Five Easy Ways to Get Rid of Debt

Five Easy Ways to Get Rid of Debt

As we all know, having debt even the smallest amounts is not something we want to have hanging over our heads. Especially if we have families to take care of. Having any sort of debt does not allow us to prepare for the future or even the now. We are only paying for the past. Now who wants to live like that? According to Dave Ramsey, the “Debt Snowball” is his go to for getting out of debt quick. This method was not invented yesterday. It has been around for a while. Here’s a list of how to get started.

  • List debts smallest to largest
  • Gather all your paperwork of what you owe down to the last penny. Do not include your first home mortgage right now. Just take a look of the total numbers and make a list.

Here’s an example:

  • Crew: $165.08
  • Lowes: $543.72
  • Citgo: $498.12
  • Capital One: $2,461.67
  • Wells Fargo: $18, 508.35
  • Navient: $57, 243. 19
  • Create a document of the other details
  • Using Excel or even a pen and paper, list the interest rate for each debt, the minimum that is owed, and date of the next payment due. Make sure to keep this list separate. You don’t want it getting mixed up with the other records.


  • Crew: $16 @ 14.56 %
  • Lowes: $30 @ 9.98 %
  • Citgo: $12 @ 7.29%
  • Capital One: $115 @ 25.02 %
  • Wells Fargo: $205 @ 6.8%
  • Navient: $376 @ 5.1 %
  • Create a Monthly Budget
  • If you have not done so yet, make a realistic budget for this month. It may take a little bit of time, but this is extremely important. Include all the debts minimums owed. Then total your monthly income and expenses. If your income is larger than your expenses, you are on the right track.


  • Income: $3,508
  • Expenses: $3,962.75

Like most families, this total looks very similar to many. The expenses are higher than the income. Now, it may seem very obvious, but in order to fix this problem there are two options: decrease the monthly expense, or increase the income. What most families will do is, cut back on eating out. This helps more than you know. Or, maybe sell some items on Craiglist or Ebay.

  • After a little while, the scale will be tipped and the total will now look like this:
  • Income: $3,674
  • $3,523. 89

It may be really hard to see initially, but it is so significant to cut back on the expenses and find a way to increase the income.

  • Create a Debt Snowball Plan
  • First thing you need to do is, take any extra money that you have and use it towards your debt. It’s very simple.

Do not add anymore to your savings. Allow yourself to have a little bit of spending money but not much. About $20 per person a month; not $450.

Continue paying the minimum on all but the first debt.  And with the extra money that was saved from eating in or elsewhere, use it to pay the minimum of the first debt towards J.Crew. Keep this up and you’ll be able to pay the debt off in no time.

  • Find extra Snowflakes When you can

– At anytime, it’s always a good idea to make money when you can. Have a tag sale, clip some coupons, find any way to reduce your expenses and increase your income. Don’t brush anything off. Even pennies will really make a difference. So take control of your debt and your life! You will be free from these debt companies before you know it.

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