The average American has $38,000 in debt, and that is excluding mortgages. Many people feel that working on debt elimination is a near-impossible dream.
Having no debt seems like a fairy tale that is always out of reach. If you’re drowning in debt, we are going to give you some tips to start treading water and seeing results.
Continue reading this article to learn how to pay off crippling debt.
1. Get Real
Before you can start to see any results, you need to get real with yourself. Open all of the bills and add everything up. While it might look ugly right now, it is important that you know what you’re dealing with.
If you don’t know where you’re starting, it is going to be difficult to make a plan that is actually going to work.
2. Develop a Proper Mindset & Motivation
Without the proper mindset and motivation, you’re building your house on the sand. It’s going to crumble, and you’re not going to be able to get the results that you want because you’ll quit when it gets uncomfortable.
Know exactly why you’re working on getting out of debt. Do you want to have more money to save or go on vacation? Maybe you are tired of feeling like you never have enough money at the end of the month, and you want to create more wiggle room.
3. Track Spending
Making a list of your bills is a good start, but you also need to know what you’re actually spending.
It’s not uncommon to spend $20 here and $50 there and not even think about it. At the end of the month, you’re living on your credit cards, and you have no idea why.
Tracking spending will allow you to notice where your money is going that you hadn’t been noticing before.
4. Pay Off Bills in a Wise Way
If you have loans with extremely high interest, pay those loans off first. Paying down loans with high interest will allow you to save a lot of money, and then you can put the money you were paying on these loans toward the others.
If you’re dealing with tax debt, you should speak to tax debt relief specialists since you may be able to get a better deal on paying back your debt.
5. Understand Your Spending Habits
Now that you’ve put everything together, you have all of the information you need to start getting out of debt.
Review your spending habits and understand your triggers. Understanding your triggers is important, so you can stop spending money you don’t need to and keep paying off your debt.
Say Goodbye to Debt with a Great Debt Elimination Plan
Now you know how to start working toward debt elimination. If you’re tired of dealing with the pain of debt, the above tips will help you as you work toward seeing the light.
Do you need more help with money issues? Our site is full of articles that can help you with investing and other important parts of being wise with your money.
Browse our site to find the best finance and investment articles, bookmark the ones that pique your interest, and come back again soon.
Latest posts by The Fortunate Investor (see all)
- The Best Ways to Find a Job: What Websites You Should Look At - February 20, 2020
- A Complete Beginner’s Guide to Money and Investing - February 19, 2020
- Beyond Business: How to Start Your Own Brand - February 18, 2020