Do you know that eight out of 10 Americans have debt? While 69% prefer to not have debt, they think it is a necessity. Almost the same percentage believe that loans and credit cards expanded their opportunities.
Whether you believe debt is a tool, a necessity or a fact of life, one thing is quite certain: if you do not control debt, debt will control you. If you are at that point where all those debts overwhelm you, control your life, limit your freedom and diminish your happiness, it is time to toughen up and reclaim your life, freedom, peace of mind and happiness. Credit cards, student loans, car loans, personal loans and mortgages need not be your constant companions; you can fight back and manage your debts until you become debt-free.
Don’t Get More Debt
The most logical step into getting out of debt is to avoid getting more debts. This takes discipline as you will need to live within your means. When you spend more than you make, you are burying yourself more and more into the debt pit. So, start your journey to a debt-free life by saying “no” to more debts from this point forward.
Don’t Carry Credit Cards
Dave Ramsey recommends “plastectomy” or cutting all your credit cards (with no intention of replacing them, of course) to start the process of getting out of debt. Credit cards give you the illusion that you can afford stuff when, in fact, you cannot. By using cash, debit cards or prepaid credit cards, you will only be using money that you currently have. If you think that a “total plastectomy” is too drastic, leave one or two for convenience purposes but be sure to pay your bill right away and avoid accruing interest charges.
Create a Budget
If you want to get rid of debt, you need to set up your budget. Prioritize your necessities (food, shelter, utilities and insurance) then cut unnecessary expenses. By getting a clear picture of your income and expenses, it will be easier to know how much you can allocate into payment of your existing debts. View your budget not as a limitation but as a tool to accomplish your goals.
Increase Your Income
Start looking at what you can do to increase your income and pay off your debts quickly. You make rent out a house you do not use, take a second job, or sell things you do not need. You may even start a home business or find ways to earn money online. Look and see what you can do to bring in more revenue and pay off your debts and live a more comfortable financial life.
Write Off Debts
For this step, you need to practice lots of caution. You can find many companies offering their services to help you write off your debts. Some of them may be able to help you but there are also others who will just make the situation worse. You may want to research is DTSS legit to get a deeper insight into being able to write off your debts.
Find Your Motivation Behind a Debt-Free Life
The road to a debt-free life is bumpy and the journey will sometimes feel like it’s never-ending. Delve deeper into yourself as to why you want to get out of debt because this motivation is that thing that will keep you going in this long arduous journey. Envision your life without debt; how will it affect you, your kids, your family tree? If your “why” cannot make you cry, it is not strong enough. You will have to dig deeper.
Conclusion
Debt may be inevitable for some but a debt-free life is achievable. With the right perspective, determination and hard work, you can overcome the obstacles and get out of debt.