Just as nothing worthwhile is easy to do, getting out of debt clutches will take time and effort. To help you with this, I want to give you four suggestions:
As no one builds a house without a project, so don’t live your life without a budget. A budget must be made in writing each month before the month begins. It must be very simple. On a paper, you write what you earn and your expenses. The basis is: Everything that comes in except everything that comes out has to be zero. Stop living beyond what you have in your bank account! And live with the plan that was written on paper. This is the secret weapon of the rich.
You need a financial mattress.
You will not be able to get out of the vicious cycle of debt without first having a small emergency fund. Before you start attacking debt, you have to protect yourself from life scams and save $ 2,000 over the next 30 days. If this sounds absurd to you, I challenge you to sit down and think about what could be done to add that amount. I assure you that you will be amazed at how creative we are when we have a target.
Get rid of debt by using the snowball. Make a list of your debts, from lowest to highest, regardless of interest. Make minimum payments on all but the smallest debts. Then attack the smallest debt with all the extra money you can earn and adjust the budget. When you pay off the smaller debt, use that money for the next minimum debt paid and so on until you totally get rid of the debts.
Strength and a lot of courage.
No more sending our money to the banks as if we were slaves! Note that banks have been taking a lot of money from us, and that has been a hot topic in our conversations at home. You may fall into a financial hole without realizing it, but for you to get out of debt, you need to have a plan and determination to follow it. Close your eyes and dream about how you will change your life and live without pay. Now use these goals as fuel to stay focused and get rid of debt!