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Making a strategy for paying off your debt is the first step toward getting out of debt, but there are other things you can do to make the process easier.

Having good money habits will help you get out of debt and make your finances better overall. Not sure how to change your habits? Try one of these ways to get out of debt. They will work for everyone, no matter how much debt they have.

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1. Make and follow a budget

Setting up a budget creates a strong base for your finances. A budget can help you control your spending and give you a better understanding of how much money comes in and goes out each month. You can find places where you can save money by carefully examining it; you can then utilize this "extra" money to pay off debt more quickly.

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Check out our FREE budget spreadsheet to make your budgeting life easier.

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We have other free resources on our website, please feel free to check them out!

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2. Put money away for emergencies

Having a reserve for emergencies is a must if you want to stay out of debt. If you don't have an emergency fund, you could have to use credit cards or borrow money to pay for unforeseen costs. Which will rake in that debt pretty fast.

Even while it's necessary to set priorities for your debt payments, you don't have to pick between paying off debt and conserving money. Even if you don't have much money left over after paying your bills and other costs, you can and should do both.

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Here's how to set up an emergency fund.

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3. Pay additional amounts

The secret to reducing your interest costs and paying off your debt years earlier is to make additional payments. Instead of distributing larger payments randomly across all your debts, it is more effective to use a plan like the debt snowball or debt avalanche. Both debt-payoff strategies demand you to pay off a target debt in full at once while only making the minimum payments on your other debts. Your target debt in the debt snowball strategy is the one with the lowest balance. On the other hand, the debt avalanche focuses on the debt with the highest interest rate.

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Here is a clear breakdown of the two methods:

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You don't have to stick with one approach for the duration of your debt payback plan. There are other options available to you. For example, if you want to cut down on the total amount of interest that you'll have to pay, you may begin by paying off a few minor balances using the debt snowball method, and then switch to the debt avalanche method for the rest of your debt. When you make additional payments toward your debt, the process of paying it off is sped up since the additional payments bring your balance down a lot more quickly. Think about putting at least some of any extra cash, such as a bonus or a tax refund, toward paying down your outstanding debts.

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‍4. Earn More Money

If you have a tight budget and find it hard to put extra money toward debt payments each month, you might want to think about getting a raise so you can pay off more debt. Even though it isn't always possible, there are some things you can do to get closer to your goal. For example:

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‍Think about asking for a pay raise

If you've been doing a good job at work and it's been a while since you got a raise, you might be able to talk to your boss about getting one. Even though it can be scary to talk to your boss, it's often a good idea. Take the chance if you've recently taken on more responsibilities or gotten good feedback at a review. If you're new to the job or have been doing the same thing for a while, you might want to try a different approach.

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Start a side hustle

A side job is a terrific option to earn some additional cash if you don't think you'll get a raise. Consider how you can use your expertise to earn money. You might be able to find employment as a music tutor, for instance, if you enjoy playing.

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‍Read more: 24 Side Hustles To Make Top Dollar in 2023

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‍Anything you don't use, sell it!

Why not hold a garage sale or sell items on Craigslist or Facebook Marketplace? Selling your used gadgets, clothing, art, furniture, and other items is a terrific way to earn additional cash without putting in a lot of effort, and it can also be a great way to get rid of items you don't need.

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‍Read more: How to sell on eBay: a step-by-step guide for merchants

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5. Set goals for yourself

Even while paying off your debt is certainly rather high on the list of things you want to accomplish, it does not have to be the only financial goal you have for yourself. The very process of setting additional goals can really keep you motivated to concentrate on your financial situation.

Create a visual calendar for yourself  so that you may constantly be reminded of them. Seeing them can serve as a reminder of why you are working so hard, which can serve as a motivation for you to keep going when you see them. This is a huge hack for me!

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Also, do not be afraid to celebate your wins.

Paying off debt can be a slow and drawn-out process, even with a sound plan and additional payments made each month. As you go closer and closer to achieving your objective, it is vital to regularly assess and acknowledge your achievements along the route. Even seemingly insignificant accomplishments, such as paying off a balance or reaching $1,000 in your savings account, are worthy of being celebrated, and doing so can help drive you to work toward more significant achievements.

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6. Keep learning more about your finances

Educating yourself on what you don't already know about money is one of the most effective things you can do to better your financial status in the upcoming year. Passive money management can result in blunders with your money that ultimately end up costing you more.

Improving your financial knowledge can assist you in creating a successful environment for yourself. We must all make the commitment to take our financial life to the next level, and education is the key.

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7. You don't have to go through your debt journey alone

If you can't make your minimum payments, talk to a financial advisor at Vincere Wealth Management. Their expert team can help you develop a budget, come up with a plan to pay off your debt, or negotiate with your creditors.  They can also assist you come up with a plan to pay off your debts once and for all. You are not on this journey by yourself.

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Speak with an advisor at Vincere Wealth today.

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Here is a great video from one of Vincere's experts.

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Wrapping Up

Improving your financial habits is a process that requires time and repetition to become second nature. And when you're reaping the benefits of your efforts, you'll realize that the sacrifices you're making now were well worth it:Creating a budget, cutting back on costs, making a little bit of additional cash, and selecting a method of debt payback that is effective for you are all things that can be helpful. Being patient and maintaining regular payments will help you get out from under the burden of debt even if it might be very frustrating.

I hope this information was helpful!

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If you have any questions, feel free to reach out to me here. I’d be happy to chat with you.

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About the Author‍

As Managing Partner of Vincere Wealth, Josh assists clients in navigating financial challenges and making sound financial decisions. Having someone guide you in making sensible financial decisions today can have a substantial impact on your future financial wellbeing. Josh takes great pride in guiding customers through the complexities of taxes, real estate, businesses, employer stock and international financial planning.

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Learn more about Josh.