Today, many of us are living paycheck to paycheck because of financial situations that happen beyond our control. Someone in our household loses a job, becomes ill, or experiences other hardships like death or divorce. Whatever your life situation, when the bills start to pile up…it’s easy to turn toward one or many of the credit card offers we get in the mail. Here are nine ways to pay off debt without credit cards.
1. Stop Spending
This may sound easy, but often times, we don’t realize how much we are spending until we really start to analyze our daily spending habits. Only keep the cash in your wallet that you can spend. To avoid spending and pay off debt without credit cards, try keeping a journal for a month or at least a week to see where your cash is going.
2. Make a Budget and Stick to It
After making a budget, some people will divide their cash up into their budgeted categories so they know exactly what cash is needed for bills and other expenses. Your bank can help you establish a budget if you are uncertain where to start. Whatever you do, stick to your budget as hard as it might seem, and make sure to use a section of your budget to pay off debt. You will notice a big difference once you get into the habit of following a budget.
3. Use Only Cash
As hard as this might seem, especially if you are used to using your credit card or debit card for your purchases, when you use only cash, you will see how you are spending your money. You don’t always have to do this, but while you are trying to change some habits and truly understand where your money is going, this will help you to stay on budget. One way to accomplish your budget using cash is to mark envelopes with categories like “eating out.” Place your budget in the envelope and once the envelope is empty, you’re done eating out for the month. No credit cards needed.
4. Eliminate Frivolous Expenses
Overtime, we start to add little things to our budget that don’t seem expensive or frivolous until we are a little strapped for cash. When we start to examine some of the ongoing expenses we have, it’s amazing (and sometimes alarming) how much we are spending on things we could live without…even if it is temporary. Look at your cable TV extras, Netflix, landline that you don’t use, cell phone coverage, lattes, dining out expenses, gym memberships and much more. See if you might cut back on any of these items to allow you to pay off debt without credit cards.
5. Buy Only What You Can Afford
As a society brought up on credit, and borrowing money for our wants and needs is typical – while the bills pile up – force yourself to stick with your budget and only buy what you can afford. If you don’t have the cash available, you most likely cannot afford it today.
6. Clean out Your Kitchen
Have some fun with this. Look at what’s in your kitchen. Usually our kitchens can always use a good cleaning. Challenge yourself to create interesting meals with the food you have in your refrigerator, freezer, and cupboards. Buy only fresh fruits and vegetables to go with these meals. And only shop with a list! In other words, buy only what you need. Don’t bring anything more into your kitchen.
7. Challenge Yourself to Find Other Sources of Revenue
Consigning is a popular and easy way to earn some money today. Sell the clothes and household items you haven’t worn or used in a year at consignment shops. You can also consider selling things on eBay. Making your first sale on eBay can be surprisingly easy. This is a great project to start cleaning out your home and simplifying your life…especially when times might be a little harder. Simplicity helps to calm the mind.
8. Consider a Part-Time Job
When something is temporary, we can do most anything. Examine your lifestyle and see where you might be able to give up several hours, a couple times a week, to work a part-time job.
9. Consolidate Bills with a Personal Loan
Consider a personal loan to consolidate bills and then commit to follow all the above – maybe not the Kitchen Challenge – but truly keep a budget and commit to following it until you feel like you are on your feet again.
When life gets difficult…and the bills start to pile up…consider some new spending habits that will help you budget your money and pay off debt without credit cards. Know you can walk into your bank and talk with a banker about setting up a budget, and the possibility of a personal loan to help during the hard times.
