Nuke Debt


 Debt Articles



1. Admit to yourself that you are the problem.

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 yourself.
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.
While 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 debt.

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.

6. Don’t 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.

Getting 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!



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