Frugal Toolkit

If you have followed these hacks in order, you should now have extra income to allocate paying down debt. Here’s how to start:
Create a clear picture of your finances
Your first step is to assess your financial situation. List all of your debts, including the balance, interest rate, and minimum payment. This simple exercise can reveal opportunities you didn’t know existed.
Choose a debt payoff strategy
Two popular strategies exist:
The Debt Avalanche: Pay off debts with the highest interest rates first. This approach is most effective for saving money over the long term, as it reduces the amount of interest you pay.
The Debt Snowball: Focus on paying off your smallest balances first. The quick wins from eliminating smaller debts can boost your motivation and keep you on track.
Put extra money toward your debt
Even small cuts to your budget can free up extra cash. Consider trimming non-essential subscriptions or bringing lunch to work. Use any extra money—including tax refunds or work bonuses—to accelerate your debt payments.
Automate your payments
Set up automatic transfers to ensure consistent, on-time payments, which helps avoid late fees and improves your credit score. As you eliminate debt, you’ll free up cash flow that can be redirected into your savings, building your financial future.