5 Ways to Become Debt-Free | McCarthy Law
June 16, 2021

5 Ways to Become Debt-Free

The average American has $90,460 in debt, making debt an unavoidable part of life. While not all debt is bad, letting large amounts carry over each month can become a significant risk on your finances. Paying down debt can be a daunting task, and what works for others might not be best for you. However, with a bit of planning and budgeting, there are ways to become debt-free. If you need assistance, consider contacting the debt attorneys at McCarthy Law.

Shop Smart at Grocery Stores

An easy way to cut down on how much debt you are accumulating is to shop smart. You have probably heard it thousands of times, but use coupons. Be sure you are using coupons for items you already buy rather than adding items to your list because of a coupon. Otherwise, you might end up overspending on things you do not use.

Also, consider buying the store brand rather than the name brand. It will be the same product but at a more affordable price. Take advantage of sales. Some stores even allow you to combine them with coupons. Being a savvy shopper can save you thousands of dollars a year. You can then use that extra money to pay off some debt.

End Gym Memberships

Staying in shape is essential for our physical and mental health, but having a gym membership can be expensive. An annual membership can cost you close to $500. While that might not seem like a lot, any amount of money you can put toward debt will be beneficial. Instead of going to the gym, go for a run around your neighborhood. There are also thousands of workout videos on YouTube that do not require equipment.

Cut the Cable Cord

Some cable options cost more than $100 a month. If you have not cut the cord yet, do it. You can put your monthly cable cost toward paying down student loans or credit card debts. Instead, consider a streaming service, such as Netflix or Hulu. Both platforms offer thousands of hours in television and film content for a fraction of the cost.

Find a Second Job

If your day job only pays you enough to get by, consider finding a part-time job. Many retail stores are always looking for new employees to cover nights, early mornings, or weekends.

If you do not want to work in retail, consider becoming a driver for Uber or Lyft. Working for a ride-sharing company is a good option, especially if you live in a highly-populated area. Plus, you can work around your schedule. Delivering for Grubhub or Doordash is also a good way to earn some extra income. Ultimately, finding a second job might be what you need to become debt-free.

Make a Budget

Creating and sticking to a budget is a great way to track your spending. Many people use the 50-20-30 rule. 50% of your paycheck goes to essential expenses, such as rent, utilities, and groceries. 20% should go into a savings account, while the last 30% is for everything else. Consider splitting that 30% up into two categories of 15%. You can still have some money for nonessential items, but you are committing at least 15% of your monthly income to pay off debt.

If you find yourself not sticking to your budget, use the envelope method. Visualizing your money can help you be more aware of how you spend it. Grab a few envelopes and write what each one is for, such as “Groceries” and “Monthly Bills,” and store money inside. This tactic will help you not overspend.

Sell Items You No Longer Need

Chances are your house or apartment is filled with items you no longer need or use. This can be anything from clothes that do not fit or a surplus of pots and pans. Gather everything you want to sell and list it on Facebook Marketplace or Craigslist. You can also plan to have a yard sale. You should put whatever profits you earn toward your debts.

Speak to a Debt Settlement Attorney

No matter how hard you try, you might still be struggling with debt. When this happens, contact the debt settlement attorneys at McCarthy Law. Our team is passionate about helping our clients navigate their financial situations and receive a favorable settlement. We understand the burden debt can cause, and we are committed to helping clients end the devastating cycle of debt. To schedule a free consultation, call (855) 976-5777 or complete our online contact form

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