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6 Debt Reduction Tips

February 26, 2015

11442069295_8e5b8ac486_z[Photo credit: Lendingmemo]

My husband and I are currently in the process of paying off our credit cards (one of my new year resolutions). Getting out of debt is more than just paying things down, it’s changing your routine and breaking bad habits. I thought it would be helpful to share my experience and hopefully inspire some others.

  1. Create a Budget: My husband and I have been using the budgeting system YNAB (You Need a Budget) for a few years. It a little complex but once you get the hang of it, it’s totally worth it.
    • Challenges: YNAB encourages users to combine their checking and savings into one account and use the YNAB system to do checks and balances. The YNAB interface is your source of truth. This helps users stick to their budgets and not overspend.
    • Benefits: You can create various categories for your budget, plan for the future, and allocate your money down to the dollar in order to save.
  2. Develop a Strategy: Start with the card that has the lowest balance, and then proceed to the next. The idea is to create a snowball effect and use the amount that you used on the previous card for the next in line.
  3. Change Your Mindset and Lifestyle: This one is tough. My old self would come home from work and do a little online shopping, my favorite past time. I kid I kid, but not really. To break a bad habit try to stay busy – work out, cook a good meal, etc. Find new interests and hobbies.
  4. Unsubscribe from Retail Emails: This tip is not for the faint of heart, but for those who are serious about getting out of debt. I have not made this leap yet – how could I unsubscribe from my favorite retailers (J.Crew and Loft)!
  5. Create an Emergency Fund: During this time you will also want to save some cash. Pick a dollar amount and put that same amount away every month. Soon you’ll find that you have saved a lot of cash, and who doesn’t want that. This way if an emergency comes up, you don’t have to rely on your credit card and fall back into old habits.
  6. Give Yourself an Allowance: Nobody said you have to go cold turkey. It’s not easy to stop spending if this is the lifestyle that you have grown accustom to. Allow yourself some spending money to use however you like. Just make sure to stick to the amount you have budgeted. You don’t want to jeopardize all your hard work.

I hope you find these tips helpful. If you have some of your own advice, please share it in the comments.

39 Comments · Labels: Lifestyle Tagged: Credit Card Debt, Debt, Debt Free, Debt Reduction Tips, Get Out of Debt

Comments

  1. fashionandstylepolice says

    February 26, 2015 at 2:09 am

    Nice post.

    Reply
    • Asa says

      February 28, 2015 at 8:41 pm

      Thank you!

      Reply
  2. Heather says

    February 26, 2015 at 8:19 am

    Very cool Post! Great Tips!

    Heather
    http://www.thefab3.com

    Reply
    • Asa says

      February 28, 2015 at 8:43 pm

      Thanks Heather.

      Reply
  3. Tailored and true says

    February 26, 2015 at 9:08 am

    Great tips! This is such an important thing, and something not a lot of people talk about! I think this post is great!

    http://www.tailoredandtrue.wordpress.com

    Reply
    • Asa says

      February 28, 2015 at 8:45 pm

      Thanks Caitlin for your comment. I appreciate. Glad you enjoyed the post and that you found it helpful.

      Reply
  4. Liz says

    February 26, 2015 at 10:21 am

    I totally needed this! I have a horrible spending habit. I just can’t seem to save money! Whether its buying a new top I love or getting my mom a little gift, I just have to spend. I’m gonna give up shopping for Lent and then see where to go from there.

    Reply
    • Asa says

      March 1, 2015 at 9:12 pm

      So glad you enjoyed this post. Thanks for commenting. Best of luck on reducing your spending. It can be tough but totally worth it. 🙂

      Reply
  5. Amelia Vesper says

    February 26, 2015 at 12:29 pm

    I so need this. I’m a massive shopaholic! Unsubscribing from emails is a really good idea…and I should probs try #6 too. Thanks for the tips (and good luck from a fellow shopping addict)!

    Reply
    • Asa says

      March 1, 2015 at 9:15 pm

      I’m a shopaholic too! Glad you enjoyed the tips. Thanks for the encouragement. 😀

      Reply
  6. Tania says

    February 26, 2015 at 4:50 pm

    These are all excellent tips- Thanks Asa! It’s always good to be reminded… particularly the bit about retail emails 😉

    Reply
    • Asa says

      March 1, 2015 at 9:16 pm

      Thanks Tania. Glad you enjoyed.

      Reply
  7. Feline Creatures says

    February 27, 2015 at 8:46 am

    Very insightful tips! I agree it’s important to budget wisely and give yourself a wiggle room. Kind of like dieting where you need to be mindful of what you eat (in this case what you buy) but also have a treat every now and then. Thanks for the share Asa have a great weekend! 🙂 xo~ Lena
    http://www.felinecreatures.com

    Reply
    • Asa says

      March 1, 2015 at 9:23 pm

      Thanks Lena. You’re right in your comparison to dieting and budget. You have to be realistic and allow some wiggle room in order to stay on track.

      Reply
  8. Mojisola Obazuaye says

    February 27, 2015 at 3:29 pm

    This is really good tips Asa. I am of the school of thought that if you do not allocate money to things, things will aloocate money to themselves. Thanks for sharing them.
    Have a great weekend.
    Mojisola
    http://www.mojintouch.com

    Reply
    • Asa says

      March 1, 2015 at 9:27 pm

      Thanks Mojisola. Glad you enjoyed the post. I agree with you 100 % about allocating money, I couldn’t have said it better.

      Reply
  9. April Nunez says

    February 27, 2015 at 8:55 pm

    This post is so nice. Great tips! 🙂

    April of: https://beybiapril.wordpress.com
    Instagram: @beybiapril

    Reply
    • Asa says

      March 1, 2015 at 9:45 pm

      Thank you.

      Reply
  10. Danika Maia says

    February 28, 2015 at 2:07 am

    I moved from california to Copenhagen and one of the things I noticed is that debt is practically non existent here! They are really strict about loans, credit cards, and people just don’t really have them as a rule. I, on the other hand, came with my wallet full of them! Interesting cultural difference. Now I’ve cut down to 2 and I feel much better hehe 🙂

    http://www.danikamaia.com

    Reply
    • Asa says

      March 1, 2015 at 9:52 pm

      Thanks for stopping by Danika. Very interesting about Copenhagen. Thanks for sharing.

      Reply
  11. Melisa says

    February 28, 2015 at 2:30 am

    Such amazing and helpful tips Asa. Have a awesome weekend babe. Kiss,

    Mel
    http://www.livingoncloude9.com

    Reply
    • Asa says

      March 1, 2015 at 9:52 pm

      Thanks Mel.
      Hope your weekend was nice.

      Reply
  12. avenuecamilla says

    March 1, 2015 at 5:47 pm

    These are all really great tips! It is always so helpful hearing from others and learning what they know! 🙂

    xxx
    Camilla
    http://avenuecamilla.com

    Reply
    • Asa says

      March 2, 2015 at 6:48 pm

      Thanks Camilla. Glad you found it useful.

      Reply
  13. emandtash says

    March 1, 2015 at 6:49 pm

    A necessary cruelty to place money management tips on a fashion blog…
    – Tash

    Reply
  14. annie lee says

    March 1, 2015 at 9:22 pm

    great tips 😉 thanks for sharing!

    Reply
    • Asa says

      March 1, 2015 at 10:01 pm

      Welcome. Glad you enjoyed.

      Reply
  15. Pru Yeo says

    March 1, 2015 at 9:45 pm

    Great tips, especially on the point about changing bad spending habits! Thanks for sharing!

    Prudence
    http://www.prudencepetitestyle.wordpress.com

    Reply
    • Asa says

      March 2, 2015 at 6:48 pm

      Thanks Prudence.

      Reply
  16. patriciablaj says

    March 2, 2015 at 1:27 am

    Great tips! Thank you for sharing! <3

    Fashionably,
    Patricia
    http://www.wingsforliberty.com/

    Reply
    • Asa says

      March 3, 2015 at 3:10 pm

      Thank you.

      Reply
  17. WhatWouldVWear says

    March 2, 2015 at 7:46 am

    Great tips, thanks for sharing! My dad always used to say not to spend the money if you don’t have it :), and it’s so true!
    Happy Monday, love!
    xoxo, Vanessa
    http://www.whatwouldvwear.net

    Reply
  18. celyn says

    March 2, 2015 at 11:19 am

    these are some really great tips! I need to keep watching out my spending habits too! thanks for sharing!

    lifeisashoe

    Reply
    • Asa says

      March 3, 2015 at 3:15 pm

      Thanks so much! Glad you enjoyed.

      Reply
  19. theworldofcos says

    March 2, 2015 at 7:23 pm

    Great tips!

    Reply
  20. chasingpotatoes says

    March 2, 2015 at 8:17 pm

    Great tips. I’m learning a lot from you. Thanks for sharing. Love your blog.

    Love,
    Gly

    http://destinedtobegreat.14webs.com/
    Instagram : @chasing_potatoes

    Reply

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Lace & Pearls is a style diary where you can find weekly outfit, beauty, and lifestyle post.

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