By Barbara Davidson

Posted on April 20, 2020

Are You on the Right Track to Eliminate Debt?

According to a recent study, over 70 percent of Americans named their finances as the most stressful issue in their lives.¹ With so many variables like unplanned expenses, bills and seasonal or unstable income, it’s easy to fall behind on payments and other responsibilities.

You probably realize that eliminating debt can you help you in more ways than just saving money on interest. But simply paying off all your debt is much easier said than done — it’s difficult to change your financial habits if you don’t have much wiggle room or have too many bills to manage.

But we’re here to help you find your footing. Take our quick quiz to check in on your finances and find out if you’re on the right track to eliminate your debt.

I follow a tight budget that designates where all of my income goes each month.

Yes, Every Month

Yes, Occasionally

Rarely

Never

I’ve found a way to either increase my income or lower my monthly expenses.

True

False

I pay more than the minimum amounts due on my credit bills

Yes, Whenever Possible

Yes, Occasionally

Rarely

Never

I track all of my debts and know exactly how much I owe after each payment.

True

False

I have enough money available right now to cover an unexpected $500 bill without using any form of credit.

True

False

If I get a bonus or raise at work, I usually treat myself instead of paying down my bills.

True

Occasionally

False

I know exactly what caused me to go into debt in the first place.

True

False

I look for ways to save money wherever I can — things like cooking from home, embracing cheap or free forms of entertainment, and using public transportation when possible.

True

Occasionally

False

Sometimes, I run out of money and I need to use my credit card to cover expenses towards the end of a pay cycle.

True

Occasionally

False

I have a group of friends and family with similar financial goals and priorities.

True

False

Not Sure

Debt Payoff Status Quiz

Great job! You seem to know the importance of living below your means with a frugal lifestyle.

With this strategy, you should be able to repay debt without accumulating more in no time.

You're almost there!

Although you’re probably making progress on debt repayment, there may be more that you could do now to eliminate your debt faster. With a little work on your saving and budgeting strategies, you might be able to stretch your current income and get out of debt sooner.

Time to improve your debt repayment strategy.

It doesn’t seem like you have an aggressive repayment strategy, and without a financial cushion, it will be easier to fall back into more debt. You might need to adopt some changes if you’re serious about getting rid of debt. Adopting a more frugal lifestyle, increasing your earning potential or more strategic budgeting can give you a jump start on your debt repayment.

Adopting a more frugal lifestyle, increasing your earning potential or more strategic budgeting can give you a jump start on your debt repayment.

References

¹White, A. (2020). 73% of Americans rank their finances as the No. 1 stress in life, according to new Capital One CreditWise survey.

About Barbara Davidson

Babs is Lead Content Strategist and financial guru. She loves exploring fresh ways to save more and enjoy life on a budget! When she’s not writing, you’ll find her binge-watching musicals, reading in the (sporadic) Chicago sunshine and discovering great new places to eat. Accio, tacos!