There are plenty of ways to learn how to frugally pay down debt. Most people that are naturally frugal will already have many of the principles in place. That said, being in debt can certainly dampen a frugal lifestyle. Needing to divert precious funds to constantly make credit card and other debt payments can hamper your ability to save money. If you’re trying to pay down debt, here are a few tips to help you scrape up extra money and pay down that debt frugally.
Start With the Smallest Debt First
It isn’t easy to pay down debt, but with a plan to attack and conquer, it can be done in time. To get started, figure out which debt has the smallest balance. Focus on paying that one down first. Once you eliminate that debt, then move on to the debt with the next smallest balance and continue to work upward.
Every Little Bit Helps
You may be concerned that you don’t have a lot of extra money to go toward paying down debt. Rest assured that every little bit makes a difference. Even five dollars extra paid on a monthly bill will start to whittle away at the balance. {Try using the 52 Week Challenge to save money to pay down the debt.}
Use Coupon Savings for Debt Repayment
Do you use coupons? How about using the money saved through coupons to pay down your debt? Clip Coupons and use them as often as possible. Combine them with sales for the best values. After a shopping trip, take a look at your receipt. There should be a listing of the coupon savings for that order. Put that amount back and use it to pay toward your debt. It may be a small amount — just a few dollars here and there — but it will help and you won’t even miss it. {Check out the Favado App – it is perfect for finding the best deals on all your grocery and personal care items!}
Sell Scrap to Pay Down Debt
Collect aluminum cans and other scrap metal to help with your debt repayment plan. Check around your area for a recycling center that buys scrap metal. Save aluminum cans, steel food cans, and other scrap metal. When you have a load, take it to the recycling center and sell it. You may only get a few dollars, but once again, every little bit counts. Use the money from the scrap metal to make a payment on the debt you are working on.
Hold a Yard Sale to Pay Down Debt
If it’s yard sale season in your area, plan to hold a yard sale or garage sale and use the money to whittle away that debt. You probably have plenty of things that can be sold in a yard sale for even just a few bucks. Be willing to negotiate prices to sell items. Advertise your sale and choose a date with good weather forecast in order to attract a large crowd. Once you are finished with the sale, use the money earned to pay on your debt.
Paying down debt won’t happen overnight. It will take time and effort to cut that balance down, but it will be worth it when you are finally out from under it.
More great tips in my friend – Cherie Lowe’s book, Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After.
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