Tips for Cleaning Up Excessive Debt

Having excessive debt can cause enormous amounts of stress. Listed below are several tips to help you reduce your debt and end the worry of late or missed payments. 

Know the Amount of Money You Owe

In order to clean up debt, you need a starting place. Begin by gathering all of your current bills to identify the amount of money you need to pay out monthly. It’s also important to factor in other monthly expenses such as food, gas, and household supplies. Once you have that figure, deduct it from your total net income. The larger the amount remaining, the more likely you are to clean up your debt quickly.

Sticking to a Budget

Now that you know exactly what you owe to whom, you can use the information to reduce your debt. You enjoy going out with friends to dinner, the theater, and on occasion to the casino to play casino table games. Of course, there are things you may need to cut back on completely to stick to your budget, so it might mean you need to stop eating out or buying new clothes. This isn’t to say you have to stop doing everything you enjoy, but you may need to change the way you do certain things. If you enjoy a night at the casino, consider a way to find new casino bonuses you can cash in on to save yourself some money. Free spins are free, after all, so try to get as much for free as you can. Once your free spins are used up, stop playing and try again next week. If you enjoy eating out, consider inviting your friends round for dinner instead and ask them to bring a side dish each. You can still eat and socialise, but your budget will go significantly further. Without a budget in place, having the money to enjoy your time off becomes more difficult.

A Budget Helps You Now and in the Future

A budget helps you track your money. As a result, you reduce wasteful spending and learn ways to stretch every dollar. You also learn how to develop savings for things like a vacation, a down payment for a home, and your retirement. When you see exactly the amount of debt you have, you can start the process of reducing it. 

Adopt New Spending Habits

With a budget in place, you develop good spending habits. Instead of buying on impulse, consider all purchases ahead of time. For example, if you need a new roof, you look up several contractors to see who offers the best price and who has a good service record. 

Eliminating Wasteful Spending

Of course, you can only reduce excessive debt if you eliminate wasteful spending. You may have a habit of buying coffee on the way to the office and lunch daily. These two items alone can cost upwards of $250.00 or more each month. 

Credit Card Debt

On average, consumers owe over $8,000.00 in credit card debt. Unfortunately, it comes from two, three, or even four credit cards compiled. One card on its own is difficult on a tight budget. However, when you have multiple cards accruing interest, it can take years to pay them off. Paying your credit cards down needs to be a priority. Thankfully, there are several ways to achieve it quickly. One option is to refinance your home and use the money to pay off the cards completely. A second option is to take out a personal loan to consolidate the debt into one lower monthly payment. If you are not able to secure a loan, paying more than one card monthly and continuing until you pay it off will also provide effective results. 


Many people get into trouble with excessive debt due to unforeseen circumstances. The loss of income, a sudden illness, or a major unexpected expense. Regardless of the one that applies, it forces them to draw funds from their checking account to cover expenses. Having an emergency fund with at least 3 months the value of your monthly bills set aside will prevent this scenario from happening. 

Separate the Wants and Needs

People often confuse their wants and needs. A need is something essential whereas a want is something you desire. While working towards dissolving your excessive debt, refraining from indulging in wants will allow you to achieve your goal quickly. It’s fine to want things, after all, you work hard and deserve nice things. However, there’s a time and place for everything.

Excessive debt can cause you to stress daily. Taking steps to reduce it will allow you to return to a comfortable, stress-free lifestyle. 

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