8 Ways To Get Debt Free This Year

Well guys, here’s to the American Dream. Which usually means: get into debt as much as you possibly can! Oh yeah, this is not the dream; it is just how it’s really happening. So what was that American Dream again? Just check out this post with 8 ways to get debt free this year

Whatever it is or was supposed to be, a lot of people today are dreaming of a debt-free life. So be prepared to dream on as I share with you 7 ways to become debt free this year. See also this March update video on how to stay debt-free:


To make some decent income you need a good education. Do whatever you need to do to get at least a High school Diploma or equivalent it: a GED Diploma.

Getting the GED Diploma is a cost and time-effective option. The price of the exam is $120 in most states and you don’t need to attend a GED school before the exam. If you feel you can pass it, you can just sign up for the GED test, go to the exam place and get your diploma within a week. The GED diploma is the same as a High School diploma so you are good to go.

Stop Spending You Don’t Have 

There’s no dispute behind this logic. Still, most of us are spending money we even if we don’t have it, or are guilty of occasional overspending and experiencing some buyer’s remorse, aren’t we?

Credit cards and loans are making it darn easy to buy a new television, that new car or boat, or even four-wheel lawnmower that we actually don’t need at all. So lesson # 1 is: don’t spend money that you don’t have! Use your credit cards only in emergencies or just use your monthly budget to pay them off every month.

Create And Use A Budget

Budgeting will be your best friend! Budgeting will allow you to become debt-free before you know, but you really need to stick to it. Here are some steps to follow when creating your personal budget and make sure to avoid common and easily made mistakes (just take it from this older, experienced guy):

  • Put all your financial records and data together
  • Come up with a complete list of your income sources
  • Look at your entire monthly income and save something for your 401K to set up your own real estate imperium!
  • List all your monthly expenses and don’t forget anything
  • Then divide your monthly expenses into variable and fixed
  • Total now your monthly expenses and monthly income. Use your excess income for things like investments, savings, or retirement, etc
  • Be sure to allocate all your monthly income. Your expense column will have to equal your income column
  • Make sure you’ll review your budget on a monthly basis. Pay attention to your variable expenses and don’t be afraid to make any adjustments if necessary.

Create Your Personal Emergency Fund

Setting up your emergency fund is crucial. When an emergency occurs, your income may be depleted and you may feel hopeless. Be sure to include your personal emergency fund in your budget and contribute to your fund every month. Don’t touch your emergency fund unless there’s really an emergency. You may even open a separate bank account for emergencies or you may consider setting up an early retirement plan. Who knows, when you’re successful later on, you may want to think about earlier retiring, don’t you?

Set Up Your Online Checking Account

Online checking accounts are easy to monitor. Check your account every other day or at least once a week. If you have an online checking account, you’ll be able to keep up-to-date on a daily basis with what is being deposited and spent. If you’re on top of your financial situation, it’s easier to keep on track toward your goals.

Create An Attack Plan For Your Existing Debt

When you create a plan to attack existing debt you not only will get rid of your debt but before you know, you’ll also start to see some light at the end of the tunnel (commonly referred to as “hope”). If you want to get debt-free in 2019, just follow these steps:

  • Set up a list of all accounts you owe money on, including credit cards and loans
  • Be sure that your healthcare insurance is in order to avoid further risks
  • Place those accounts at the top of your list that you owe the least on, so go from least to most, but also bear in mind what interest rates are being charged
  • Now start paying, for each account, the minimally required payment, only not for the account that’s at the top of your list
  • Now look at all the money you can spend and use that to pay the account that’s at the top of your list
  • By the time the top one account is entirely paid off, move on to the next account on your list and repeat this process until all your accounts are entirely paid

Try To Increase The Gap Between Expenses And Income

This is commonly referred to as “living below your means”. You can accomplish this in two ways. The first one is simply to increase your earnings or income. The second way is to simply decrease your spending. Try to come up with a plan to save on all of your variable expenses and see if you can produce some extra cash. Read also: “Protect your 401k in case you die early” and learn more about avoiding risks.

Don’t Buy New, Buy Used

There’s no need to always purchase things brand new. There a ton of great deals out there on used stuff. When buying the following things, consider buying used:

  • Clothing
  • Cars
  • Furnishings
  • Transportation
  • Video game consoles
  • Washer/Dryer

This is the time to act fearlessly. This year, you may very well deal with all of your debt but be sure to accept the challenge and stick to your plan! But at the same time, keep in mind that you can also enjoy retirement later on in life, even when you’re broke. A highly informative article!

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