While living a debt-free life sounds pleasurable, is it possible? There are some ways that you can aggressively pay off your debt. Although you’ll have to change your spending habits and make sacrifices in the beginning, it’ll be worth it in the end. Here are some easy habits to develop for paying off your debt without worrying about making ends meet, according to Truman Advisors. 

Stop Contributing to New Debt

The first thing you need to do before breaking free from debt is to stop the development of new debt. It’s important to stop adding to that debt as soon as possible. Sometimes one of the easiest ways to stop spending money is to use cash only. Set aside a certain amount of money for groceries and gas each week. 

If your credit score is still good, then apply for a balance transfer to a lower interest rate credit card, but if your credit score needs some work, then you’ll want to find a debt consolidation program or negotiate a plan with your credit card issuers. In this case, you can always negotiate a lower rate, which brings you to…

Negotiate Lower Rates 

This is one way to make settling your debt less painful. If it’s possible, consider reducing your interest rates and fees. Your credit card and student loan debt could end up with a lower interest rate simply because you asked. Sixty-nine percent of consumers who asked for a lower rate received one. In addition, 87% of consumers who asked for a late-fee waiver received one as well. 

For a mortgage, it can require refinancing, but it can be an option that’s worth looking into if you can’t keep up with the payments. Truman Advisors explain this method is worth it only if the interest rate you’ll end up with is lower than the one you have.

Budget Debt Payments 

The biggest mistake that most people make when paying off their debt is not budgeting their debt repayment. Since it’s often higher than your utility bill, it shouldn’t be treated like one. You’ll face serious consequences if you don’t repay your debt on time. If you can pay extra money towards that debt, then make sure that money is available in your budget.

The best approach for debt payments is the zero-sum budgeting approach. This allows you to utilize every dollar that you earn. If you make $2,000 per month, you need to find out where most of that money is going. Observe your budget and find out if you have any extra money left over at the end of the month. You may even need to tweak your budget and find an easier method that allows you to pay yourself first rather than spending any excess. Budgeting your debt payments doesn’t mean you have to have that money every month. You might want to look into auto-payments so you don’t have to worry about missing a payment, as long as that money is guaranteed to be available in your bank account. 

Envision a Debt-Free Life 

The next thing you want to do is to envision yourself living a debt-free life. What does it look like? What are you doing? How do you feel? How would you live? What goals would you like to achieve?

Not taking this exercise seriously will keep you in debt. Envisioning a better life for yourself will motivate you to get through what is at times a difficult and challenging process.

Use the Snowball Method 

One problem that many people have is deciding which debt to pay off first. Use the snowball method, where you focus on paying the smallest debts first, so you feel a sense of pride and can feel as if you’re off to a good start with your debt. 

For example, if you have a student loan and debt on five credit cards, you may want to pay off either the highest interest rate or the lowest balance. Once that debt is eliminated, focus on the next and leverage the newly freed up income until all 6 debts are paid in full. 

Get Help from Others

If you’re lacking motivation or need a new outlook on debt, seek inspiration from others who went through the same process. Sometimes being in debt and getting out of it can feel isolating. Reading other people’s stories can help motivate you to improve your life. There is plenty of support out there that can help you with your debt repayment journey. 

Consider credit counseling if you can’t come up with a debt payoff plan. These organizations offer free or low-cost services to help people get out of debt. A credit counselor can identify your unique debt situation and offer suggestions and techniques that you may not have otherwise considered. 

You can also ask your creditor for help. Most of them are willing to work with their clients, especially if they’re faced with an emergency situation or financial hardship. If you’re unemployed or faced with medical bills, they may waive your interest rate for a short period of time. Ask the creditors for help before your situation gets out of control. Tell them that you’d like to pay off your debt faster and want to know which services are available to you. 

Get a Full-Budget Checkup

You’ve decided to pay only with cash. You’ve found a way to lower the cost of your existing debt. You also came up with a budget and long-term plan to motivate you along the way. Now it’s time for an in-depth look at your budget. 

Track every cent that goes in and out of your account so you have a better idea of how much you can pay towards your debt. Keep the 50-20-30 rule in mind when spending. 

Use 50% of your budget for paying towards your car, mortgage, and rent payments. Save 20% in your savings and the remaining 30% for expenses such as dining, hobbies, and recreational activities. This 30% is the biggest and most important area for cutting back expenses. 

These easy habits and mindsets will have you living a debt-free life sooner than you imagined. You don’t have to worry about spending every dollar on debt. You just need a realistic plan that works with you and guides you through your journey.