Getting out of debt goes beyond simply paying off what is owed; it implies adopting the right mentality and strategy to pay off financial commitments without facing extreme difficulties.

With the following tips you can improve your economy:

Make a list of your fixed expenses

Before delving into the process of paying off debts, it is essential to have a clear understanding of your monthly expenses. By listing all your fixed expenses, from rent and utilities to subscriptions and loan payments, you will get a clear picture of how much money you need each month to cover your basic obligations.

Tighten your budget and reduce unnecessary expenses

Reducing unnecessary expenses is a key part of getting out of debt. Once you've identified your regular expenses in the previous step, identify which ones are necessary, such as food, housing and utilities, and which ones are unnecessary, such as entertainment or clothing.

Reducing your unnecessary expenses can give you extra money to put toward your debts.

Apply the Snowball Method to pay off your debts

The snowball method has gained popularity because of its motivational and tangible approach. This method, instead of tackling your debts in the traditional way, focuses on sorting your debts from the smallest to the largest, without considering interest rates. The idea is to generate motivation and confidence by quickly paying off smaller debts, which gives you a sense of progress.

Avoid taking on new debt

As you work to pay off your current debts, it's crucial not to add to your financial burden. Limit your spending, consider using credit cards cautiously, and avoid unnecessary borrowing.

Stay firm and adaptable

There is no formula on how to get out of debt. There will be obstacles and challenges along the way. The most important thing is to keep a positive attitude, be flexible in your strategies and constantly remind yourself of your goals and reasons for getting out of debt.

Translated by: A.M