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Paying Off 6 Figure Debt and Still Living Your Life

Paying Off 6 Figure Debt and Still Living Your Life

This post may contain affiliate links. Check out my Disclosure Policy for more information.

The thing that I don’t like about some of the personal finance gurus out there is that they tell you to basically stop living your life to pay off your debt.

And I do get the reasoning, if you can get it done in a couple of months. If you can buckle down and be debt free in 2 months, absolutely do it!

But, what about if you have 6 figure debt and it’s going to take you years to get out debt? Do they seriously expect you to not live your life for years?

That would be crazy! And I can speak from experience (approaching the 4 year mark of my debt free journey and still have $66k to pay off) that you will burn out and be miserable if you do this.

I’m not saying spend all your money on fun things and have no money to go towards your debt. But, you should be doing things that are important to you on your longer journey.

Here’s how I have made it possible to still live my life while paying off $201k in student loans.

1. I am constantly trying to find ways to increase my income compared to my 6 figure debt.

As a teacher, my income isn’t exactly high. It’s just how it is in the US, teachers don’t make much money, even with a master’s degree. So, I found other streams of income to supplement my salary.

By increasing my income, it allowed me to still apply extra money to my debt, while doing the things I wanted to do.

When you have 6 figure debt, it helps a lot to increase your income. Whether you use the extra cash to pay off debt, or afford some of the things you want to keep in your budget.

2. I find ways to lower my expenses I don’t care about.

When I first started my debt free journey, I had to move home with my parents. The reality was that my minimum payments were $2,000 and my salary was roughly $3,000, 10 months of the year.

My salary was only this high because my parents live in New Jersey, where cost of living is high. In a lot of places in the US, my teacher salary wouldn’t have even covered my minimum payments.

This allowed me to slowly pay off my student loans. Eventually I could afford to move out, but I continued to live at home and put more money towards my student loans.

Find ways to lower the expenses that aren’t as important to you. For me, living at my parent’s house made sense because it allowed me to have a higher income and lower cost of living.

3. I have sinking funds.

Sinking funds are wonderful. They have helped me so much throughout my journey. I have sinking funds for expenses that I know will come up, like car maintenance or medical.

But, I also have used them to afford things I want to do in the future. For example, I created a moving out fund when I did decide it was time to move out of my parent’s house.

This allowed me to slowly save up money to afford a move. I was able to decorate and afford other moving expenses without it impacting my monthly budget when I did move.

Sinking funds also allowed me to go on trips and other experiences. I slowly saved for it in the months before and got to enjoy my time guilt free because the money was in my sinking fund.

4. I stick to a strict zero based budget.

Zero based budgets are a game changer when managing your finances. Basically what a zero based budget does is allow you to tell every single dollar where to go. If you need help creating your own zero based budget, you can get my template here that I use every month.

It gives you the control of where you spend your money. So, you can give yourself the money you need to do the things you love.

This is where lowering your expenses you don’t care about comes into play. You need to lower your expenses in those categories so that you can spend money in the places you want to.

Do these things at once to live your life and pay off 6 figure debt.

By doing these 4 things, I have been able to pay off $134k of debt in just under 4 years. I still have gone on vacations, experienced new things, and got a puppy.

You just need to decide where you want your money to go and make sure it goes there. Spend some time really figuring out what things make you happiest in your life.

Start saying no to the things that don’t bring you joy and start saying yes to more of the things that do. How have you still enjoyed life while paying off a lot of debt?

 

Debt

How a 6 Figure Debt Free Journey Is Different

How a 6 Figure Debt Free Journey Is Different

This post may contain affiliate links. Check out my Disclosure Policy for more information.

I say it a lot, 6 figure debt is no joke. And I’m not including a mortgage when I say this. I’m talking about 6 figures of non-mortgage debt.

This would be debt like credit cards, personal loans, car loans, student loans, etc. Basically I’m referring to anything that is debt, that isn’t a mortgage.

There are a lot of people in this boat. Don’t think that you’re alone.

I was there with $201k in student loans to become a teacher, which wasn’t the brightest idea. But, after just under 4 years, I have paid off $134k. I still have more to pay off, but the ridiculous burden is much less now.

Because I have experienced 6 figure debt, I know that it is much different than other debt free journeys.

From the start, you have to accept the fact that your journey will be different than most people because a lot of people don’t have 6 figure debt.

It also is going to be very different if this is your own debt, or if it is you and your partner’s debt. That makes a huge difference. For me, it was just myself that had all this debt and it was just me to pay it all off.

This is how a 6 figure debt free journey is different than others and what to consider if you are paying off 6 figures of debt.

1. The amount of time you will be on your debt free journey.

Let’s be realistic. We all would love to pay off our debt in 12 months. But, with 6 figures of debt, especially if you’re single, is going to take a longer time to pay off.

Don’t let this get you down. Never compare your journey to someone else’s, only use it for new ideas, motivation, or suggestions.

Paying off 6 figures of debt is going to take some serious time, but don’t let that get you down. Use it to motivate yourself to get creative and find ways to shorten your journey.

When I first started, my projected journey was going to be 8 years. I’ve paid off $134k in under 4 years. You can bet that this journey will not take me 8 years anymore.

I used undebt.it to figure out and track my debt free date. This is a great way to keep your motivation up throughout your journey.

2. The amount you send to debt each month will be much higher.

When you have 6 figures of debt, your minimums are naturally going to be high. That’s just how the math works. All over the #debtfreecommunity on Instagram is people sharing their monthly debt payoff. Myself included.

When I first started my journey, my minimums were roughly $2,000 every month. If I posted my monthly payment of $2,015 it looked like I sent a ton to debt, but I wasn’t making much progress.

My shovel was so small in the beginning because my minimums were so large. I was making these massive payments, but only a very small amount was higher than my minimum.

This meant that my journey didn’t get much shorter in the beginning.

Don’t get discouraged by this part in the beginning. Have faith in the process and keep working the plan.

3. You’re going to need to find more streams of income.

When you have 6 figures of debt, you’re going to need to increase your income to see progress. You can only cut so many expenses from your budget, but your income is infinite.

That’s how I made such large progress in my debt free journey. I moved to a high cost of living area, which gave me a higher teaching salary.

This also allowed me to make a lot more in my side jobs, I have 5 consistent streams of income. You can get a copy of my multiple income stream tracker here.

And I’m not saying you’re going to need to work your life away. But, find other sources of income and put it towards your debt.

This can be as easy as negotiating a raise at your current job, or working OT, if it’s offered.

4. To see a major payoff, you’re going to need to make major changes.

Like I said in number 3, with 6 figure debt you just need to do some things differently. In order to see major payoff, you’re going to need to make some major life style changes.

I mentioned moving to a higher cost of living area to have a higher salary. You probably thought, higher cost of living means higher everything else too, right?

You’re totally right, but not when you get creative about housing.

For me, I was making $3,000 a month with a minimum payment of $2,000. I moved to the area because it guaranteed me a salary that could at least support my minimum payments.

Most parts of the US, I wouldn’t have made enough as a teacher to even cover my minimums. So, I moved to a higher cost of living area and moved back into my parent’s house.

I told them my plan and explained to them that I would be putting every single extra penny I had to my debt. They allowed me to live rent free for almost 4 years and this is by far one of the biggest ways I was able to pay down my debt quickly.

This isn’t an option for everyone, but think of ways to hack your housing costs. Find a cheaper apartment, get a roommate, or use AirBNB to rent your space.

The key is to not compare your journey to someone else’s journey.

It can be really hard not to compare your journey to another’s. But, when you have 6 figures of debt, your journey will most likely look a lot different than most.

You’re not going to be super intense for 5 years. That would be absolutely insane. Maybe you can do months like that, but it’s not realistic to do multiple years.

Keep working on your plan and your goals. You’re going to get there, it’s just going to take a bit longer. Do you have 6 figures of debt, how has your journey been different than a typical debt free journey?

Debt

Here’s Why Your Student Loans Are Getting Bigger

 

Here's Why Your Student Loans Are Getting Bigger

This post may contain affiliate links. Check out my Disclosure Policy for more information.

Student loans are a rare kind of debt. Most people take them out because they figure they’re “good debt,” and they can get a higher income with it post grad.

This usually is true and for some careers, you absolutely need a degree. But, you should be very aware of how much debt you are taking on while in school.

Of course, this is dependent on the degree you are going after. If you’re studying to be a doctor, chances are you will have a high income post grad. If you’re like me, studying to be a teacher, chances are your income is going to be lower.

Don’t make the same mistake I did and take out $201k to become a teacher. It will be nearly impossible to survive post grad, trust me.

And you just might find yourself in a situation of having your student loans get larger post grad, even if you’re making your payments.

How do student loans increase, if I’m making my payments?

I know it sounds crazy, but it’s very true. It happens to so many people. They make their minimum payments, but they realize their total is increasing, not decreasing.

This is the sad reality of student loans. Student loans are the craziest debt, in my opinion, especially federal loans, when you don’t understand them. They can’t be wiped away with bankruptcy and they can increase, even when making minimum payments. Also, they have a ton of different options for repayment and forgiveness.

But, that’s exactly why they are a problem and why they increase. People see they have a minimum payment of $0 and think it’s awesome.

The reality is that your loans are still accruing interest every single day. Once a year the interest capitalizes and now it’s part of your principal balance. Now, that total will be accruing interest and suddenly your loan has ballooned in size.

This happens to so many people and the fact that it even is possible is so terrible, in my opinion.

How can I prevent them from getting bigger?

The very first thing you need to do is become aware of your student loans and where your payment goes every month.

If your loans are private, you’re most likely fine. Usually, private loans don’t have the crazy repayment plans and require you pay off the interest and some principal in your minimum payment each month. To be sure, check your statement and see where your payments are going.

If your loans are federal, you need to very carefully check your payments. If you are on any kind of payment plan, you need to make sure your interest is being paid off every single month. If you see that your interest isn’t being paid off each month, this is when you get your loans increasing.

I’m not saying don’t use a payment plan option on your federal loans, I’m personally on one to lower my payment while I focus on other student loans. But, I’m sure to pay off at least my interest every month no matter what.

And this is how I prevent my student loans from getting bigger.

If you have student loans and are making minimum payments, I absolutely think you should check out how your payment is being made. Make sure you’re paying off the interest every month.

If you’re not paying off the interest every month and you see that it is growing. Make a change right now. Increase your payments to at least cover the interest. Make sure this happens by putting it in your budget and treating it like the minimum payment.

You might think it doesn’t matter, but once the interest capitalizes into your principal and it’s accruing even more interest, it will matter. It will make it much more difficult to pay off in the future.

Basically, just pay your interest in full every month.

That’s how I go about my student loans. No matter what, I pay off my interest in full. And I know that these loans qualify for forgiveness in 10 years of on time payments. But, that’s a super long time to be paying a minimum payment on these things.

Personally, I would much prefer to pay them off faster and just get to do whatever I want with my hard earned money.

Also, I assume that these programs won’t last. I don’t want to count on something that may not work out for me. Plus, I took out the loans and I absolutely should have to pay them back, so that’s what I’m doing. Do you have student loans? Have they increased in size while you pay the minimums?

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Debt Free Update: $133,718 Student Loans Paid Off!

Debt Free Update_ $133,718 student loans Paid Off!This post may contain affiliate links. Check out my Disclosure Policy for more information.

I’m super proud of this number. Honestly, it still surprises me when I see it and think about only having $67k in student loans now. And yes, I use the word only before that because this feels like pennies in comparison to where I was.

It truly amazes me how much more in control I am of my life now that I have paid off a significant amount of my debt.

My student loans defined me when I first graduated. They dictated my life. They decided my fate, not me. I had no choice but to do the things I did after college.

When your minimum payments are $2,000/month and you’re a first year teacher, you have no choice but to do what gets that paid every month and still allows you to eat.

It’s why I moved back to my parent’s house. I needed the low cost of living expenses in a high cost of living area. My salary was way higher than it would have been in other parts of the country as a teacher. I took advantage of it.

Between the higher salary and working so many side hustles, it’s the only way I got to where I am now. Well, that and really intentional spending and money management, of course.

What I’m doing now to pay off my student loans

Right now, I’m focusing on paying off my private student loans. I refinanced them in September 2018 from a 7% interest rate down to 4.97%. This has saved me so much money in interest and I highly recommend refinancing with Earnest, if it’s right for you! Read my post all about deciding to refinance here.

Refinancing isn’t for everyone, but when used to lower your interest rate, it can really help you pay off your debt fast. I personally refinanced $45k and am now down to just under $15k. If you’re interested in refinancing, you can use my referral link to get $200 when you refinance!

With having so much debt, you really need to do what works for you on this journey. It’s hard, but you can do it and you can change your life for the better. I’ve experienced major life changes for the better and I still have $67k left!

What I plan to do

I often imagine how much more my life will improve once I have no debt. The opportunities that I will open up to myself are endless at that point.

It can be done and it will be done. Even during the summer, when I don’t get my salary from my old school.

I’m teaching summer school and VIPKID during the summer to bring in some income. I also have my summer sinking fund to pull from and my leftover money from June.

Yes, my debt payments will decrease this summer. I don’t plan to make any extra debt payments in July. Whatever I have left at the end of August will be sent to debt.

I am a planner by nature, I can’t help it. I’d rather be over prepared than under. So, that’s why I’m not risking it and waiting until I am paid from my new school to send any extra money to my student loans.

This is definitely hard for me. I stay motivated by seeing my debt total go down. It will still decrease because my minimum payment on my private loans is $865 and it doesn’t accrue anywhere close to that amount every month.

But, I won’t be making any crazy progress this summer. Again, it’s okay because I know I will get back on track in the fall. I just need to weather this storm.

Handling six figure non mortgage debt on a single income is a different kind of journey. If that’s you, send me an email! I want to connect with more people who have been or want to be on a similar journey to mine.

How much debt did you start with?

Debt

Paying Off My Student Loans Is Saving Me $12k A Year

How I'm Saving $12k a Year by Paying off My Student Loans

This post may contain affiliate links. Check out my Disclosure Policy for more information.

Everyone considers student loans to be a good debt. And for some people, it absolutely is a great way to get the career you love. But, for others, it may not be the best move.

I know for myself, I didn’t even know what student loans were when I was signing the checks for 5 figures of student loans. Naively, I didn’t even know how they worked and I definitely didn’t know what interest was.

Personally, I was in the fortunate position of never having any other debt than student loans. Unfortunately, this meant that I truly had no idea how debt worked.

I signed myself up for $201k in student loan debt and had absolutely no idea that it meant I’d pay SO much more in interest. And I had no idea that it would completely dictate my life post grad. But, that’s a whole other topic.

Student loans are crazy because they allow young adults to take out mortgage sized debt with high interest rates and little to no education. I was taking out loans for 5 figures, totaling $201k, some with 8% interest, and no education on financial literacy.

This was my fault completely, I take ownership of it. But, I think this is a serious issue. One that needs to be changed ASAP for the future young people in our country.

And now that we’re in this situation, what can we do for all of us drowning in debt. I’m not saying loan forgiveness is the answer, like it has been thrown around lately in the news. It absolutely is not the answer.

We took out the debt, we should absolutely be required to pay it back. But, we can do something to change our situations right now.

I graduated grad school in August 2015 with $201k in student loans, mostly from undergrad. Never once did I expect some program to bail me out. I’ve absolutely worked my butt off to pay off $133k in student loans since graduation.

Once I finish paying these off, I will be saving myself $12k every year, just in interest. I would have originally been paying $12k every year for 20 years, if I didn’t commit myself to paying off my debt.

Do you know how much that is over 20 years? $240k. Of course, some of them would drop off at the end and maybe I’d have refinanced my loans to get a better rate. But, that’s a TON of extra money just getting thrown away, on top of the principle of $201k.

I’m not even including my principle payments in this number. That number would be much bigger. I’m most concerned about the money I’m just throwing away to interest every year. It’s doing nothing for me.

So, how much money are you throwing away to interest every year? I encourage you to find out by looking at your statements and seeing how much goes to interest every payment you make. Or, you can use your tax statement you get every year.

Another way to see your students loans and how much money you’ll put to them is by using undebt.it. It will allow you to see how much money you’ll put to your debt on a normal payment plan, and then what more payments will do to it.

Our society preaches that student loans are good debt. Yes, they can be valuable to better your career, if done correctly, but you need to be careful about student loans.

My question to you is, are you planning to pay off your student loans early? If not, what’s stopping you?

I’ve been in your exact shoes and I’m happy to say that my life is so much better already and I haven’t even finished paying off my student loans.

I still have $67k to pay back, but I can finally breathe now and not feel like I’m totally drowning in debt. You can feel relief, you just need to do the work like I did.

I want to know what’s stopping you from paying off your student loans, send me an email or comment below.

Debt

How to Navigate 6 Figure Debt

How to Navigate 6 Figure Debt

This post may contain affiliate links. Check out my Disclosure Policy for more information.

6 figure debt is no joke. And I’m not talking about a mortgage, I’m talking about all the other fun kinds of debt that are out there.

I’m 27 years old and had $201k of student loan debt to my name once I graduated as a teacher. Yeah. You read that right and yes, I was stupid to take out that much debt to become a teacher. I’m well aware now. But, that doesn’t get rid of my debt.

I’m at the point now where my debt doesn’t feel so overwhelming. It definitely makes my budget trickier, still having a minimum payment of $1,100, but it’s a lot better then $2,000. And now that I’ve paid off $127k, the process is moving much faster.

I’m now in the 5 figure debt club. This was absolutely something I celebrated. 5 figure debt is so much better than 6 figure debt. And it was right around my half way mark too.

I’m at the point now though that it’s frustrating to think about the things I could have done with this money. I could have bought a house in cash with the amount of money I have put towards my debt. 6 figure debt is not fun, especially on a single income.

Over the last 4 years I have found some ways to help get myself through this. It’s been a long journey, but one that I know will be worth it once it’s done.

1. Don’t deprive yourself to pay off your 6 figure debt.

Yes, you need to cut your expenses to pay off your debt. But, learn from my mistakes. Slowly make these changes. Don’t try to drastically change your life in the beginning. All this will do is set you up to fail and feel down on yourself.

When you have 6 figure debt you know you’re going to be on a long journey. There is no avoiding it. This means you need to be realistic with what you cut from your budget.

But, how can I actually do this?

My biggest tip is to look to see what expenses you can live without. How I managed this was by looking at my transactions the previous month. I was so angry by how much I spent eating out, that I cut this from my budget first. This would be hard to cut out completely, but I limited it. I made sure I was aware of my spending in this category throughout that first month. Also, I made sure I only went out to eat to be social and not for convenience.

I suggest you do the same when you’re first starting out. Cut whatever makes you the most angry. Every time you go to make a purchase in this category, check in with yourself. Is this necessary, how has my spending been in this category so far?

Once you have done this, I suggest seeing if there are ways to do the things you enjoy for cheaper. For example, I won’t give up getting my hair cut and I won’t do it myself. However, I do spread out my hair cuts much more and make sure I get a cut that doesn’t need to be maintained.

Being in 6 figure debt is hard, which is why you shouldn’t deprive yourself throughout the journey. You should be more intentional about where you spend your money though.

I also love a good no spend month with 6 figure debt. You can go one month with not spending anything on extras, it’s short and super effective. I don’t recommend this for long term, since you’re going to be in debt for a longer period of time.

2. Get creative about big monthly expenses.

Unfortunately, there are just some things in the budget that you can’t cut out. Like, your housing. But, you can get creative with this category. Depending on your situation, you may need to make some major changes. I think housing is one of the best ways to save money. It’s typically a huge monthly expense. If you can get it as low as possible, you’re going to help yourself a lot.

For me, I literally didn’t have any money for housing with my minimum payments when I graduated. No teacher salary gave me a high enough salary to afford both. That’s when I realized I had to move back home with my parents.

This did 2 things for me, lowered my housing costs and put me in a high cost of living area. Which also got me a higher teaching salary. Is it ideal to live with your parents at 27, no. But, it has allowed me to pay off a ton of debt in a short period of time.

If I didn’t move home with my parents, I would have been putting every single expense on a credit card. There was no money left over in my budget, if I had rent. My current situation would have been so much worse then it was when I graduated.

Figure out ways to cut your housing expenses. Can you rent a smaller apartment? What about getting a roommate? Could you move in with a friend and split rent? The more money you can save in housing, the more that can go to your debt payoff.

3. Create a plan to pay off your 6 figure debt, but don’t be afraid to change it.

Like I have said a few times throughout this post, this is a long journey. When you’re first starting out, you’re going to make this perfect debt payoff plan. You’re going to be so excited to get things moving. But, life happens.

You need to make changes for life, or you’ll never get out of debt. It doesn’t make sense to be tied to a financial plan. These plans can’t take into consideration the things that life will throw at you. You’re better off delaying your plan, then going into more debt.

This also means that you can change the order that you pay off debts in. Nothing is telling you how to pay off your debt. Of course, there are plans out there and I’m sure you created your plan based on one of them. But, that doesn’t mean you need to follow it exactly.

Right now, I’m paying off my private loans. It doesn’t follow the snowball or the avalanche method. But, it makes sense for me and my current situation. In general, federal student loans are a bit more forgiving than private student loans. For that reason alone, I am paying them off first. My private loans also come with a minimum payment of $865 and I can’t wait to take that out of my budget.

Figure out what works best for you and make changes to keep yourself going. With 6 figure debt, paying off debt is paying off debt. Get it gone in whatever keeps you going on this journey.

4. Increase your income.

When you have 6 figure debt, you absolutely need to increase your income. It’s simple math. There is no way to get out from where you are without more money coming in. Figure out what you can do while keeping your sanity.

My rule is that I’ll always try it to see how I like it. If it’s too much with my teaching schedule, I eventually stop it. Of course, I can always do something short term. It makes it so much easier when there is an end date in mind.

With that being said, make sure that you enjoy what you’re doing. If you’re miserable, going to another job is going to slowly drain you. It’s just not worth it. You need to find something that you enjoy that also brings you in some extra money.

However, I also remind myself a lot that I can do anything for a short period of time. So, maybe you get a side job that you know you will be done with in a month. You can feel stretched for one month and you know you will be done soon.

It all comes down to what you are willing to do.

That’s really it. What are you willing to do to get out of debt. Some of us are willing to go crazy intense to have it be gone. Others want to live a little while they tackle their debt. It’s all about what you want to do. For me, I was very intense for about 3 years. I needed to take my foot off the gas though. I was burning out and getting very frustrated by how much my debt was holding me back from.

The reality was that my debt was no longer holding me back. I had paid off enough that it was no longer a huge burden anymore. I had put those restrictions on myself trying to see how quickly I could get this gone. The issue with that though was that I wasn’t living my life. Now I have a better balance and I’m still making extra debt payments every month.

So, I want to know, do you have 6 figure debt? Are you actively trying to get rid of it? If you aren’t, what’s holding you back? Sometimes all it takes is someone else to look over your situation and I’m happy to be that person for you. What have you done to pay off 6 figure debt?

Debt

How to Get Quick Debt Relief

How to Get Quick Debt Relief

This post may contain affiliate links. Check out my Disclosure Policy for more information.

It took time to get into debt, so of course it’s going to take time to get out of debt. But, there are things you can do to experience quick wins to get you some debt relief. When you are feeling completely overwhelmed by your debt, sometimes you just need to free up a little cash flow to feel better.

I know when I hit my financial breaking point, I was totally overwhelmed. When my student loans went into repayment, I’d have a monthly payment of $2,000. And that was just the minimum, on a teacher’s salary.

To say I needed some debt relief was an understatement. I remember being in grad school and having no idea how I was going to afford everything.

That’s when I started getting into personal finance. I started looking at my situation differently. I stopped thinking about how much debt I had. The only thing I thought of was how to get my cost of living down and paying down my debt.

You need to stop thinking about what you can’t do in your situation. What can you do right now to help get you some debt relief.

And I’m not saying you should do any shady things. I’m saying look at your situation and start getting creative to get some quick debt relief.

1. Call every monthly bill you have and try to get a lower payment.

I’m not saying your monthly debt bills, I’m talking about other bills that you can negotiate. Most of the time, if you say you are going to switch providers, your internet and cable will lower. Worst case that happens is they say no. Then, you start shopping for other providers.

If you do this with a few of your monthly payments, the money saved will add up. This won’t help with your debt relief, but it will help with your cash flow. The money you save will go to adding more to your smallest debt to pay it off.

By spending some time shopping around for different options, you’ll be surprised how much you can save. A lot of the time we get loyal with the company that we originally did service with. The problem with this is that there are constantly new companies starting for all services.

This is fine, but when you’re struggling with your debt, it isn’t helping you. Shop around and see if you can get a better price. Lowering multiple monthly bills will free up money to go to debt.

2. Cancel any subscription you don’t use for some debt relief.

Cut out any subscription or monthly bill that you don’t use. After a while, we get complacent spending money on subscriptions we don’t even need. Get rid of them. It’s not helping your situation.

If there is a subscription you like, see if you can get something similar for a lower price. Or, cancel it for now until you pay off some of your debt.

Whatever money you save by not having these subscriptions, throw it at your smallest debt amount.

3. Sell big ticket items around your house.

Just like how we get with our subscriptions and monthly bills, we tend to hoard things in our houses. Anything that you can part with that will earn you some money, sell it! You’d be surprised by how much stuff you have in your house that can be sold.

I suggest looking at furniture items that you don’t use or can see your house without. Personally, I like using Facebook Marketplace to sell my furniture that I don’t need anymore. It’s easy and immediate cash for your items.

Whatever money you get from selling things, put it towards your smallest debt. Are you seeing a pattern here?

4. Lower your housing costs.

This was the true game changer for me. If I didn’t move back home to my parent’s house, I would never have been able to pay any debt off. This brought my housing cost down to zero. When I felt like I was drowning with my payments, this saved me.

You don’t need to move back home, but think about how much money is going towards housing. How can you lower that expense. Can you get a roommate? Move to a lower cost of living area? Downsize?

There are so many ways to lower your housing expenses. It just depends on what you’re willing to do. I see so many people spending SO much money on housing. And are drowning in debt.

To me, thats a no brainer. It’s such an easy way to free up some cash flow. Downsize to a smaller living arrangement and put all the freed up cash towards your smallest debt.

5. If you have a large car payment, sell the car for debt relief.

I know, you’re probably thinking that you need a car! I get that, I need my car too. There is no public transportation for me to use. I’m not saying get rid of your car, unless you truly don’t need it.

I actually babysat for a family that moved so that they could be walking distance to work. This allowed them to drop to a single car family. It was awesome and serious goals.

Back to where I was going with this. Sell your car and get a car with a lower car payment. If you have savings, use the savings to buy the car outright. Not all of your savings obviously, but take what you’re comfortable with. Make sure to keep at least 1 month of expenses in there.

If you’re someone that bought a new car with nothing down, chances are your payment is very high and on very long terms. Get rid of it! If you’re drowning in debt and feel helpless, there is no reason to have that car. And I’m not saying get a car that isn’t safe. I’m saying get a used, reliable car, with a low car payment, if needed.

By doing this, you will lower your monthly expenses. The freed up cash will go towards your lowest debt amount.

It’s all about what you’re willing to do.

The only way you are going to experience some debt relief is to make changes. You got into debt living this kind of life, you can’t continue it and get out of debt. What it all comes down to is what you’re willing to do to get some relief.

A lot of people aren’t willing to do the hard work and change their life. These changes that I mentioned can help you within a month. Others will take longer, but will see bigger changes. For example, moving might take longer to do, but you will experience a huge change with doing so.

This is a lot to do on your own, but you can do it. If you need more accountability, check out my 1:1 coaching that I offer. It’s for you if you know that your debt is overwhelming you and need to make a change. What have you done to experience quick debt relief?