Make 2023 The Year You Start Living Debt-Free

Going into a new year always seems like a good time to get a fresh start on doing something better, whether that’s exercising more, being more adventurous, or becoming more financially healthy. But making sure your goals are realistic is the key to seeing your good intentions through.

Living a life that’s debt-free may sound like you’re reaching for too much, but it doesn’t have to be a failed New Year’s resolution.

How do I start being debt free?

The first thing to do is make a budget. Look at all your household expenses and your monthly income and decide how much of your leftover income can go to paying your debt more aggressively. It’s a good idea to also see if there’s any streaming services or entertainment-related expenses that can be eliminated.

What is the trick to paying off credit cards?

The first thing to do is make a budget. Look at all your household expenses and your monthly income and decide how much of your leftover income can go to paying your debt more aggressively. It’s a good idea to also see if there are any streaming services or entertainment-related expenses that can be eliminated.

Does the 80/20 budget work?

While we’ve already established that budgeting is important, it’s also a good idea to work some savings into your budget. The golden rule is 80% of your monthly take-home goes toward your bills and household expenses and 20% goes toward savings. It’s recommended by experts and easy to follow.

What is the meaning of debt management?

If your debt has become too much to handle, a credit counselor can help you set up a budget and provide information about financial literacy workshops, as well as enroll you in a debt management program. This means they will negotiate with your lenders to reduce your interest rate and consolidate your loans into one affordable monthly payment to be paid off in three to five years.