It can be hard to manage debt on your own but if you’ve got a plan and do it right, you’ll be able to tackle it. For the best DIY approach to debt reduction is to cut expenses and optimize income. What follows are real life ways you can cut your debt on your own.

1.  Analyze Your Current Spending 

You should always know where your money is going each month before you make a change. Check what you are spending on by checking old bank accounts or a budgeting app. Divide up your spending according to your expenses like rent, groceries, electricity, dining out, entertainment, etc. When you’ve got the picture, it’ll be much more manageable to pinpoint where you can shave.

2.  Cut Non-Essential Expenses 

Be on the lookout for ways to cut back or eliminate discretionary expenditures. Here are a few ideas: 

– Eating Out: Avoid going out for dinner and instead, cook at home. This can be made much simpler and time and money-saving by planning meals and cooking in bulk.

– Subscriptions/Memberships: Go through every subscription (streaming, magazines, gyms) and stop or suspend those you are not using often.

– Cost of Entertainment: Find things to do that is cost-free or free, such as home theater movies, local festivals, or outdoor activities.

3.  Save on Monthly Bills 

Lower your fixed monthly payments to leave more money available to pay down debt. Here are some strategies: 

– Get Better Rates/Discounts: Call providers (internet, phone, insurance) to get lower rates or discounts. : Many businesses offer loyalty points or special rates to customers who ask.

– Renew to Lower-Price Providers: Comparison-shop for cheaper rates on car insurance, utilities, and cell phones.

– Save Money: Easy things such as shutting down lights, unplugging appliances and resetting your thermostat save money on your electricity bills.

4.  Avoid New Debt 

You can’t have new debt if you want to cut your debts seriously. Reduce or stop using credit cards and use cash or a debit card for daily needs. In the event of a need, use savings and not credit if you can.

5.  Make Extra Payments Toward Debt 

Every little bit you can put towards your debt adds up in the long run. Think of biweekly instead of monthly payments which can save you some interest over the life of the loan. And if you ever have any lucky breaks such as a tax refund or bonus, add some of that money to your debt.

6.  How to Make More Money from Home.

Reducing costs is only one part of the game. Increase income and pay off debt faster. Below are some of the tips you can use to make more money:

– Side Gig: Find a freelance, part time or gig economy gig that works for you. Examples: online tutoring, pet sitting or food delivery.

– Sell Junk: Remove junk and get extra cash selling the things you no longer use such as clothing, electronics or furniture.

– Tap Your Skill: If you have an artistic talent such as writing, graphics design, or photography, start making money from Fiverr, Upwork, or Etsy.

7.  Check out Debt Consolidation If You Can Save Money By It.

If you have many debts with high interest, paying them all off and converting to one low interest rate loan may make it easier to pay and lower your interest. There are personal loans, balance transfer credit cards or debt consolidation loans, but watch for fees and ensure you will actually save money in the long run.

8.  Track Your Progress and Adjust 

When you pay down debt, see your progress every month. See the weight go down can be inspiring and keep you motivated. Modify it if necessary especially if you are going to have unexpected costs or income.

Debt reduction by yourself is hard work, but you can do it if you have a plan. With expenses lowered, income raised and discipline maintained, you will be on the road to financial independence at a moderate pace. Never forget that each dollar you save or earn is one step closer to debt free. Stay with the intention, keep getting those mini victories in.