Debt management 101: Five easy ways to get rid of debt

Debt management is an issue faced by many regardless of age. Student loan debt is one kind of debt that’s keeping adults from living their best life in terms of finances. All types of debt have the potential to cripple one’s bank account. Get rid of debt with these tips.

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Create a budget which lets you know how much you need for utility and phone bills, grocery, and other expenses that are necessary. Make your own spreadsheet that states your monthly income and expenses to help you know which area you can cut back to make room for paying off debt.

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Prioritize paying off the largest debt. From highest to lowest, sort your credit card interest rates, then take on the card with the highest rate first. Paying off the balance with the highest interest first helps you increase your credit card payment with the highest annual percentage rate while proceeding to make the minimum payment on your other credit cards.

Make a dent in your debt by paying more than the minimum balance and paying bills on time. You can strengthen your commitment to paying off debt by making weekly payments instead of monthly. The best way to get rid of debt is by avoiding getting into one. Halt your credit card spending and begin living within your means. Managing your debt takes a lot of effort, and you might need to learn and unlearn a few things when it comes to spending and saving.

Michelle L. Marquez is a finance major at USC and an aspiring financial advisor. Learn more about financial management by subscribing to Michelle’s blog.

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