Debt: Your Worst Nightmare

The picture to the right is definitely not the right idea! But, many early 20somethings are in debt. Either from having to find ways to pay for school, or from getting their first credit card and deciding to look fabulous. But hopefully by now many of your have realized your mistakes, and have decided to man up and decided to do something about your debt. Here are some tips and tricks that will help you on your quest to becoming a debt free 20something! 

• Don't go into debt in the first place! If you are about to get your credit card... def take this advice! And if you are already in debt, do this as well. I have mentioned this several times. Take the money that you are allocating for various expenses (food, clothes, gas...) and divide it by four. Only spend this amount in the week. But to make sure you do, go one step further. Withdraw the amount of cash you have allocated for the week, and only spend this. Leave you credit cards at home, and enjoy being one step closer to better credit! 
• Knowledge! Know what you are up against! The best way to do this is to compile all of your information together. A great website that I have discovered is www.mint.com. It allows you to compile all of your different accounts, and categorizes them (with some help from you) so that you can tell exactly how much you spend on fast food, on clothing, on your utilities... It also compares this to the average in various major cities, against each state, and against the entire US! (I am below average for just about everything... except food :-(. But it gives you something to work towards. You are also able to set up a budget, and tell exactly how much you are over. It's an amazing website that will help you manage your expenses and put your debt right in front of you to deal with! 
• Eat in! Don't eat at convenient fast food restaurants all the time. Eat in, or bring a healthy, inexpensive snack. Those fast food places are very expensive, and very unhealthy. You will be doing your wallet and your waistline a favor if you stop eating out so much! Also, learn how to make equivalents to foods that you eat out. Learn how to make teriyaki chicken that you buy at the mall. Learn how to make Zaxby's chicken! Spend less money in the grocery store and don't waste the gas! 
• Budget! Create you budget and stick to it! Be realistic. Don't set $50 for clothes and $200 on food, if you know you are obsessed with new clothes and eat in 99% of the time. Think about what you usually spend, and decrease it proportionally. Use www.mint.com so that you can tell how close you are to budget without managing it yourself. But make sure you factor in hundreds of dollars towards your debt! 
• Pay it! Pay your debt off in hundreds of dollars, more than the minimum. The minimum generally just pays the interest. Ask you bank how much interest you are accumulating a month, so that you know how much beyond the minimum you need to pay to make a dent. 
• Ask! Ask you bank to lower you interest rates. It would definitely help you pay off your debt, and the worst that could happen is for them to say no! 
• Get help! If you realize you can't manage this on your own, get help! There are people out there who cost, but who are there to professionally help you. Try to find a personal banker, or financial specialist. They may cost, especially the good ones, but the will be worth it in the end! 
• Auto-pay!!!! If you can't remember to pay any of your bills (including credit card) set up auto-pay! The set amount you choose, or the cost of your bills, automatically comes out of your account on a certain day each month. This way your bills won't be late! Because late bills contribute to bad credit! 

Paying off your debt fast is very important. You will have more money sooner, rather than some money for a long time. It also improves your credit which will help you get a nicer house, car and apartment, for less in some cases! Do your best not to go into debt, but once you are, get out fast by living like you are actually making significantly less!