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Personal finance expert coaching consumers on getting out of debt

A new study found half of Americans making six figures are living paycheck to paycheck. 51% of high earners struggling to keep up with inflation.
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TAMPA BAY, Fla. — Personal finance expert and bestselling author Anthony O’Neal shares real, relevant and relatable financial lessons with millions via his podcast, The Table.

ABC Action News sat down with O’Neal for debt-busting advice after a new study by PYMNTS and Lending Club found half of the nation's high earners are living paycheck to paycheck.

O’Neal said the first step to tackling debt is prioritizing basic needs.

“And that's the four walls," he said. "That's your food, your housing, your transportation, your utilities.”

Next, get rid of what he calls unnecessary stuff.

“Unnecessary things are like extra apps," he said. "You don't need Netflix, Hulu and Amazon Prime. And for single people—we don't need to be going on dates every single weekend. So, let's get focused on a budget.”

O’Neal recommended www.everydollar.com to track the flow of your money. Just fill in the blanks for monthly income and expenses to see where you're leaking cash.

“The whole thing when it comes to a zero-based budget is to make sure you spend everything on paper before the end of the month so you can know how are you going to go into the next month," he said. "And we have to stop looking at a budget as a problem."

If you've cut the extras and come up short at the end of the month, consider a side hustle utilizing skills you use in your day job. O’Neal uses schoolteachers as an example.

“You're teaching students for a living. Well, what if you came home and you start a tutoring business?" he said.

He also suggested selling everything that doesn't fit your budget, including homes with high payments and luxury vehicles you can’t afford.

“Right now, I'm assessing every single thing that requires any kind of money from me. And I’m saying, 'What is the best thing for me and my family moving forward?'” he said.

When it comes to credit card balances, O’Neal and other experts recommend the snowball debt method. List your debts from smallest to largest and throw everything at the smallest while making minimum payments on the rest.

After you pay off the first debt, put that money toward the next. Repeat the process until you are debt free.