6. Pay off your debts
Carrying a lot of debt is probably the biggest money mistake you can make. However, if you want to change your financial future, you should definitely take your debts off your shoulders as soon as possible.
You could start by listing all of your current debts and figure out the minimum amount you owe to remain up to date with each debt. Only by giving the minimum amount won’t get you out of debt fast, so you should evaluate your fixed expenses and see how much of your discretionary spending budget you can allocate toward debt repayment.
Also, try to minimize the interest rate on the debt by asking the issuer for a lower rate, consolidating multiple debts into one debt, or transferring high-interest debt to a low-interest credit card, such as a balance transfer card. Then, you should create a debt payment plan to pay off the debt as quickly as you can.
