Getting in (and out) of debt

1. Know What You Owe

First things first, figure out exactly how much you owe and to whom. Grab a piece of paper or open a note on your phone and list all your debts. Include the amount, who you owe it to, and any interest rates.

2. Create a Budget

Take a look at your monthly income and expenses. Write down how much money you earn each month and what you spend it on. Then, see where you can cut back, maybe skip those daily coffee runs and cook at home more often. Use the extra money to pay off your debt.

3. Pick a Repayment Strategy

There are two popular methods to tackle debt:

• Snowball Method: Pay off the smallest debt first, then move to the next smallest. This can give you a sense of accomplishment and keep you motivated.
• Avalanche Method: Pay off the debt with the highest interest rate first to save money in the long run.

Whichever method you choose, make sure to keep paying the minimum on all other debts.

4. Get Professional Help

Feeling overwhelmed? It’s okay to ask for help. Talk to a credit counselor—they can help you create a budget and a plan to pay off your debt.

5. Avoid More Debt

While you're paying off debt, try not to add more. Set aside money for emergencies so you don’t have to rely on credit cards. Create a savings account for things you want to buy and use cash whenever possible. It's harder to part with physical money, which can help you spend less.

Final Tips

• Be consistent with your payments.
• Celebrate small victories when you pay off a debt.
• Stay focused on your goal and remember, getting out of debt takes time