Getting out of debt by 2025 may seem like a daunting task, but with proven strategies and the right information, it is an entirely achievable goal.
If you are part of the U.S. Hispanic community and want to take control of your finances, here at QuéOnnda we present an updated and detailed guide to transform your financial situation.
Know your debts
The first step is to get a complete and accurate picture of your financial obligations. Make a detailed list that includes:
Total amount of each debt: Records the outstanding balance of credit cards, personal loans, mortgages and any other obligations.
Interest rate: Note the interest rate of each debt, as it influences the total cost of financing over time.
Minimum monthly payments: Know the minimum amount you must pay each month to avoid surcharges and penalties.
Create a plan
There are two popular methods for eliminating debt, and choosing the right one will depend on your particular situation:
Snowball Method: Prioritize paying off the smallest debt while keeping payments on others to a minimum. This strategy gives you an emotional boost by eliminating debt gradually.
Avalanche Method: Focus on paying off debts with the highest interest rate first. This method will help you save money in the long run by reducing the total amount of interest paid.
In addition, take advantage of modern financial management applications such as Mint or You Need A Budget (YNAB), updated for 2025, which allow you to keep close track of your income, expenses and debt repayment progress.
Reduce expenses
Buzzy
Identifying and eliminating unnecessary expenses is key to freeing up resources to pay down debt. Some strategies include:
Cooking at home: Preparing your meals considerably reduces costs compared to eating out.
Cancel subscriptions: Review and delete services or memberships that you do not use regularly.
Take advantage of discounts and promotions: Use coupons, cashback apps and loyalty programs to optimize your everyday shopping.
Seeking other income
Increasing your income can speed up the debt repayment process. Some effective options in 2025 include:
Part-time or freelance jobs: Platforms such as Upwork and Fiverr offer opportunities for freelance projects.
Selling items: Use Facebook Marketplace or eBay to sell things you no longer need.
Collaborative economy: Participate in transportation or delivery apps, such as Uber or DoorDash, and explore new emerging platforms in the market.
Negotiate
Contact your lenders to explore renegotiation options. Often times, creditors are willing to:
Reduce interest rates: A lower rate can significantly reduce the amount of interest you pay.
Extend terms or adjust minimum payments: This can ease monthly financial pressure and make it easier to meet your obligations.
Remember that organizations such as the Hispanic Federation and the National Foundation for Credit Counseling (NFCC) offer free counseling to help you negotiate and structure a payment plan tailored to your needs.
The first step to getting out of debt is understanding how much you owe
QuéOnnda.com
