Live Below Your Means to Lower Your Debt

One of the simplest ways to lower debt is to start living below your means. Why many people get into debt in the first place is that they are living beyond their means.  They go off and pay with credit cards what they can’t immediately pay for in cash.

Lower Debt By Living Below Your Means


Living below your means will free up money to go toward paying off your debt – and once out of debt this free cash will go towards savings and building wealth.  If you want to lower debt, try some of these strategies.

Some easy ways to start living below your means and lower debt:

1. Stop eating and ordering out – Eat at home.

2. Downgrade cable or stop it all together – rent movies and tvs series for free from the library, or get a basic netflix account.

3. Stop smoking – at 7-10 dollars a pack, this is an expensive habit and will help lower debt immediately.

4. Cut down on your alcohol consumption – both at home and out – not drink one less night a week and you’ll see your liquor bill decrease – put that towards lowering your debt.

5. Carpool – sounds old fashioned – but a car is a big expensive and if you can save a few hundred month your have made great strides towards lower debt.

6. Clean out your closets before you shop – you’ll find clothes you forgot you had – you won’t have to shop and you’ll lower debt without doing much of anything at all.

7. Don’t go grocery shopping – Resolve to only go grocery shopping once a week – and dig through the pantry and freezer to use up what you have instead of running out for new ingredients.  Check a site like to find recipes around the ingredients you do have.

Lower Debt By Getting Better Terms

Don’t be afraid to ask for a better interest rate on your balance.  It can’t hurt and if you have  been paying on time and have an offer in hand from another company, you just might see a reduction.  As soon as you have negotiated acceptable payment terms, begin paying off the lowest interest rate cards very first. This appears like it is backwards suggestions to lower debt, but it’s not. Credit cards with lower interest rates accrue much less interest monthly, meaning, more of your payment goes to principal instead of interest. When more of your payments go toward the principal balance, it leads to paying off the balance faster and, in turn, will lower debt fast.

Cards with greater interest rates are the opposite. Most of the payment goes toward interest, your principal balance barely drops and it takes significantly longer to pay off the outstanding balance.

Lower Debt – Track Your Food Bill

Now that you have stopped eating out, you’ll want to look at one of your next greatest expenses – your food bill.  Shave a few hundred dollars a month off at the grocery store and lower debt immediately. Carefully track your food bill to look for approaches to reduce spending.   Can you buy cheaper cuts of meat, cut down on individually packaged snacks or eliminate one food group – like soda all together.  Acquiring in bulk can save cash as long as it is not for items your family members will just consume much more speedily. Take into account bulk ice cream bars as an example. It could appear to be an excellent deal to buy a case at a time, but if your children just eat far more ice cream bars, it is not a savings. Experiment with generic or store-brand items. Numerous items have a store-brand range which is equal towards the name brand.

If you have a number of credit cards, do not store them inside your wallet. The temptation to purchase some thing on impulse can be strong and you could be paying for months on a acquire you could have done without. Consider carrying only one credit card with you. In the event you do want to make purchases, your balance is simple to understand when you receive your monthly statement.

The easiest strategy to lower debt is to pay it off.

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