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HOW TO DIG YOURSELF OUT OF DEBT
Are you drowning in a pool of debt? Being in debt is one of the worst situations you can be in. It takes a toll on a person’s life with all the sleepless nights, strained relationships, and being stressed out all the time.
You feel helpless, constantly trying to figure out how you are going to pay the bills, it never leaves your mind.
I’ve been there, it is not an easy road to dig yourself out of debt. Many people try to get out of debt, but life happens and they find themselves right back where they started. Getting out of debt can be one of the hardest things to do. But with a lot of discipline, hard work and a plan, YOU CAN DO IT!!
Change your behavior
The first thing you need to work on is changing your behavior. After all, your behavior is the reason you are in debt in the first place. You need to change from being a spender into a saver. During this whole process you need to STOP SPENDING and keep SAVING MONEY on anything and everything in the front of you thoughts constantly. Every penny you can save in your daily life needs to go into digging yourself out of debt.
Face the music
You will never be able to get out of debt by ignoring it. I know it can be very scary but you need to face the music. You need figure out exactly how much debt you are in. Grab all your credit card and all other bills and calculate the total amount due. List each bill on a piece of paper. Next to each write down the total balance and the interest rate you are being charged.
DIG YOURSELF OUT OF DEBT
Choose a plan of action
Two of the most common methods are the “Debt Stacking” method and the “Snowball Debt” method.
The Debt Stacking method is done by attacking the debt with the highest interest first. Once that is paid you stack the amount to the minimum payment you are making on the next highest interest debt and so on until you’re debt free.
The Debt Snowball method is where you attack the debt with the lowest balance first. Once that is paid, you stack the amount to the minimum payment you are making on the next lowest balance debt and so on.
Personally I prefer the Snowball Debt method; although the Debt Stacking method will save you some money on interest in the long run, you see results faster with the Snowball Debt method. Just seeing the results of having one debt paid off is so encouraging and will help to keep on going.
It’s your choice which method you choose. You just need to pick one and stick with it no matter what and you will soon start to see the light at the end of the tunnel.
I highly recommend grabbing a copy of Dave Ramsey’s “The Total Money Makeover”. This book is what helped me so much to get out of debt and I know that anyone who reads it will benefit from it.
Do whatever it takes
Getting out of debt not only requires you to live within you mean, it requires you to live way below your means until you are rid of it. Do whatever it takes to bring in some extra income.
There are tons of things you can do to earn some extra cash to throw at your debt. Think outside the box, you can get a second job, have a yard sale, complete surveys in your spare time, rent out a room, babysit, sell your stuff, mow lawns, clean houses, I can go on and on, there are endless ways to bring in extra income.
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The point is do whatever it takes, the more money you can throw at digging yourself out of debt, the faster it’ll get paid off, which also translates to saving more money by reducing the amount of interest you are paying.
Never give up
Finally, never give up on the fight. It is a lot of hard work, but it will pay off in the end. Keep at it and do whatever it takes. Believe me, you will be so much happier once you are debt free.
DIG YOURSELF OUT OF DEBT
So what do you do if you have done everything you possibly could to cut spending but still can not make ends meet?
You may need to consolidate your debt. Accredited Debt Relief may be able to help you out. Check out their free savings calculator to see how much you can lower your debt payments.
Tell us your story, please leave a comment or email me directly if you would like to share in a guest post.
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