How to Get Rid of Debt in One Year

Are you currently looking at a list of debt that you owe and wondering how you're going to pay it off? Are you searching for ways to get rid of your debt fast? You don't have to look any further. There are a few steps that you can take to ensure you are debt free within one year. Many individuals are now able to get rid of their debt that has accrued over time in one year or less just by making a few simple changes. Some couples may have inquired their debt from overspending their needs, accruing medical expenses, and other expenses that were unavoidable. It has been proven that a couple can get rid of debt as high as $50,000 in a years time just by cutting back on unnecessary expenses and wants. Learning how to get rid of the unwanted debt is simple, you simply have to learn to live on less expenses for a period of time. This will help you reach the goal you desire. 

The first step to take is to make a commitment to yourself. This commitment is going to guarantee that you do not use credit any longer for your purchases. If you need to make a bill payment or purchase something, you will need to only use cash or your debit card linked to your bank account. Credit is no longer going to be an option for you to use. 

You will need to make a list of all the debt that you owe. You can prioritize this list to what needs to be paid off first. When you have your list made, you will need to calculate the total amount due for all the items listed. You will take the total amount due and divide it by 12 to see what the monthly amount is you will need to contribute to that debt for an entire year. 

Do you have liquid assets? Liquid assets are items around your home that hold value. You don't have to sell or get rid of these items in order to pay off your debt. However, it is a great idea to know how much your liquid asset is worth in case you needed to take a different route to get rid of the debt faster. 

In order to help figure out how you are going to make your monthly contribution to your debt list, you will need to figure out how much money you earn from your job or other types of sources. You may need to consider working more hours and putting in overtime to help you pay off the debt within the goal amount time you set. When you are able to work more hours, you will be able to put the extra earnings towards the debt you owe and help knock it down faster. 

After figuring out the debt that you owe, you will also need to figure out the monthly expenses you have. This is a great opportunity to cut out expenses you don't need. Some expenses such as cable, entertainment, new cloths, trips, eating out, and shopping for items unneeded will need to be stopped for the entire year for you to be successful at hitting your goal. Absolutely do not spend money on items that you do not need. This is where you will need to control every penny you receive and not treat yourself to anything for one year. 

If you find that you need to cut even more expenses to save more money, there are other options available. You may need to sell some items around your home that you are not using. Items you are not using can be sold online or by having a garage sale. If you find that your home is to expensive, you may need to find another home that will be at a cheaper cost for you. Some individuals will even stay with family members to help cut out all major expenses to help pay off their debt sooner. 

It's a great idea to track all the expenses you do spend money on such as: monthly bills, groceries, needed household items, and anything else you spend cash on. You can track these expenses by keeping receipts and making a log using a computer software program. You will be able to keep an updated status on your money easier and ensure that your debt free after the one year goal you set. 

When you are trying to reach a goal, it is important to keep a good mindset on the matter. This way you can look at cutting expenses as a positive impact in your life. When you reach your goal, you will feel accomplished and have an opportunity to start over with your credit. You will even learn how to budget your living expenses from now on.
Read 5426 times