[Read: [Read: Useful Tips on Ways to Get Out Of Debt]]
Being burdened by debt is not a good feeling. Unfortunately, most people struggle with it at some point in their lifetimes. Whether your debt seemed to sneak up over night, was a result of overspending, or was because of your quest for higher education, you have the power to get out of debt. Your debt will not magically disappear, so now is a good time to get motivated to become debt free. Here are the 5 golden rules of getting out of debt:
[Read: [Read: Useful Tips on Ways to Get Out Of Debt]]
1. Stop spending what you don’t have.
Sounds easy, right? Many of us fall victim to the game of charging it now and paying it off later. The idea of money that you can pay back later sounds so enticing. You don’t see cash in your hand, only a credit card, so it doesn’t really feel like you’re spending money, right? When the credit card bill comes, reality hits hard. Don’t let this continue happening to you. Stop using your credit card unless you are able to pay back or pay down what you have already spent. Leave your credit cards in a safe place at home, if need be, to avoid the enticement of spending altogether.
2. Create weekly goals.
Weekly goals are an important part of the 5 golden rules of getting out of debt. When you first begin your journey to get out of debt, those small, manageable goals will help you stay on track. Weekly goals will allow you to see immediate results and help you stay motivated. Weekly goals will also help you keep track of where you spend and overspend so that it isn’t week 3 of the month by the time you realize something has gone wrong. If you set a food budget of $350 for the month, break it down by week so that you know exactly what you can spend each week in groceries, eating out, etc. so that you stay on track.
3. Create monthly goals.
If you are a visual learner, write down and draw out a visual of your monthly goals. Put this in your office or bedroom so that you see it every day and remember the big picture that you are working towards by following the 5 golden rules for getting out of debt. Remind yourself of how much you hope to save or pay down at the end of each month so that you don’t neglect your goals.
4. Reward yourself.
Are you surprised that this is one of the 5 golden rules of getting out of debt? Treat this rule as you would have a “rest day” from working out or a “cheat day” on a diet. Pushing yourself unrealistically leads to frustration and feeling overwhelmed, and often leads to failure in achieving your goals. Rather than forcing yourself to be perfect, remember to reward yourself for your achievements each month. You can do this in small ways, such as treating yourself to a movie night at home or take-out from your favorite restaurant.
5. Ask for help.
This is something many of us struggle with, especially me. It can be so difficult to swallow your pride and acknowledge that there is a problem you cannot fix on your own, whether you need help with debt or otherwise. Fortunately, there are people who can and are willing to help! Contact your creditors to see if they have any solutions to assist in lowering your interest rates. You may be surprised at what they can offer you. Some programs do not require you to close your accounts to do this, and often times this will not penalize your credit score.
[Read: Useful Tips on Ways to Get Out Of Debt]
The 5 golden rules of getting out of debt are here to help you stop amassing more debt before it becomes an overwhelming situation in which your only option is bankruptcy. Begin slowly and try to figure out how you got into debt in the first place. This will allow you to become proactive so that you don’t fall into the same traps as you did before. Put your efforts into breaking those negative habits so that you can experience a debt free life. Remember that setbacks are okay, and all progress is positive. With the right attitude and the 5 golden rules of getting out of debt, you can be living debt-free faster than you imagined!