5 Ways to Get Out of Debt Faster

foreign of the Rachel Cruz show so today we'll talk about something that a lot of you made New Year's goals around and that is paying off debt yes so many of you are like I'm so tired of paying these payments every single month I just want to keep that money instead and you are ready to get rid of it you want it gone and out of here which is amazing and I love this because for a lot of people this is their goal when the new year comes around they're like I'm ready to get my finances in order and for some people it is paying off debt and becoming debt free so you've come to the right place if that is your goal because I want to share five ways to pay off your debt fast this year all right are you ready number one it's your mindset okay this is huge because getting into debt is easy we always say around here you can wander your way into debt but you cannot wonder your way out and so the idea of when you go into debt it's like okay I'll just sign that sheet of paper or here it doesn't take a lot of effort and so what happens is you get sucked into that black hole of debt and payments and you think debt is a way that I have to live and then it gets to a point for some people where they think I don't think I can get out like I don't know how to stop the cycle I don't believe I can because of your income the debt the debt level that you have like whatever it is you start to believe like I can't do it so number one the mindset is you can and once you have that belief then I want you to go all in all in and what we say around here is gazelle intensity because in Proverbs it says if you have signed Surety my son meaning you've gotten yourself into debt do this deliver yourself like a gazelle from the hands of the Hunter and a bird from the hands of a Fowler so a gazelle from the hands of a hunter well the Hunter of gazelle is the cheetah and so there's like this great pic picture right there in the Bible that talks about when a cheetah goes after a gazelle what is that gazelle doing and that intensity that running for their life like you are watching this thing happen like think about the Discovery Channel when you see that gazelle the intensity that that gazelle is bringing to get out of the hands of the hunter to get away from the cheetah that is the intensity you have to have to get out of debt if you have gotten yourself into debt do this deliver yourself like a gazelle from the hand of the Hunter and that's what's powerful about it when you have this imagery you're like yeah I can't just be like oh yeah it'd be fun to kind of get out of debt maybe I will put a little here and there there you're not gonna feel progress doing that but when you actually say okay I'm gonna do this every single day I'm gonna sacrifice and I'm going all in that's when you start to see progress and you can you know do things like make a gold tracker for every day listen to debt free screams talk to someone in your life that maybe can encourage you through it all look at your budget every single day like when you're doing this like you're tracking transactions from every single day where did I spend money today how much is left here I mean you are so intense so that intensity is what's going to help you get out of debt fast not just over the course of forever and ever and ever but out of debt fast that gets all intensity so that mindset is really key so once you have that mindset the second thing you want to do is to use the debt snowball so this is the most efficient way and the fastest way to get out of debt so people get out of debt they kind of look at two options they look at paying off the highest interest rate first and well honestly that's math and mathematically that is correct but money is not all about math and getting out of debt isn't always about math you really do have to say I have to change what I've been doing and you have to feel those quick wins so that's why the debt snowball is the best way so where you do the debt snowball is different you're not looking at the interest rate you're looking at your smallest debt versus your largest debt so I want you to list out every debt that you have not including your mortgage and you're going to list it out smallest to largest and you're going to pay minimal payments on everything stay current and then you're going to attack that smallest debt with that gazelle intensity so that small set even if it's a you know 600 Nordstrom credit card like whatever it is and it's like okay I I'm gonna pay it off with everything every amount of money I can find every amount of energy I can do to make money whatever it is that's going to leave as soon as possible and you put all your effort towards that and then once it's paid off then you have the minimum payment that you would have been paying on that credit card well all of that that money can be rolled over to the second smallest debt and again the intensity is still going and you keep going going and ends up happening is you create the Snowball Effect mathematically so you're you free up more money to go towards the next smallest debt and not only that but it gives you the win you're able to say you're knocking stuff out if you have a list you know you're you're checking off those debts and you're Crossing them out like you're winning you're making progress so when you have progress that allows you to go that much faster so we have found the people that do the debt snowball in the first 90 days they pay off fifty three hundred dollars in debt so in the first 90 days on average five thousand three hundred dollars is that not amazing and again it's just that focused intensity and having a plan of the debt snowball so once you're kind of doing all of that you're gonna feel that traction so before we go in to another way to pay off debt quickly I want to tell you about one of our sponsors are you a busy parent focused on family and Faith well what about finances times are tough but there's a budget friendly biblical solution to Rising health care costs and it's through Christian Healthcare Ministries they're caring cost-effective and Christian so to learn more go to chministries.org Rachel all right the third thing you want to do to get on debt quickly is to budgets this is really going to be your plan you guys this is going to be the tool that is going to help you probably the most when it comes to getting out of debt in a tactical sense so you know if you have a goal to get out of debt you can't do that with just this idea and numbers in your head you have to have a plan you have to have a budget so your budget really is your plan knowing where your money's going and this is going to help you so on your budget you really want to start with your four walls and that's food shelter utilities and transportation those are that's your primary and then everything else underneath is your wants and you can kind of list those out also it's going to help you with your thousand dollar emergency funds because your thousand dollars you want before you start paying off debt so that thousand dollars can be able to look again at your budget to be able to say okay where can I cut some stuff you know where can I free up some money to get that thousand dollars and then in turn where can I cut to be able to throw money at my debt so freeing up money having cash available throughout your debt is huge so the budget yeah you're able to say okay I'm going to cut some things out the things that I don't necessarily need I'm going to cut so whether that's Entertainment whether that's buying you know maybe extra clothes maybe that's subscription Services whatever it is you can say what can I live without for a short season so I can pay off my debt faster and that's what's key to be able to say you know I'm able to control this money that's on the sheet of paper and for a period of time again this is not forever you guys but for a period of time we're not going to go out to eat we're going to cut the cable we're going to do whatever we can we're going to trim that budget as much as possible and throw money at this debt all right the fourth thing that you can do to help pay off debt fast is sell stuff because we all have crap around their house that we don't use that we don't need sell it sell it sell it sell it you can get cash you know quickly and use that cash to throw out your debt I mean it's an amazing what small things big things around your house what this can do I mean like oh it it's amazing too because you start to see I can live without this stuff you know there's some stuff you have that you bought you're like I don't need this and even if it's just gonna bring 70 bucks like whatever it is it's like just yes sell it free it up throw that money at your debt and then what's great is once you're debt free you can say oh man I really do you know I don't know want that TV back in that room that we sold guess what you can go buy the TV like you can go buy stuff you guys again if you really want it but I'm telling you once you start selling stuff decluttering your house it's gonna free you up mentally and give you peace because you don't have as much stuff around the house it's amazing and you're making money while doing it it's a win-win all right the last thing that you can do to pay off your debt quickly is to bring in more income so get a side hustle and this is a great way to make more money and I know you're taking you know your time away from your day when you're doing this so it is really hard but again it's for a period of time I don't want you doing this forever but to be able to say okay for the next six months you know between now and June or whatever it is I'm gonna do this amount of work to make this much money so whether it's driving for a lift or delivering pizzas or babysitting or cleaning houses or dog sitting like whatever it is you're going to do that amount of work figure out okay I'll probably make this much if I can which is going to cause me to get out of debt that much faster so whatever it is you can just have that formula and be able to see it actually happen and so I know time is like Precious to all of us so it is hard to give up but I'm telling you if you can do it for that short amount of period it's going to help you get out of debt that much faster and there's a lot of people out there that are doing this you guys so find some people around you to encourage you while you're paying off your debt right if you're talking to people constantly if your friends are constantly like oh my gosh that has to be around forever and they're always talking about about you know living with credit card debt and they're doing stuff that they can't afford and it's constant constant find people in your life that are like no I'm actually gonna live below my means I'm gonna be smart with my money I don't want this stuff to own me like find those people in your life and let them encourage you okay and so also I would say that anyone can do this anyone can do this we have seen people at every imaginable level who are doing it and life doesn't always just happen like this okay you're it's gonna go up and down but don't get discouraged on those downslopes because just know you can continue to get up and keep working keep pushing until you are debt free and if you need some extra extra encouragement I really would recommend going through Financial Peace University if you have not done it yet it is so worth it and it's great because there are nine courses that's going to be able to give you the encouragement and the knowledge on how to do this stuff and everything in regards to your monies whether it's Insurance investing paying off debt you get the information it's like the information ever everyone needs and actually implement it and put this stuff to practice because you're going to be able to see progress so I'll put a link in the description for Financial Peace University so make sure to check it out all right you guys that's it you can do this if this was your goal this year I believe in you so commit to the plan remain patient remain diligent and it is one step one day at a time make sure to share this video with a friend who really you know may want to get rid of their debt and become debt-free too this will be some great encouragement for them and remember to take control of your money and create a life you love foreign

Channel: Rachel Cruze

Views: 61,622

Keywords: the rachel cruze show, the rachel cruze show youtube, money, budget, how to save money, budgeting, personal finance, rachel cruze, save money, how to budget, debt, saving money, save, how to make money, ramsey, finance, how to get out of debt, debt free, 5 Ways to Get Out of Debt Faster

Id: 77922HIaDF8

Length: 11min 30sec (690 seconds)

Published: Wed Jan 04 2023