“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” – Will Rogers
You’ve finally had enough. You’re fed up with always being in debt. You want to break free and start saving up. You want to get out of debt and change your whole life around. You don’t want to feel strangled anymore. You’re tired of working hard just to pay off past purchases.
Do you want get a handle on your debt so that you can finally travel more or go out without feeling so guilty about your money?
You don’t have to let your debt manage you. Here’s how to go about getting control of debt:
Strategy #1: Accept that you have a spending problem
You have to accept that something is wrong first before you can see any results. You’ll never pay off your debt if you keep on running away from the problem. The first step is acceptance. Honestly confront that reality and you’ll be ready to move forward.
Strategy #2: Consider a balance transfer
Have you considered a balance transfer? This strategy helps with getting a jump-start on your journey to financial freedom. By transferring your debt to another card with an introductory rate of zero, you have the potential to save some serious money while you chip away at that debt. Pay attention so that you don’t forget when that introductory rate goes away.
A balance transfer is the perfect trick to get you started because those credit cards with an 18% rate will delay your freedom from debt.
Strategy #3: Work on a plan to pay off debt
I know that this strategy sounds obvious, but hear me out. The plan you choose can lead to ultimate success. Figure out if you’re going to go after the smallest balance for a quick win or start paying first on the balance with the highest interest payments to do the right thing financially.
What plan will you follow? How will you attack this debt? This is for you to decide. For many people, the psychological win of starting with the small balance works better than the financially “rational” method of tackling the highest interest rate first. Getting control of debt is about figuring what will work for you. The “best” system in the world is useless if you aren’t committed and you wind up in the same place again.
Strategy #4: Cut up your plastic (not a long term plan)
I obviously don’t suggest this for the long run. Sometimes you just have to burn the boats. You might want to cut up your plastic and move on with your life for now. Some of us are not meant for credit cards. Try using cash for a few months. See if your spending improves with cash. Then when you’re ready, return to the plastic.
Strategy #5: Print off your balance and look at it daily
We often forget how much money we owe. We don’t think about it. We swipe and we move on. Print out your balance and keep it around as a reminder. You need to look at this balance. You need to be reminded of the reality of your situation on a daily basis.
It’s time to get a handle on your debt so that you can go back to normal living. Have some fun without feeling guilty. You can’t do that until you pay off your debt. Let’s destroy this debt and start to enjoy life again.