If you’re in debt it can seem like the end of the world. The feeling of not being able to afford the things you want to buy, go to the places you want to visit and experience the life you want to have is beyond disappointing. Trust me I know.
I used to be over $50k in debt and five years later I’m happy to say that I’m living debt free. Let me tell you the path to getting out of debt is not easy by any means, but the lifestyle of living without debt is fantastic. The freedom to splurge a little when I need to without having the spending affect my regular monthly obligations is liberating. It’s truly financial freedom.
By no means am I rich, but for the first time in my 35 years of living I am financially stable, I have some money in the bank and I actually have a retirement account. This was all possible because I now have the freedom to spend my money how I want to – instead of having to put it towards debt.
If you want to get out of debt use these four tips to help make it happen:
Consider a consolidation loan
A consolidation loan takes all of your debts and puts them into one big account with one easy monthly payment. As a young girl in her early 20s I got a consolidation loan – with the help from my Dad as a co-signor.
That’s the thing about a consolidation loan, it’s easy to manage because you only have to make one monthly payment instead of several different payments to multiple credit cards. However it’s hard to be approved for a consolidation loan because the odds are when you need it you are already maxed out on credit and therefore your credit score might not be so great. If you want to consolidate all your debts into one monthly payment you should have a co-signor in mind.
Stop spending or doing whatever got you in debt
I racked up a ton of debt because I lived beyond my means – way beyond my means. Sit down and think what got you into debt and whatever it was just stop doing it. If you spend money one eating out then learn to cook, if you applied for credit cards because you shop a lot then stay home.
When you want to achieve one goal in your life it usually means you have to give up something else and that’s just the way it goes. No one said that paying off debt was easy and it does require some sacrifices, but every time your outstanding debt gets lower it will all be worth it. Learn to just say no to spending and yes to making more debt payments.
Set a debt free date
This was one of the biggest mistakes I made when I first decided to start paying off debt. I just thought I would make monthly payments and my debt would eventually be paid off whenever I put aside enough money to do so. Big mistake.
In the business world it’s said that “What gets measured gets achieved.” The same thing is true for your debt. Making payments in hopes of someday becoming debt free is a big mistake and can carry on forever. A better route is to set a debt free date and do whatever you need to in order to make that happen. I’m serious get a second job and live in the dark, make sure your debt gets paid off by any means necessary.