Debt Strategies: Do It Yourself

Debt Strategies Do it yourself

If you’re struggling with your finances, then you may want to try the best debt reduction strategies: do it yourself! Most have money problems due to psychological reasons rather than financial ones. While some take on huge debts due to emergencies, more people rack up payments from unnecessary purchases.

Often, people live beyond their means in exchange for paralyzing masses of unpaid balances. As a result, many people are unable to access many services and products they sorely need. To avoid such circumstances, you must do it yourself. Follow the debt strategies listed below, so you can achieve financial freedom.

Make a Budget

budget planning debt reduction

A budget is just a written plan detailing how you will spend your money. It is your way of allocating your monthly income into each of your needs and wants. Some people mistakenly assume that a budget shackles them since it prohibits buying stuff. However, they might be doing it wrong because there is a budget plan that allows buying non-essentials.

Do-it-yourself debt reductions strategies like the 50/30/20 budget don’t have to be too restrictive. To use it, you must first calculate your income after tax deductions. Then, spend 50% of it on necessities like groceries and monthly payments like basic utilities. If it isn’t enough to cover those, you may need to deduct from your “wants” allocation. 

This is the amount set aside for stuff you want, roughly 30% of your monthly income. You should have some fun too, so you’re more likely to stick with your financial plan. In addition, it serves as an extra amount you need to cover a sudden or neglected expense. Your budget must account for unexpected payments since people usually have to in real life.

Lastly, the remaining 20% must be used to pay off your debts. List your personal loans and credit card debts, and figure out which ones to pay back. Also, this must enable you to save money for a rainy day. If there is any left, keep it as an emergency fund, so you can use it when the need arises.

Diligently Make Payments

Once you’ve made your personal budget plan, it’s time for constant and on-time payments to your lenders. As you may know, late payments have corresponding costly penalties and fees. In addition, merely paying the minimum lets interest build up over time. As much as possible, pay above your minimum payments in order to avoid accumulating excessive interest.

Diligent payments improve your credit score as it shows you reliably repay your debts. After all, it’s a number that proves how much your lenders can trust that you’ll pay them back. If you turn in tardy payments, your rating will lower and your lenders’ trust will wane. This is one of the do-it-yourself debt reduction strategies that truly help long-term.

Do It Yourself: Get a Part-Time Job

do it yourself debt strategies

Another great way to take your debts down is by getting a part-time job. More money in your hands means more you may put into payments. That’s why one of the best debt reduction strategies is having a side gig, albeit temporary. 

You may choose temporary roles that may earn you that much-needed cash for your payments.

Stop Using Credit Cards

Another tactic in managing personal finances is to refrain from going into debt in the first place. This means refusing to use multiple credit cards since they enable you to accrue payments you can’t afford. 

Many succumb to a burdensome debt due to haphazard card swipes. In fact, many credit counseling organizations recommend the use of just one card for emergencies.

Consider Debt Consolidation

debt consolidation

If you’ve already accrued copious amounts of debt, then you may want to take out a debt consolidation loan. It involves rolling your unsecured debts into one and using a borrowed lump sum to pay them simultaneously. You will then have to pay that total balance which includes a reduced interest rate. Ultimately, it aims to simplify and facilitate debt payoff.

Unlike the other debt reduction strategies, it isn’t entirely do-it-yourself. You’ll need to apply for it at a bank or credit union. Depending on your chosen financial institution and your credit rating, you will be offered varying loan terms and conditions. Unfortunately, having a poor credit rating may earn you the highest interest rate the bank can offer.

Still, you may take one out by having a person with good credit co-sign the consolidation. You may also turn to online lenders in lieu of brick-and-mortar options. Additionally, you may try to build your credit first through diligent payments and an organized budget plan. As a last resort, you may check other debt management plans from credit counseling companies.


When it comes to debt reduction strategies, there are many do-it-yourself options available. However, these still require dedication and discipline to pull off. In order to stay financially stable, you must keep such frugal values in your daily life. As tremendous expenses like student loans are necessary, many people borrow for things that aren’t, saddling them with huge debts.

There are other debt reduction strategies available, such as balance transfer credit cards. Moreover, you may follow the debt snowball method that starts with the smallest debts first. If you require additional assistance, then you may want to ask a credit counseling company for help. Use every method at your disposal, and you’ll soon find yourself free from debt!