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 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.
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.
- You can check out - Mind tricks to help save money - Primary goal of managing finance.
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.
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!
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.
While ditching the “Everyone has debt” mentality, don’t forget to build an emergency fund. It will help you stay out of debt.