5 Powerful Steps to Eliminate Debt Fast
Now I know we didn’t wake up this morning to say “Hey, I want to get in debt today!” It just kind of happened, right? Eliminating debt can be difficult. If we don’t stop it in time it will create unhealthy stress in our lives. I hear this way too often: “I just had to get these new pair of shoes because they matched my out fit” or my personal favorite “It was on sale and I just had to get it.” We as humans seem to have this really contagious disease that we just can’t seem to cure called impulse buying.
If we are not careful it can get us into unwanted debt fast. If we can just control those emotions and use just a little common sense we can easily live within our means. I know for most people that this is easier said than done but, I know the repercussions first hand for what debt can have in one’s life and I paid for it in many ways. In a sense you can say that it cost me my marriage.You see, I had a problem controlling my spending. I always had to have the best or the biggest of everything.
I was going to get what I wanted and no one was going to tell me otherwise. This selfish behavior pulled me into debt fast. I saw the warning signs but, I ignored them anyway. My wife, at the time, told me to stop and I still didn’t listen. The only time I got it was was when she left me. Over time I have gotten my act together and eliminated my debt and I am now debt free. I want you to learn from my mistakes and this is why I want to share with you the 5 powerful steps to eliminate debt fast:
1. Common Sense
Using common sense to eliminate debt ladies and gentleman can save us a whole lot of stress. We all want nice things… heck who doesn’t!? We always find ourselves wanting to reward ourselves or our loved ones, but we have to embrace that little switch in our heads that tell us “Hey, that’s enough!!” By listening to this switch will help eliminate debt. If you know you don’t have the money to spend on an item, don’t get it. Swiping your credit card is not the answer. I suggest using cash instead of using those high interest credit cards to prevent yourself from burying yourselves further into debt.
2. Budget Budget Budget
This is the only way that you can get a real firm grip on your finances. Take the time to set out a realistic plan that you know that you can follow. For those who have spouses, sit down together and think about which benefits in your life that you can do without to help yourselves eliminate debt faster. Try cutting out some coupons (my girlfriend taught me this) that comes out in the Sunday’s paper to lower the cost of groceries.Try eating at home more often, cut out eating at various restaurants, purchase energy efficient light bulbs, cut the cost of your cellular plan etc… get it? Set out a realistic goal, follow and stick to it! A well thought out budget will help you to get out of debt and stay out of debt.
3. Start Saving and cut off those credit cards
Getting out of debt is as much about paying off debt as it is about avoiding new debt. That’s why it’s important to prepare for those unwanted surprises like – car repairs, medical bills, time off from work – basically any expense or mishap that could cause you to pull out that credit card and start spending again. Estimate how much of a cushion you’ll need to shield yourself from surprise expenses; then set that amount aside in an emergency fund. Just set aside a small amount each month even $10 per paycheck is a start.
4. Eliminate Debt
Now it’s time to start paying off your debts one at a time.Take the money that you’ve freed up with your new budget and new spending habits, and apply it to your debt. Then keep at it! Do NOT Stop!!.. even if you can pay an extra $5 on a credit card or an extra $15 towards your auto loan. Keep going until all of your debt is paid in full and eliminated once and for all. It may take a while but, if you stick to the plan you’ll arrive at that finish line a stronger, happier – and most importantly – DEBT-FREE person!
5. Be mindful of your credit score
Pay Your Bills on Time! There are a number of factors that go into a credit score, but one of the most important is paying your bills on time. Do whatever is necessary not to forget a payment, set a reminder on your cell phone, on your outlook or even on your bank’s bill pay. Make sure you make the payment far enough in advance of the due date so that there is no chance it will be late. Don’t close any accounts: as a general rule, don’t close credit cards and other revolving accounts.
It will hurt your credit score rather than help.You need at least one trade line to keep your credit in good standing. One of the factors in determining credit score is the amount of debt you have in comparison to the amount of available credit. The greater the available credit, the better. You can always cut up some of your cards to avoid further debt but, don’t cancel them. Again, we are trying to eliminate debt.
To learn a step-by-step approach to debt reduction check out Dave Ramsey’s book, ” The Total Money Makeover”
The Total Money Makeover: A Proven Plan for Financial Fitness
Kenneth Thomas is a outdoor freak that loves to spend time with his family. In his spare time he reaches out to individuals that are in need or want of a better life style…whether it is through their personal finances or personal health. Did you find those”5 powerful tips to eliminate debt fast” useful? You can learn more about Kenneth and how he can help you build wealth and achieve a better lifestyle by going here.