The process of getting into debt is a lot easier than the process of getting out of debt, and when your emotions are mixed with your financial decisions the challenge is even harder. In recent statistics, the total amount of credit card debt for Americans is $854.2 billion and counting. Wouldn’t it be nice if your money was taken out of that statistic?
The following six tools can help out of being a statistic and reach your financial goals to be “debt-free”. These quick tools are here to help eliminate your debt and get your finances back in order, but it’s a matter of your actions and determination that will keep debt away.
1. Write down all your debt on paper. Stay away from details for now, we just want to collect all the avenues of debt you have to provide a visual of where you’re spending and losing money.
2. Use an excel spreadsheet to sort through all your debt and categorize your finances. Now is your time to sort through this list. Set categories of each credit card, interest rates, payments and payoff amounts.
3. Take advantage of the debt repayment calculator to begin the process of making minimum payments on your debt. Using your excel spreadsheet, add a column for minimum repayments. See which debt needs to be paid off now and which ones can hold off with minimum payments until you’re financially capable of raising those amounts.
4. Pay your bills on time. Please make all of your payments on time as this effects your credit score and financial future. At least scrap up enough money to make these payments so you’re not jumping from one financial challenge to another.
5. Talk to your spouse. If you’re concerned with spending habits and the setback on making payments, then talk things through your spouse. It will only get worse if you keep your emotions inside, building up for a disaster when debt hits the fan!
6. Create a budget and stick to it until all debt is paid off. After the talk with your spouse, sit down and write out your financial goals for the next month, year, five years and even ten or twenty years from now. Starting with short-term goals you will soon be into your long-term goals and financially free from debt!
We understand this is a process and you must understand it will take time to become debt-free. If it were so easy to get out of debt, then the $11.68 trillion Americans owed in debt, would be gone.
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