GET OUT OF DEBT
1. Admit to yourself that you are the
Sometimes the reason for debt occurs because of
something unforeseen, such as a medical emergency or a loss of
employment. But often it is a series of smaller expenses that seem
reasonable at the time, but eventually add up to trouble. You
shouldn’t attempt to live a lifestyle that you are not capable of
affording. If you try to keep up with the Jones’, you are bound to
fall into a world of debt.
2. Play tricks on
Don’t trust your willpower; stop the behavior
that got you into trouble in the first place. Take the credit cards
out of your wallet and lock them in a drawer to create a physical
barrier between you and you’re spending, or even freeze a credit
card in a glass of water. This way you are fighting the urge to
spend, and allowing yourself to have a cooling off period- often
finding that you can live without your desired item. For large
purchases, put the money aside in an envelope until you have enough
money to purchase your desired item.
3. Follow a specific game plan.
Now that you have overcome your urge to spend, its time to start
paying off your debts. If there is a large disparity between
interest rates, start with the highest-rate debt first, making the
maximum monthly payments you can afford- while paying the minimum
required on the rest of your debts. If there is not a large
disparity between interest rates, pay off your smallest debt first.
4. Don’t just take the easy way out.
it could be easy to take out a home equity loan, sell something of
value, etc. it might not help you in the long-run. You have to
ensure that you are not going to fall back into debt, so it is
essential to change your spending habits- or you will fall back into
5. Get help!
If you can’t fight the
battle alone, get help. A credit counselor can provide try to
negotiate your debt down, offer support and help to devise a payment
plan that can help you get out of debt.
focus 100% on your debt.
While the debt can consume you,
you should ensure that you are paying your other bills, as well as
setting aside money for unforeseen circumstances.
out of debt can be a difficult process, mainly because of interest;
however, it is similar to breaking an addiction. You have to focus
on changing your lifestyle in order to get out of debt. This can be
the biggest obstacle, but it can be done!