest-only arrangement, always pay more than the interest accrued otherwise you’ll never be free from that debt.

Now, we fully acknowledge that paying off your debt this way does take some time, and you will pay a hefty share of interest over the terms of all your debts.

But we’re all about sharing financial ideas that most people don’t think about, and we think that it’s worth pointing this all out for two big reasons.

First, most people are surprised to hear that it’s a lot easier than they thought.

“Make huge lifestyle changes” is a way harder challenge then “stop using your credit cards and lines of credit anymore.” When we share this concept, many people are happy to realize that being debt-free is not as unachievable as they had previously thought.

Second, it’s super encouraging to learn that you’re already 50% of the way there.

It’s always hardest to get motivated when you’re starting from scratch, because it feels like there’s so much work ahead of you.

But if you know that you’re already doing one of two steps, then it feels like all you have left is one last step to go!

via GIPHY

Compared to what most people envision about what it takes to get out of debt, what we’ve said above seems way more doable.

debt snowball worksheet tracker printable

WANT A FREE DEBT SNOWBALL WORKSHEET?

Get your fillable printable:

  • Track debt amounts
  • Log minimum payments
  • Determine how to apply extra payments
  • Slash your debt

You’ve Got This

Now that you know you’re already on the path to being debt-free zone, the only question left is how fast do you wanna get there.

Being relieved of your debt is an incredible feeling, so we 1000% encourage you to make any extra payments you can no matter how small they are. The more you are willing to pay towards your balances, the faster you’ll reach that debt-free finish line.

LEVEL UP:

Becoming debt free does feel as wonderful as it sounds.

Get a fast past to the front of the debt-free line by paying more than your minimum payment, so that less of your money gets gobbled up by interest.

How do I avoid the temptation to use debt again?

If you’ve made it this far, that means you’re at least hopeful that you’ll eventually be able to say you’re debt-free.

But you might be legitimately concerned that your willpower to avoid using your credit cards or borrowing more money won’t last since you’re always wondering why you’re broke even though you know you’re making decent money.

Experience has taught us that when it comes to your financial weaknesses, if you can’t beat ‘em, sidestep ‘em.

The toughest temptation to overcome is probably credit cards because of how readily available they are.

We recommend making it really inconvenient to use them by trying any or all of the suggestions below. As silly as they might sound, we are totally serious about them and only care that it helps you reach your goal of banishing your debt.

  • Delete any saved credit card information on any websites you shop at
  • Put your credit cards in a sealed envelope
  • Duct tape the envelope
  • Put it the envelope in a small box and duct tape that too
  • Write any of these on the envelope to remind yourself not to give in:
    • “Are you sure you want to do this?”
    • “You were already halfway there…”
    • “Is staying in debt what you want for you and your family?”
    • “Is what you’re buying going to spark joy for you?”
    • “Is it worth paying more than double for it?” (since you’ll be hit with that much interest if you just pay the minimum payments)
    • “I’d rather be debt-free!”
    • (draw a sad face)
    • (any saying of your choice that will hit home for you)
  • Lock up the credit cards someplace inconvenient to get to, such as inside a safe
  • Freeze your credit cards in a block of ice

Make it a point to immediately shred any loan or credit card offers you get in the mail. If you leave them lying around, you’re more likely to fall prey to their marketing tactics.

Put reminders anywhere you can to keep you focused on your goal of becoming debt-free, using any of the messages we listed above:

  • On your fridge
  • On a Post-It inside your front door
  • As the screensaver on your computer
  • On the lock screen of your mobile devices

Tell a friend about your goal to stop using your credit cards, and ask them to check with you frequently to see if you’ve given in. Give them permission to give you a hard time if you fall off the track.

Consider paying with everything in cash just to ensure you are only spending what you actually have and not living on borrowed money.

Replace shopping with a new, cheap hobby (ex: reading free books from the library).

Remember, it only takes two steps to guarantee you’ll be debt-free, so you’ve got this!

Conclusion

Learn how to get out of debt easily, with only two simple steps (one of which you are probably already doing!). As long as you pay your minimum payments and stop using any more debt, you’ll eventually pay off your debt completely. Learn the easiest way to become debt-free, without having to make any sacrifices or huge lifestyle changes.

TAKE ACTION:

  • Gather all your debt totals together
  • Ban yourself from using any more borrowed money
  • Watch your debt make it’s way down to zero!

SPREAD THE WEALTH! SHARE THIS POST!

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