How to Get Out of Debt

Are you a homeowner who wants to get out of debt? Struggling to climb out of debt while paying exorbitant interest on your loans can be overwhelming. Trust me, I know! Another hurdle for many is the fear of changing their lifestyles and doing without shopping therapy and all of the little perks and comforts they’ve grown accustomed to in their daily lives.

While a few lucky individuals can succeed without a plan, most successful people set a path forward after seeking guidance from reliable sources to reach a new goal. So read on as we explore five ways that homeowners in Louisville can set their path to getting out of debt.

Plan

Our first suggestion for homeowners in Louisville who want to get out of debt is to attack the mountain of paperwork, track their spending habits, determine their monthly cash outflow and income, and then set a realistic budget. To succeed at eliminating debt, you need to strictly follow your budget, working towards savings, adjusting as life or economic circumstances change. It is helpful to set both short and long-term goals and build in rewards for achieving these major milestones in your life. Taking strides to control your future should be celebrated; as the old saying goes, people don’t plan to fail; they fail to plan. If you don’t take control of your life now, eventually, someone else will.

Cut Back

Another way for homeowners in Louisville to get out of debt is eliminating the little extras, like magazine subscriptions, streaming services, and phone plans. There are many different methods of creating a budget for yourself. One of the most popular methods is the 50/30/20 method. With this method, you take your monthly income after taxes and split up the money into 3 groups. Necessities, Wants, and Savings/Paying Off Debt. 50% of your monthly income should go towards necessities, 30% towards wants, and 20% towards debt. While these can be modified to fit your lifestyle, it’s important to follow this budget and cut costs as often as possible. For example, instead of going out for coffee in the morning, bring your coffee from home and lunch to work with you more often than not. And if you can’t stop eating out at restaurants altogether, pencil the expense into your budget and make it a rare occasion– like once a month. While it can feel as if you are punishing yourself, keep in mind how thankful your future self will be that you skipped the things that aren’t so very necessary after all. Once all of your debt has been settled, that’s when you can treat yourself for a second time that month. Look forward to it!

Use Shopping Lists

One more way for homeowners in Louisville to get out of debt is to endure the discomfort of sticking to their shopping list and ignoring distractors that can derail your budget. Instead, make a monthly menu, it’s best, of course, to eat before your grocery run and keep a running list, so you aren’t making extra trips that offer temptations to stray. Go shopping on an empty stomach and you’ll find that temptation to go a little over your budget to become almost impossible to resist. Don’t fall for it!

Freeze Your Credit Cards

If your goal is to get out of debt as a homeowner, you could put an official freeze on your credit cards (no freezer required) and live on cash only. Unfortunately, debt is expensive, and it is all too easy to pull out a credit card for an instant solution. The lower your credit score, the more expensive it becomes, much like a snowball effect, between the monthly bills and the events of life that can throw expensive curveballs into the budget, like home repairs or unforeseen emergencies. This is something that you would need to heavily weigh in the balance as you could quickly and fairly easily dig yourself even deeper into debt. And nobody wants that!

A Direct Sale to Shane Adams Real Estate

Our final suggestion for homeowners in Louisville to get out of debt is to sell their house directly to Shane Adams Real Estate and get the money they need without the hefty commissions or closing costs, and hidden fees. You can sell your house directly to Shane Adams Real Estate without worrying about conventional loan approval for your buyers, passing inspections, and paying for costly repairs. Instead, Shane Adams Real Estate buys houses as-is for cash, so the closing is guaranteed and fast. Shane Adams Real Estate wants what is best for you, so our direct buyers will outline how much you could earn through a traditional sale, so you can compare it to our detailed offer, which you’ll agree is fair. Call Shane Adams Real Estate at 812-704-0005 or send us a message to learn more.