Chip Away at Debt

Debt is a burden. It’s overwhelming. It sits on our shoulders. But it doesn’t have to be this way. We often think of debt as something that requires a lot of work to manage. We think it requires getting a second job, going to debt management counseling or even winning the lottery! However, there are actually a lot of little things that you can do to chip away at your debt and making it more manageable.


Here are ten easy ideas for chipping away at your debt:

1. Put 10% of every paycheck towards paying off your debt. This should be in addition to the minimum payments that you are making each month. It sounds like a hard thing to do but once you get in the habit of it you’ll find that it’s a really simple way to start bringing your debt down to a more manageable place.

2. Increase your minimum payment by $10 each month. If you only make minimum payments each month then just start pretending that the number on the statement is $10 higher than it says it is. Pay the new amount.

3. Use discount codes when you shop online. Take whatever amount you’ve saved and immediately put it towards paying off your debt. The little bits will add up without straining your budget. Same deal goes for using in-store coupons.

4. Stop paying one monthly fee. Find a payment that you make every month that you can give up. Examples include your second car, a membership to a local yoga studio or your cable TV. Put all of that money towards paying off your debt.

5. Skip one entire section of the grocery store on each trip. This week skip the milk aisle and figure out how to do without dairy for a week. Next week skip the meat aisle and make vegetarian meals. Put the savings towards your debt.

6. Have a yard sale. Springtime is a great time to de-clutter your home and sell off all of the things that you no longer need. Take all of the cash that you’ve earned and make a payment on the balance of your debt.

7. Skip your annual vacation. You can go for one year without visiting your hometown or going to Disneyland. That money can make a nice dent in your credit card balance.

8. Check if you have any rewards. Many people have rewards on their credit cards that they haven’t cashed in. Get the cash back immediately and use it to pay down the amount you owe on the card.

9. Look at your bill statement once a week. The point of this exercise is to keep you focused on your debt repayment goals. Just reminding yourself of why you’re trying to pay off your debt really will help!

10. Set one more small goal. Learning to set debt repayment goals and meet them will assist you in paying off your debt bit by bit while making it feel more manageable at the same time.

This is a guest post by Kathryn Vercillo, a personal finance writer who writes about debt management, smart credit card use and saving money.