How to Control your Debt

by author

We all want an extra $1,000 dollars a month, but most of us don’t know how to get started.

If you are like 65% of Americans who rely on a single source of income, you might be in a tight spot. The reason being that your income growth is solely determined on that source. Most of these sources don’t have drastic variations that could increase your savings at the end of the month, but your expenses do tend to grow exponentially. 

Unless you have an uncanny ability to budget your life and not overspend, then you my friend are on a train to bankruptcy. You will most likely be racking up credit card debt due to your effort to cover daily bills with limited income. 

Rather than cutting minor expenses and going mad trying to control your expenses, focus on increasing your income. 

Sounds great right? Let’s take a look at how you can do so.

Here are 4 things you can do to increase your income:

1. Cut off bad debt

2. Start a hobby that you can charge for

3. Find a passive income idea that doesn’t require your time and energy

4. Remove extra spending 

These all sound pretty obvious, right? Let’s take a deeper look at how they each work. 

Cutting off bad debt means taking a hard look at those pending balances looming over you.

Debt like credit cards, tax debt, and student loans are great examples of those hard to kill debts that require your attention.  Payment plans are an easy option to be responsible towards them. If you can show that you are going through a financial hardship, most of these can be settled.

Take time to speak to professionals who can guide you in the right direction. 

If you enjoy photography, web design, or crafts, look for ways that you can exploit these hobbies. Charge friends and family to offer these services. Maybe offer your services on a freelance website. 

Passive income sounds attractive, doesn’t it? Study on jobs that can be carried out remotely and don’t require your attention or time. Maybe outsource and charge broker fees. Be creative. 

Does unnecessary purchases every month can be tricky. Was it the 200 dollar bar tab last weekend? Was it that new kitchen appliance that we barely use? Was it those sneakers that I don’t really use? At the end of every month, go to your bank statement and review your purchases. There are small purchases that we do on a daily basis, coffee, cigarettes, sweets. They add up and over the course of a month can be a shocking number. 

Take control of your life by being smart towards your debt. Don’t let them dictate your behavior and thinking. Speak to experts that can guide you.

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