Everyone begins their adult life intending to handle their finances wisely.
Maybe you started building a savings account when you were young or avoided getting a credit card until you were well past your college years.
Even if you make all the best financial choices possible, everyone still deals with debt at some point. It could relate to your college education, your home, your latest car or charging fees to credit cards because you don't have the funds to pay them upfront. Even things like emergency medical bills can lead to years of debt.
The good news is that there's always something you can do to be proactive about getting out of debt. Read about how to pay it off right now, even if you're feeling unsure. A new perspective and a few tips could be all you need to start climbing back to financial stability.
You may know who mails your bills every month and where you need to send your money. That isn't the same as knowing how much each debt amounts to. When you have free time, make a list of everything you owe.
Organize things by company name, debt amount, due dates or whichever way makes sense to you. Seeing the numbers listed in front of you will give you a specific idea of what you need to accomplish.
Next, it's time to examine your budget. What do you spend money on every month, and how much of it is necessary? If you don't already have one, make a quick budget based on your spending habits. Write down how much you spend on those order-in dinners and what it costs to fill up your gas tank every week.
Your budget will show you where you can cut down on your spending to direct more money toward paying off debts.
It's exhausting to feel like you're throwing money at debt that never seems to decrease. You may feel like you could never pay it off, which leads to lazy financial habits. Instead of repeating this cycle, use the debt snowball method to make short-term progress and find encouragement.
The snowball method means that in addition to paying your monthly bills, you put a little extra toward your smallest debt or whatever you're behind on. Once you pay that off, you put a bit more extra money toward the next smallest loan. This repeats until you're knocking out debt left and right, leaving yourself with more free cash to pay off more substantial loans.
There's an easier way to pay your car, mortgage and personal loans with fixed interest rates. Set up a loan amortization schedule to automatically pay borrowers every month for the entire duration of your loan term.
Once these scheduled payments begin, you'll get an exact timeline showing when you'll pay the debt off. You'll never need to worry about not paying enough because the schedule will guide you.
If your main concerns are student loans and credit card debt, refinancing is always an option. It means you'll take out a new loan with lower interest, then use that loan to pay off any debt with higher rates. Your monthly fees will be much smaller and easier to handle.
You could also consolidate debts through refinancing. Instead of making three credit card and two student loan payments every month, you could make a single one for each.
Everyone's financial situation looks a bit different, so you'll need to do your research to find out what your best choices are. Check out refinancing options and amortization schedules, and make a budget to guide your decisions. You'll conquer your debt in no time so you can spend your hard-earned money on what you love.
Kacey Bradley is the blogger behind The Drifter Collective, an eclectic lifestyle blog that expresses various forms of style through the influence of culture and the world around us. Along with writing for her blog, she has written for sites like U.S. News, SUCCESS, Guides for Brides, Hotel Online and more!