People get into debt because they do not earn enough. They also stay in debt because of the same reason. The only way to get out of debt is through labor and this does not mean just having a job. It is mental and physical labor that can be split into 3 parts.
1. Cut Down Your Spending
There is a great degree of mental effort invested into optimizing your spending and giving up on certain things. If you want to reduce debt, you should first start reducing your spending. Giving up on subscriptions, getting a cheaper mobile plan, or using public transportation are just a few ways in which you can save more money that you can use to pay off your debt. It can be difficult but get out of debt through labor and sacrifices to be rewarded later on in life.
2. Increase Your Income
Income is the trigger for debt. We want things that we cannot afford and we get into debt for them. Income is also how we end up paying off that debt. The focus should be to increase your income by either swapping jobs or even getting a second temporary job to use that extra revenue to pay off debt.
3. Pay Off Your Smallest Debt First
Lastly, the only thing that gets you out of debt is to pay it off. Ideally, you would pay it early as you will save cash on interest. This is also one way to get out of debt through labor because you will need to invest time and mental effort into prioritizing which debt should be paid off first. Ideally, your smallest debt should be paid first. If you have a large amount of money saved, you can use that to pay off smaller loans in full and some of your bigger loans. Doing this will free up cash that you would otherwise allocate to monthly payments.
