How to Get Out of Debt in 2020 with Pacific Collection Group

Friday, January 3, 2020

Many folks are starting the new year off with motivation to get their lives in order not just on a physical level but financially as well. The number one thing people have responded with when I asked what their 2020 goals are, was to get out of debt. So here are some tips to help you achieve that goal for 2020.

Know What You Owe

You can’t even begin getting your debt under control if you don’t know how much you owe. Whether you’re organized or not, you need to go through all of your accounts that you have outstanding balances on and make a list either on paper or the computer with the name of the loan/card, the balance, the APR, the due date, and the minimum payment. This will help you feel more in control of your situation already because you’re facing it head on.

Tweak Your Budget

After you figure out what’s owed on each debt, you need to add up the minimum payments. That’s the amount each month that you MUST pay at the minimum towards your debts. So now you need to look at your budget (if you don’t have one you can get a budget spreadsheet here) and ensure you can cover the minimum as part of your monthly expenses. You also need to tweak your budget so your expenses are reduced as much as possible, allowing you to throw any extra money leftover each month towards your debt.

Get Rolling on Payments

I like to start with the smallest debt and throw as much towards it as possible until it’s gone. Once it’s paid off I take the minimum on the next debt, the minimum from the debt I just paid off, and anything extra each month and use that as my payment. I do this until the next debt’s paid off then I keep repeating the process on the remaining debts.

Seek Help

If you’re in WAY over your head in an unreasonable amount of debt and no matter what lifestyle changes you make you still can’t get a handle on it, do your research on companies that can help you eliminate debt, such as Pacific Collection Group. Don’t be ashamed. Just call around with a list of questions and find out what your options are, how much it could cost you in the long run, and if there are any other alternatives to try before going this route. Some people are left with a mountain of immense debt from unfortunate circumstances in their lives and it’s just too much to handle so professional help is needed.

Celebrate Every Win

Any time you pay a card off, CELEBRATE! Share the good news with your friends and family, pat yourself on the back, and keep that motivation strong inside you so you can keep going on your debt pay down journey.

Avoid Credit Cards

In order to become debt free you have to avoid what got you in there in the first place, especially while you’re trying to pay off your loans. Do not charge anything else to them. Instead work extra hard to come up with money for an emergency savings so you have money for unexpected things that come up that you would normally charge on a card.

With some motivation and guidance, you CAN achieve your debt free goals for 2020!!

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