Today I’m here with Greg Brock and Matt Nader to talk to you about some tips to get out of debt. This isn’t specifically related to real estate, but is more about helping you build wealth and save money.
We work with a lot of people who aren’t in the position to purchase a home, and sometimes this is due to debt.
- Start with a budget. A budget is a great resource to know how much money is coming in and how much is going out. Money needs to be managed, and this is a tool to help you do that. When you budget, you need to track, and when you track, you can improve.
- Set attainable goals. You’ll chip away at your debt a little at a time, but over time, you’ll be able to knock down your debt. Set small goals to start.
- Be mindful of what you’re charging to credit cards, or don’t use credit cards at all. At the very least, don’t put anything on a credit card that you can’t pay for with cash. It’s okay to have credit cards, and they can sometimes be useful in building credit, but you have to be mindful of what you’re using the cards for and make sure you can pay down those balances on a monthly basis.
- Pay down anything with a high interest rate. If you can, talk with a financial advisor or even a lender to determine which interest rates you need to be paying down first.
- Have an accountability partner. It could be a friend or someone else that you’ve talked to about getting out of debt, or even us. If your goal is to buy a house or be financially stable, we can be a resource for you as well.
Getting out of debt will help your purchase power when you’re looking to buy a new home. When you have less debt, you can get a lower mortgage payment on a larger home.
One very important tip is to look at what you’re spending on a monthly or weekly basis by checking your debit bank statements. You’ll be able to see where you can reduce spending on things that might be unnecessary, like your daily cup of Starbucks coffee.
The theme here is to have a plan. People will take the time to plan for a year or more to take a trip, but don’t take the time to plan their financial futures. Some people are even afraid of financial planning. If you have any other questions, please don’t hesitate to reach out to us. We’d be happy to help!