Having lots of bills and loans to pay can be tough. We all want to be debt-free and reach the stage where we can finally declare we are financially free! Impossible? No, it’s not. There are plenty of people who have done it and I can’t wait until I’m one of them 🙂

Until then, here are 11 super simple ways to stay on top of your debt and be financially free.

1. Planning ahead: It’s the most crucial part of securing your future financially. Keeping this in mind, you will have more control over your money and expenses whether it’s for buying a home, starting a family or preparing for your retirement.

2. Creating a budget: It will help you be in control of your expenses in order for you to be able to reduce your spending. Furthermore, having a budget gives you ample room to enjoy the things you love such as taking your family for a holiday.

3. Planning for variable and fixed expenses: Considering these two things will help you keep your finances in check. Variable expenses include groceries, clothes and other activities. Fixed expenses are things like utilities and rent. This one step will help you avoid any unwanted surprises!

4. Saving money regularly: Saving money regularly will help you be happy with yourself. This should always be automatic and should be done every month. Never wait for the month to end in order to save because you will have nothing to save due to expenses. Pay yourself first!

5. Paying off credit cards and loans: It makes sense to pay off your credit cards and loans that have a high interest rate first. If you have too many loans to handle, and have trouble keeping up with payments, look around for companies that can offer secured loans for debt consolidation. This way, you don’t have to worry about making multiple payments each month.

6. Reviewing of your bank statements: Take some time and go through your bank statements. You should be able to understand if there are any discrepancies on your incoming or outgoing cash flow. Combine both the digital and the traditional bank statements and review them monthly to check for any errors!

7. Keeping both the terms and conditions of the financial products and records of your bank statement: Make sure your bank statement records go back at least twelve months and have a copy of the terms and conditions. The physical bank statements can be used to apply for loans, credit card or even a mortgage.

8. Shopping around: Take time and find out whether your provider is still giving you the best deal. Feel free to look around, negotiate and always look for the best rate!

9. Checking out the benefits of help and free resources: When you go online, there are a lot of free apps that can help you manage your money. I personally use Mint.com to help me track my expenses and budget.

10. Addressing the Issue: Why did you get into debt in the first place? In order to stay out of debt, you want to address the reason you got into debt and make sure you are setting yourself up for success in the future.

11. Consider a reverse mortgage. When you retire, you may find yourself needing quick cash to cover medical bills or other expenses. One way to improve your financial situation is to request a reverse mortgage. That type of mortgage involves a reverse mortgage lender paying you on a regular basis, rather than you having to make regular loan payments. By requesting such a loan from your lender you will give yourself plenty of time to pay off your loan balance. Answer these questions to see if a reverse mortgage is right for you.

What else would you add to the list?


Melanie is a freelance writer currently living in Portland, Oregon. She is passionate about education, financial literacy, and empowering people to take control of their finances. She writes about breaking up with debt, freelancing, and side hustle adventures at DearDebt.com.

Currently she puts more than 50% of her income towards debt, while living a frugal, fun life. In addition to her love of personal finance, art and music, she is also a karaoke master. Follow the adventure @DearDebtBlog.

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9 responses to “11 Super Simple Ways to Stay On Top of Your Debt & Be Financially Free”

  1. I have some debts and hopefully I will be debt free before this year ends. As of now, I’m trying to find more job and keep track of my expenses.
    Kate @ Money Propeller recently posted…Friday Jet Fuel #43My Profile

  2. Planning ahead is huge. If you just tell your money where to go and where you tell it is your debt, it’s going to decrease quickly. I’ve been paying $2,700 / month onto my student loans this year, which is more than half of my take home pay. This wouldn’t have happened but for planning ahead.
    Natalie @ Financegirl recently posted…Asset Allocation: The Most Important Part of Your Investment EquationMy Profile

  3. Chonce says:

    I can’t wait to be financial free either and this is a great list. I would add living below your means and this could easily translate into saving more money and lowering your expenses. Lifestyle inflation usually hold people back from becoming debt free in my opinion.
    Chonce recently posted…How to Earn Money By Giving Your OpinionMy Profile

  4. Great list! Keeping a budget is key for us. Without it, it’s really hard to keep track of everything and stay on course.
    Holly@ClubThrifty recently posted…Is Entrepreneurship Really Better than the 9-5?My Profile

  5. This is a very nice checklist to have while embarking on a debt elimination journey. It can be overwhelming to figure out just how to start with eliminating your debt but this is almost like a guided roadmap through it.
    Aparna @ Elementum Money recently posted…Top 5 Spend Tracker AppsMy Profile

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