7 Steps to reject the “Everyone has debt” mentality

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By: Good Nelly
on 6th Feb,2017

Do you have the “Everyone has debt” mentality? It is time to ditch this mentality. Instead, create a suitable debt repayment plan to find your way out of debt problems. Check out 7 steps to get out of debt.
tips-to-reject-everyone-has-debt-mentality
Scenario 1: You plan to get married and decide to splurge on your wedding. It’s your wedding and you want to celebrate it the way you want. However, while doing so, you keep on swiping your credit cards without realizing that you’d have to pay back the amount. So, you invite DEBT while starting a new life, which you might have to struggle to pay back. So, instead of starting your new life with DEBT, isn’t it better if you arrange your wedding celebration on a budget?
Scenario 2: You know that you can purchase whatever you want with a credit card and so start spending without even thinking that you’d have to pay the outstanding balance on your card. Moreover, you’d have to pay interest if you can’t pay the entire balance in the same billing cycle. So, you invite DEBT.

Many people experience such similar situations at least once because they believe in the fact that “Everyone has debt” mentality.

However, it is high time you need to change this mentality to have a better financial future.

But, what will you do if you’re already in debt due to some past mistakes or emergency financial situations?

You keep hearing stories of people overcoming debt problems in their lives and wonder “Is this possible? Can I also get out of debt?”

Yes, IT IS POSSIBLE to get out of debt. What you have to do is overcome your “Everyone has debt” mentality.

Yes, it is true that some debts help you build a good credit score, but, you need to manage it efficiently and repay it within the stipulated time.

According to USA Today, 46% people were suffering from debt-related stress in 2011 and the figure has increased to 69% in 2015.

An average household had about $132,525 debt in 2016.

This means that these people are facing debt problems and trying to find out a solution instead of having good debt and managing it responsibly.

So, if you’re worried about debt, you need to FIND A SOLUTION.

1 Ditch the “Being in debt” mentality

Tell yourself “I can do it”. Once you promise yourself, you’ll definitely find a way out. If not, then you may take professional help to repay debt.

When you make a promise to solve your debt problems, you can embrace the lifestyle changes you need to do to repay debt till the last cent.

2 Change your mindset about money

You have to create a mindset that you’ll do everything to meet your short and long-term financial goals.

3 Plan a budget

Instead of viewing ‘budget’ as a thing you hate, view it as a road map to attain financial freedom, of which, getting out of debt is a primary one.

Start following your budget and unknowingly you’ll adopt the changes in your lifestyle one by one.

4 Create a plan to repay debt

Take out time and create a suitable debt repayment plan. By “suitable” I mean a plan which you can follow until you repay your unsecured debts completely and be current on your other loans. If you want to use DIY strategies, you can use debt snowball or debt avalanche method.

DIY strategies will work best for you if you can stay motivated to repay till the last debt in your list.

To succeed, you have to change your “Everyone has debt” mentality and instead promise yourself to be out of debt come what may.

However, if you want professional help to repay your dues, you can enroll in a consolidation or a settlement program.

In such a program, the consolidation and/or settlement company will also help you plan a budget to save money, which you can use to solve your debt problems.

5 Opt for paying cash

Forget digitization for the time being.

It will be easier for you to save more if you opt for paying in cash instead of using the card. This way, you actually know how much money you presently have, and what amount you can spend.

6 Be aggressive towards saving

It will help you a lot! You’ll have to start saving aggressively; that is, SAVING will be your first priority.

And, for this, you might have to make changes to your lifestyle for few days. For example, stop eating out for a while and don’t go for shopping only to spend time with your friends. Instead, visit your friend's home or throw a potluck party.

Initially, it may seem a bit difficult, but it’s worth it to end your debt problems.

7 Every morning remember your resolution

After you wake up every morning, remember your resolution - your motto to ditch the “Everyone has debt” mentality and to work your way out of DEBT.

Sometimes, you’ll feel to give up as you’ve already paid a portion of your debt. But, DON’T STOP!

Whenever you think to give up, remember the reason for what you’re doing this…

To achieve financial freedom? To save for retirement? To have a life you’ve dreamt for long? To live life on your own terms?

Whatever be the reason, it’ll get you going.

However, go easy sometimes when you reach a milestone - may be, when you repay one debt.

It’ll help you to stay motivated until you repay the debts you want to and be current on your secured or other amortized loans.

While ditching the “Everyone has debt” mentality, don’t forget to build an emergency fund. It will help you stay out of debt.

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