Monday, September 19, 2016
How To Get Out Of Debt
You need to WANT IT!
The first step to getting out of debt is to really want it. It has to be YOU, not someone else telling you that you should get out of debt. It starts with you, because you're going to be living it. You're going to be the one paying it off. If you're wishy washy and not ready to commit to this, it won't happen. You don't wander out of debt, you decide to get out of debt.
Make a Plan
There are many debt repayment systems such as the debt snowball (paying smallest to largest debt) or the debt avalanche (paying largest interests to smallest) you will need to decide HOW you will get out of debt. You need a plan, without a plan you won't be focused and it won't be long before your running off the track.
Implement the Plan
Create your budget, and implement your plan. The budget is key to controlling your money. It's the contract that you need to make work. While creating the budget you need to make sacrifices, get current on bills, if you're not and you need to live within your means. You need to stop depending on a credit card, because getting out of debt means not putting more on credit.
Remind yourself why you want to get out of debt. When you're in debt, and life happens you don't have alot of options. That's why it's important to have an emergency fund. If you follow Dave Ramsey, he suggests 1000$ baby emergency fund. This is the first step to his plan, after that you start to tackle debt with the debt snowball. Having that baby emergency fund breaks the dependency on credit when something happens.
Staying motivated is crucial when you're getting out of debt. It's not easy to cut out your lifestyle, and see others being carefree. However, you don't know their specifics. Worry about yourself, and fix your situation. You must make the changes necessary.