41 simple ways to offset debts

Here is a list of ideas and advice from different people. There are several tips about being creative so that you spend less on entertainment, eating out, and the like. They are basically the same tip — but with different suggestions.

Find the tips that will work best for you, and try them out.

1.      Don’t get into debt. Use cash for all your purchases and don’t take on any debt except when in dire need of cash.

2.     Spend less than you earn.

3.     Take stock of all your liabilities, so you know exactly how much you owe to the world. Put them in a spreadsheet with monthly payments; interest amounts and a running grand total of all your balances. Update it monthly as you pay off debt, and watch the overall amount go down slowly. It’s very motivational.

4.     Stop living on credit before your next payday. Stop getting further into debt.

5.     Avoid eating out. Cook your own meals, except on very special occasions.

6.     For entertainment, visit friends and be creative on how to entertain yourselves and your family without spending a dime.

7.     Plan for future expenses so you don’t have to go into debt when they come up.

8.     Make a budget. Plan every Naira.

9.     Be on the same page as your spouse or partner. Competing interests are suicide.

10. Recognize your spending tendencies (and your family) and place limits on them.

11.   Keep trying and don’t give up. Make a commitment, and if you aren’t getting out of debt, revisit that commitment. Change is difficult and it takes drastic change in mindset and behaviours to get out of debt. Anyone can do it – as long as you really want to do it.

12. Praise yourself for every small accomplishment. But, don’t praise yourself by spending frivolously.

13.  Find the tools that work for you and stick to them. If the tools aren’t working, find new tools. There are plenty of tools and ideas out there – for free.

14. Change yourself. If you have a spouse or partner that is contributing to the debt, it can be a big challenge to get them to change. Focus first on changing your behaviours and attitude.

15.  Be realistic. If you started accumulating debt three or four years ago, realize that it will probably take you more than three or four years to get out of that debt and stay out of debt.

16. Create a realistic budget. Put as much money as you can towards paying down debt and having an emergency fund, but allow for a little bit of.

17.  Eliminate. Take a hard look at what’s truly necessary, and be willing to make compromises. Cable TV, and lunches in the office cafeteria are not necessities. You will be amazed at how much of a difference this few extra Naira will make.

18. Be patient. Debt reduction is a long, slow process. Depending on the method you use, you may see no significant progress at first, but it will happen.

19. Stop borrowing money – no matter what! This means no more car loans, no more cash advances, etc. If you can’t afford to buy something with CASH you have now, then YOU CAN’T AFFORD TO BUY IT.

20.            Save up the money and buy it with cash. By the time you have saved up the money, it’s very likely you will have realized you don’t even need the item you were thinking about buying anyway. This happens all the time.

21. Make a plan … ANY plan. You are better off with a mediocre plan than no plan at all.

22.            Have a long range vision. Keep your eyes focused on where you will be five (or ten, or fifteen) years from now, because getting out of debt takes time.

23. Find your purpose. Is it your children or starting a new business? Finding motivation beyond the money drives our passion. Otherwise our drive is limited. This passion will help you find out the ‘right’ things to do like stop borrowing, creating budget, etc. Take a look at the things you value deeply and view that framework to judge your actions.

24.            Focus on the debt and getting out of it. Not focusing and humming along on credit is what gets people in trouble every time.

25.Change how you think of money. Calculate how much money you make per hour. Do this regardless of whether you are a business owner, salaried or hourly employee. Now apply the time factor to any purchase you make. For example, is that 32″ flat screen television you’re thinking of purchasing worth 10, 20 or 30 hours of your time. Once the Naira amount is removed from the equation and the time factor applied, spending habits can change overnight.

26.            Educate yourself on your alternatives. Sometimes we spend a lot on things because we assume there are no alternatives. Is cooking at home as bad as you think? What about ten-year-old cars? Roommates? Cheaper parts of town? Libraries? Ask questions, do some experimenting, do some research. Find your biggest expenditures and do some brainstorming and some googling.

27.Think about your goals. The author of The Tightwad Gazette was willing to work harder to save on food, clothing, and entertainment so she could spend more on housing, have more kids, and let one parent stay home with the kids. Quit spending money on stuff you don’t care about.

28.            Pay attention to whether you’re buying stuff just because of societal norms or parental expectations or keeping up with the Joneses. Hang around people who are the way you want to be so that peer pressure can be used for good instead of evil!

29.            Make it a habit. You will be very happy when you have some extra spending/saving money after your payments stop.

30.Think about wealth rather than debt. If you think “I’m going to get out of debt” you will keep thinking about debt. If you think “My financial situation will contribute to my overall wealth,” that thought can keep you going.

31.  Extra cash. When you make extra money from overtime or bonuses, use it to pay debt.

32. Debt slavery. Realize that (almost any) debt = slavery. If you don’t mind debt, why get out of it?

33.  Think positive. Telling yourself “NO” or choosing not to go on vacation can be annoying, looking around and feeling like everyone else has more money than you can also generate the same feeling. However, adapting to the belief of thinking about how each month you owe ₦1 less is a good month might be helpful.

34.Be willing to make sacrifices. Remember, you own things. They do not own you.

35.  Put a note in your wallet with this text: “DO I REALLY REALLY NEED THIS?”

36.When you make your budget, be honest. Make sure you budget for gifts, entertainment and whatever other things we all spend too much money on and don’t like admitting.

37. Find free or low cost entertainment. Check the newspaper, or look online and see what upcoming events are going on. Many towns have free concerts and free arts and crafts classes; check for free events and feel free to attend one.

38.Be creative. Learn to paint or repair house equipments; sew curtains and pillows. Read ‘Do It Yourself’ post and practice some really great ideas.

39.Start a garden. Grow tomatoes, corn, vegetables, mangoes, oranges, etc.

40.            Educate your children. Above, teach your children early so they don’t make the same mistakes you made.

41. Create a balance sheet and update it every month. List your assets on one side and your liabilities on the other. Assets should only include things you can easily sell and there approximate value. Liabilities should include all of the money you owe others. If your starting value is negative your goal should be to make that number smaller every month. If your number is positive, your goal should be to make that number larger every month. The real value of this exercise is it puts you in the habit of checking your financial situation every month which will reinforce habits that are increasing your wealth and hopefully allow you to catch and stop habits that are decreasing your wealth.

I hope this serves as a valuable resource — let me know what you think in the comments, and feel free to add your tips!