Financial Advice

Financial Friday: Cut Expenses, Add Hustles, Getting Out of Debt

I have been on a “kicking debt’s ass” journey for the past couple of years. I am so determined to be out of debt at 30 and so far, I am on the right road. In the past couple of years I have paid off a credit card ($2500), a personal loan ($3500), the IRS ($500), medical expenses ($200) and as of this month my teacher certification program ($400). Altogether that is $7,100 in two years. That may not seem like a lot to those who have paid off more, but for someone with similar debts as myself, that is a lot, especially considering my main sources of income.

If I still lived at home, I would be halfway through  my loans and my car would be paid off, but life happens and circumstances arise. How did I pay off these debts, you may ask? Here are somethings I did and somethings that others I know have done:

  1. Cut my cable and got an Amazon Fire Stick. It is the best decision ever. I was late to the game, but better late than never right? I know many people who have taken this route and noticed how much money they were spending on cable.
  2. Meal prep and cook at home more. This is a huge thing to cut money and to cut weight, being that we are the fattest country in the world. Meal prep saves you from cooking during the week and from putting on those extra pound.
  3. Upwork is a freelance site that I use to ghostwrite, edit novels, papers, essays and so much more. There are all kinds of freelance jobs on there from virtual assistant to graphic designer. Find your niche and get to work.
  4. GrubHub, DoorDash, UberEats and Postmates are other ways many millennials are making money. They’re like Uber and Lyft, but for food. Someone orders food, you pick it up and deliver it.
  5. Kick your Starbucks habit. I would be afraid to see how much some of you spend on Starbucks in a year and I am sure y’all are too.
  6. Apply for odd jobs like dog walking, babysitting, personal assistant, in home cleaning jobs, etc.
  7. Buy clothes from thrift stores and secondhand shops. $300 purses and shoes are not necessary and will not add value to your life.

There are so many ways to save and make money to get out of debt, you just have to be willing to make sacrifices.

Other Financial Posts:

Financial Friday: Minimalism Saves Money

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Financial Friday: My Plan To Get Out Of Debt

Financial Friday

Financial Advice

Financial Friday: My Plan To Get Out Of Debt

DISCLAIMER: I AM NOT A FINANCIAL ADVISOR OR COACH.

Editor’s note: I noticed that I had forgot to include that I owed the IRS money in my last post. I owed them almost $500 and as of yesterday, have paid them off. That freed up $25 every month that is now going to one of my credit card payments.

In my search for ways to get out of debt quick, I found there is no quick way to pay off debts when you work as a substitute teacher, part-time tutor, and freelancer. It’s just not going to happen. Nevertheless, I have created a plan and I have been sticking to it.

  1. In my last post I talked about a personal loan I took out with the bank due to my job at the time not paying me. Because I was so behind on payments, it went to collections. I knew nothing about collections or what it was. It just so happened that I watched a scope about how you can “pay to delete” a debt that has gone to collections. What this means is, you can pay a certain amount, less than what is owed, to have the debt removed. I was elated when I heard this. My loan started at $2500 but was $1500 when it went to collections because I had been paying what I could on it. Anyway, instead of paying the debt collector the entire amount, I ended up only having to pay $876. That’s a little over half of what I owed. This happens because the debt collectors buy the debt for like 10% or so of what the debt actually is. Granted 10% is $150 but of course they won’t let you pay that. They have to make a profit. But $876 is better than $1500. Now, I only have $200 left to pay on it (which will be paid at the end of this month) and that debt will be done.
  2. My two credit cards are maxed out and since I am behind on those payments, the accounts have been closed. I have been paying on one consistently to lower it and pay it off faster. $200 here, $100 there, as much as I can afford to pay without risking going hungry or without a car because I can’t pay for gas.
  3. As for my car, I have been making regular payments only because I am paying so much on my credit card. Once that credit card is done, then the next, my car will be the last thing that I owe my bank. Boy,  I can’t wait for that day.
  4. My student loans are in forbearance for now and they will be until I can get a teaching job to pay them. I am praying that one of these schools calls me soon and I can start paying on them in the fall. I know that after working for five years as a teacher, the loans are forgiven, but um, that is not soon enough.

This is my plan to get out of debt. Come back next Friday to see how to manage your debt.

Love and Finances,

Simply Moniqua