If you’re struggling with debt, you likely feel like the weight of the world is resting on your shoulders each and every day. Whether it is due to student loans, mortgages, credit cards or other financial struggles, the clutches of debt are enough to make anyone feel trapped and helpless. Luckily, no matter how bad your debt may seem, there are techniques for living debt free.
By taking five easy steps, you can begin eliminating your debt, cleaning up your credit and enjoy financial independence fast.
#1 Lock Up Your Credit Cards
The first step is to lock up your credit cards and make all purchases using only the money in your wallet or checking account. Often, people feel that purchasing on credit is simply buying them time before they have to pay up. In reality, you’re only digging yourself a deeper hole.
#2 Make a List of Your Financial Goals
Secondly, make a list of all of your financial goals and set a timeline toward living debt free. Your goals may include buying a home, taking a vacation or purchasing a new vehicle. Keep in mind that these types of goals cannot be accomplished until you eliminate your debt. Your goals can serve as incentive to pay off your debt as fast as possible.
#3 Create a Budget
Third of all, create a budget. Calculate all of your monthly bills and living expenses and decide the minimum amount of money you can live off of while you work towards living debt free. Consider eliminating unnecessary bills such as health clubs or downgrade your cable plan. The extra money you save can be used to reduce your debt.
#4 Hold Yourself Accountable
The fourth step to living debt free is to hold yourself accountable. Debt is a slippery slope and often it is hard to determine the “wants” from the “needs.” Keep a list of your expenditures and post it on your refrigerator. If you share an account with another person in your home, ensure that they also track their spending so you can determine where you overspend and where you can cut back.
#5 Get Help
Finally, be sure to seek professional advice. Our Solutions Specialists are experienced in debt elimination and can advise you of the best methods for your unique situation. While some people can eliminate their debt by using our Debt Consolidation program, others may need to go with Debt Settlement. Whichever method you end up choosing, our debt specialists can help you take the next step to living debt free.
photo by: woodleywonderworks
