Being Debt-Free in 2020

As the New Year gnaws on its second month, Resolutions are either going or staying. Most goals we set ourselves at the beginning of the year have to deal with our finances. Money dictates just about every aspect of your life and if you are in debt, you’ll feel like you under water. The pressure is sometimes immense. That’s why everyone wants to pay back their debts, get in good financial standing, and begin to save. While getting out of debt is much harder than getting into debt, here are a few ways you can stay in the positive and avoid financial woes in the future.

Consolidating Debt

Consolidating debt combines all the money you owe into one place. It can cut the time you owe because you will get an overall lower interest rate. This is popular with college graduates to do a student loan consolidation to reduce rates and have flexible payment terms. It will also help forge a payment plan for a certain period of time. Often banks or other companies will outsource their debt, and you can make requests to transfer your case to the debt collector. With these entities, you have to talk to them. You have to be as honest as possible. It will help you in the end.

Allocate Differently

Another thing that will help you get rid of debt is what you choose to pay for. For example, if you are paying a car off you can stop paying as much or at all to instead get rid of your debt. Any payments you are making must be more than the minimum amount to pay off the money you owe that has more interest. It’s all about interest, the more you have the more you will pay. This also goes along with the way you live. You will probably could change your lifestyle.

Change your Lifestyle

Most people in the West could change their lifestyle. So many people are living above their means, and often doing it inefficiently. If you are paying for a mortgage, a car, or anything other large expense, you might want to think about making some life changes to get rid your debt. Paying back the money you owe should come first, not a brand new car or a house that is too big for your family. Take pride in living within your means, not beyond them. You can also eat out less and pay attention to your food and drink expenses. We are all hungry for success but we should make an effort to down size our lives.


There are likely plenty of things that you can make smaller in your life or get rid of it altogether. You can cut down on your subscriptions. You can move to a cheaper place. You can buy a cheap used car instead of paying for a lease. When you have done all you can do as far as downsizing and changing your lifestyle, it will be time to get into the nitty-gritty of credit and interest.

Check your Credit Score with the Bureaus

It is important to always keep track of your credit score. Not only should you know your score, you should request lines of credit from each of the three credit bureaus. They are, after all, separate entities that hold their own score. This means that you could have different scores at each of them, and all could be incorrect. This is why you should request your credit history from each bureau. Only then will you be able to make sure they are accurate.

Size of Payments

It is imperative to make more than the minimum payments. Whoever lent to you has designed the minimum payment to maximize their profit in interest. It’s very simple. This is how lenders make money. According to MoneyPug, an expert platform on payday loans, you should pay as much back as you can to lessen your interest fees. It will help you get out of debt, which is what you need the most.

When you start to change your mindset concerning debt, you will begin to make changes and see things more clearly. Having any debt is very detrimental to you. You will be in charge of your own life more when you are financially independent and stable. This will help you save and invest in yourself and your future.